United Mortgage Brokerage, Inc - Settlement Agreement
STATE OF NEW YORK
In the Matter of
United Mortgage Brokerage, Inc.
A Mortgage Broker Registered Pursuant to
WHEREAS, United Mortgage Brokerage, Inc. ("United" or the "Registrant"), was granted a registration on August 10, 1999 to engage in business as a registered mortgage broker pursuant to Article XII-D of the New York Banking Law (the "Banking Law") and currently maintains its headquarters at 101 Fairchild Avenue, Suite 5, Plainview, NY 11803; and
WHEREAS, on January 20, 2006, the Banking Department (the “Department”) received a copy of an advertisement bearing the Official Great Seal of the State of New York; and
WHEREAS, United’s use of the advertisement represents a violation of Part 38.2(e) of the General Regulations of the Banking Board (“GRBB”) which reads “No mortgage broker, mortgage banker or exempt organization shall fraudulently or deceitfully advertise or misrepresent the terms, conditions or charges incidental to a mortgage loan in any advertisement; and
WHEREAS, in 2003 and 2004, the Department cited United for advertisement violations relating to the Registrant’s failure to include APR in its advertisement and to comply with the provisions of Part 38.2(a) and (d) of the GRBB: and
WHEREAS, Part 38.2(a) requires the inclusion of the legend “Registered Mortgage Broker-NYS Banking Department” and Part 38.2(d) requires a statement to the effect that mortgage brokers arrange mortgage loans with third-party providers; and
WHEREAS, the Superintendent and the registrant mutually agree to resolve such Violations by the imposition, pursuant to New York State Banking Law Section 44, of a fine in the amount of $10,000 in lieu of commencing a hearing seeking revocation of its mortgage broker’s registration;
NOW, THEREFORE IT IS STIPULATED AND AGREED BY THE PARTIES HERETO AS FOLLOWS:
THAT, the Registrant agrees as follows:
- United, fully understanding the terms and conditions of the Settlement Agreement ( the “Agreement”), freely and voluntarily waives its right to a hearing on the violation cited and any and all appeal relating to this matter.
- United will take all necessary steps to ensure compliance with all applicable federal and state laws and regulations relating to its mortgage business;
- United agrees to pay a fine in the amount of $10,000 payable upon execution of this Agreement. Payment shall be made by electronic transfer, in immediately available funds, pursuant to transfer instructions received from the Banking Department.
- United will develop a formal written advertisement policies and procedures designed to ensure compliance with all applicable federal and state laws, regulations and supervisory requirements. The policies and procedures shall, at a minimum, address:
- Designation of an individual responsible for monitoring compliance with all applicable laws, regulations and supervisory requirements;
- Methodology for ensuring that United and its employees are knowledgeable of regulatory and legislative changes and supervisory requirements:
- Within ninety (90) days of the execution of this Agreement, United will submit draft copies of its advertisement policies and procedures to the Banking Department for review;
- Within one hundred twenty (120) days of the execution of this Agreement, United will submit final copies of its advertisement policies and procedures, approved by an authorized officer, to the Banking Department for review;
- All communication regarding this Agreement shall be sent to:
Rholda L. Ricketts
Deputy Superintendent of Banks
Mortgage Banking Division
New York State Banking Department
One State Street
New York, NY 10004
Mr. Andrew Datlo
United Mortgage Brokerage, Inc
101 Fairchild Avenue, Suite 5
Plainview, NY 11803
- The provisions of this Agreement shall not bar, estop or otherwise prevent the Superintendent, or any state or federal agency or department, from taking any other action affecting the registrant, any of its current or former officers, directors, employees, or insiders, or their successors or assigns with respect to the matters relating to this Agreement or other matters not relating to this Agreement.
- No extension or waiver of the terms of this Agreement shall be binding on the Banking Department unless it is in writing and signed by the Superintendent or a designated Deputy.
- Each provision of this Agreement shall remain effective and enforceable until stayed, modified, terminated or suspended in writing by the Superintendent or a designated Deputy.
- The effective date of this Agreement is the date on which it is executed by the Superintendent or a designated Deputy.
- The provisions of this Agreement are not confidential.
Agreed to and accepted by: