Moots Mortgage in lieu of true name Northstar Enterprises, LLC - Settlement Agreement
State of New York Banking Department
In the Matter of
A Mortgage Broker registered
WHEREAS, Moots Mortgage in lieu of true name Northstar Enterprises, LLC (“Respondent”) is a registered mortgage broker in the State of New York; and
WHEREAS, pursuant to Section 597 of the Banking Law and Part 410.8(b) of the Superintendent’s Regulations, Respondent is required to annually file a report with the Superintendent giving such information as the Superintendent may require concerning the business and operations of Respondent during the preceding calendar year ; and
WHEREAS , on January 31, 2006, the Banking Department notified Respondent by mail to complete a Volume of Operations Report (“VOOR”) for the 2005 calendar and return it no later than April 17, 2006; and
WHEREAS, on May 8, 2006, the Banking Department notified Respondent by certified mail with return receipt requested that Respondent had failed to file a 2005 VOOR in violation of Section 597 of the Banking Law and Part 410.8(b) of the Superintendent’s Regulations; that the period to file the 2005 VOOR was extended to May 31, 2006; and that failure to file the 2005 VOOR by May 31, 2006 would result in (i) the levy of a fine against Respondent at the rate of $500 per day, for every day after May 31, 2006, that Respondent failed to submit the VOOR and (ii) suspension of Respondent’s broker registration and a hearing being scheduled for revocation; and
WHEREAS, the Banking Department received Respondent’s 2005 VOOR on May 31, 2006; and
WHEREAS, Respondent’s 2005 VOOR as received by the Banking Department on May 31, 2006 contained inaccurate information, in violation of Section 597 of the Banking Law and Part 410.8(b) of the Superintendent’s Regulations; and
WHEREAS, following requests from the Banking Department, Respondent corrected the inaccurate information in a number of communications; and
WHEREAS, in reviewing the aforementioned communications, the Banking Department noted that Respondent had utilized, in four loans that were closed in 2005, names that have not been authorized by the Superintendent in its dealing with New York borrowers, in violation of Article 12-D of the Banking Law and Part 38 of the General Regulations of the Banking Board. The unauthorized names include North Star Mortgage, LLC; Northstar Enterprises, LLC; and additional minor variations of these two names; and
WHEREAS, the Superintendent and Respondent mutually agree to resolve the aforementioned violations as stipulated below.
NOW, THEREFORE IT IS STIPULATED AND AGREED BY THE PARTIES HERETO AS FOLLOWS:
THAT, Respondent agrees as follows:
- Respondent understands the terms and conditions of the Settlement Agreement, freely and voluntarily waives its right to a hearing on the charges made and any and all appeal relating to this matter.
- Respondent will take all necessary steps to ensure compliance with all applicable laws and regulations.
- Respondent agrees to make consumer refunds of $1,000 to the borrowers of each of the four aforementioned loans in which Respondent used an unauthorized name, by the close of business December 15, 2006.
- Respondent agrees to the payment of a fine in the amount of $20,000, in three installments, with the first installment in the amount of $5,000 due by the close of business December 15, 2006; the second installment in the amount of $5,000 due by the close of business March 15, 2007; and the third and last installment in the amount of $10,000 due by the close of business June 15, 2007. The installments shall be made in electronic transfers, in immediately available funds, pursuant to transfer instructions received from the Banking Department.
- Respondent agrees to submit to the Banking Department a written and signed statement that details the enhancement it has made to its operations and procedures to improve compliance with applicable laws and regulations.
- All communication regarding this Settlement Agreement shall be sent to:
Rholda L. Ricketts
Deputy Superintendent of Banks
Mortgage Banking Department
New York State Banking Department
One State Street
New York , NY 10004
Derek R. Moots
in lieu of true name Northstar Enterprises, LLC
109 North Street , Danbury, CT 06811
- The provisions of this Settlement Agreement shall not bar, estop or otherwise prevent the Superintendent, or any state or federal agency or department, from taking any other action affecting Respondent, any of its current or former officers, directors, employees, or insiders, or their successors or assigns in connection with any matter relating to this Settlement Agreement. Nor shall this Agreement bar, estop or otherwise prevent the Superintendent from entering any other action affecting Respondent, any of its current or former officers, directors, employees, or insiders, or their successors or assigns in connection with any matters not covered by this Agreement.
- No extension or waiver of the terms of this Settlement Agreement shall be binding on the Banking Department unless it is in writing and signed by the Superintendent.
- Each provision of this Settlement Agreement shall remain effective and enforceable until stayed, modified, terminated or suspended in writing by the Superintendent.
- The effective date of this Settlement Agreement is the date on which it is executed by the Superintendent or Deputy.
- The provisions of this Settlement Agreement are not confidential.
Agreed to and accepted:
NEW YORK STATE