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Nicholas Palumbo, d/b/a The Money Express - Settlement Agreement

State of New York Banking Department


In the Matter of

 Nicholas Palumbo, d/b/a The Money Express

A Registered Mortgage Broker Pursuant
to Article XII-D of the New York Banking Law 

SETTLEMENT AGREEMENT


This Settlement Agreement ("Agreement") is made and entered into by and between Fidelity Borrowing Mortgage Bankers (“Fidelity”) and the State of New York Banking Department (“Banking Department”), collectively (“the Settling Parties”), evidencing an agreement between the Settling Parties to resolve, without a hearing, the violations cited herein by Fidelity of Part 38 of the General Regulations of the Banking Board, 3 N.Y.C.R.R. Part 38, upon and subject to the terms and conditions hereof.

I. RECITALS

  1. Money Express, headquartered at 52 Harrigan Road, Hopewell Junction, New York, 12533, was granted a registration by the Banking Department on February 26, 1998 to engage in the business of a mortgage broker pursuant to Article XII-D of the New York Banking Law (“Banking Law”).
  2. Section 44 of the Banking Law provides, in part, that the New York Superintendent of Banks (“Superintendent”) may, in a proceeding after notice and a hearing, require a licensed mortgage banker to pay to the people of this State a penalty for a violation of the Banking Law and any regulation promulgated thereunder.
  3. Part 38, Section 38.8, of the General Regulations of the Banking Board, provides that a mortgage banker may be subject to disciplinary action by the Banking Department for, among other things, violations of Article 12-D of the Banking Law, the regulations promulgated thereunder, or violations of state or federal law indicating that the entity is unfit to engage in the business of a mortgage banker.
  4. Money Express failed to maintain adequate corporate surety bond in favor of the Superintendent..
  5. By virtue of the foregoing, Money Express violated the Superintendent’s Regulations Part 410.14(a) which provides that every mortgage broker registered pursuant to Banking Law, section 591- a shall file with the Superintendent a corporate surety bond in a principal amount of not less than $10,000 or more than $100,000 based on its number of applications.

II. SETTLEMENT TERMS AND CONDITIONS

Money Express is willing to resolve the violations cited herein by entering into this Agreement and freely and voluntarily waives its right to a hearing under Banking Law Section 595 on such violations. Therefore, in consideration of the promises and covenants set forth herein, the Settling Parties agree, as follows:

  1. Money Express agrees to take all necessary steps to ensure its compliance with all applicable federal and state laws, regulations, and supervisory requirements relating to its mortgage business.
  2. Money Express agrees to develop appropriate written compliance policies and procedures designed to ensure compliance with all applicable federal and state laws, regulations, supervisory requirements and guidances.   The policies and procedures shall, at a minimum: (i) designate an individual responsible for monitoring compliance with all applicable federal and state laws, regulations, supervisory requirements and the Guidance Letters; and (ii) establish a training program to ensure that Money Express and its employees understand all applicable federal and state laws, regulations, supervisory requirements and the Guidance Letters.
  3. Within ninety (90) days from the effective date of this Agreement, Money Express agrees to submit a draft of its compliance policies and procedures to the Banking Department.
  4. Within one hundred twenty (120) days from the effective date of this Agreement, Money Express agrees to submit a copy of its final compliance policies and procedures to the Banking Department together with a letter from an authorized officer of Money Express indicating his/her approval of such policies and procedures.
  5. Money Express agrees to pay a fine of $ 5,000 on the effective date of this Agreement.  Money Express further agrees that such payment will be made in immediately available funds in accordance with Banking Department payment instructions. 
  6. Money Express agrees to maintain a corporate surety bond in favor of the Superintendent for a principal amount of not less than $25,000 at all times.

III. MISCELLANEOUS TERMS AND CONDITIONS

  1. The Settling Parties acknowledge that Money Express’s failure to  comply with any of the settlement terms and conditions of this Agreement may result in the Banking Department taking action to revoke Money Express’s registration to engage in the business of a mortgage broker under Article 12-D of the Banking Law. 
  2. The Settling Parties acknowledge that entering into this Agreement shall not bar, estop, or otherwise prevent the Superintendent, or any state, federal or local agency or department or any prosecutorial authority from taking any other action affecting Money Express, any of its current or former owners, officers, directors, employees, or insiders, or their successors or assigns with respect to the violations cited herein, or any other matter whether related or not to such violations.   
  3. This Agreement may not be altered, modified or changed unless in writing signed by the Superintendent or his designee.
  4. This Agreement shall be enforceable and remain in effect unless stayed or terminated in writing by the Superintendent or his designee.
  5. This effective date of this Agreement is the date on which it is executed by the Deputy Superintendent of Banks for Mortgage Banking.
  6. All written communications to the Banking Department regarding this Agreement should be sent as follows
  7. Attention:

Rholda L. Ricketts
Deputy Superintendent of Banks
Mortgage Banking Division
State of New York Banking Department
One State Street,
New York, New York 10004 _

All written communications to Money Express regarding this Agreement should be sent as follows.  

Attention:_

Nicholas Palumbo
The Money Express 
52 Harrigan Road
Hopewell Junction, New York 12533

This Agreement is not confidential; therefore it is available to the public.  

WHEREFORE, the Settling Parties hereto have caused this Agreement to be executed.

 

By:________________________
Nicholas Palumbo, President
Nicholas Palumbo d/b/a The Money Express

Dated:                                               

 

By:                                                     

Rholda L. Ricketts
Deputy Superintendent of Banks
State of New York Banking Department

Dated:                                               

 

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