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Destiny Funding Corp.- Settlement Agreement

State of New York Banking Department


In the Matter of

 Destiny Funding Corp.

A Mortgage Broker registered pursuant to
Article XII-D of the Banking Law

-Respondent-

 

SETTLEMENT AGREEMENT


WHEREAS, Destiny Funding Corp. (“Destiny”), was granted a registration on  September 15, 2000 to engage in business as a mortgage broker pursuant to Article XII-D of the New York Banking Law (“Banking Law”) and currently maintains a principal office at 500 Old Country Road, Suite 315  Garden City, NY 11530; and

Whereas, Section 591-a of the New York Banking Law specifies that as a condition for the issuance and retention of a mortgage broker’s registration, and subject to such regulations as the superintendent shall prescribe, applicants for a registration shall file with the Superintendent a surety bond or make a deposit in an amount and form prescribed by regulations of the Superintendent;

Whereas, Section 410.14 of Part 410 of the Superintendent’s Regulations specifies 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;

Whereas, in accordance with the requirements of Section 410.14 of Part 410 of the Superintendent’s Regulations, Destiny was required to maintain a corporate surety bond in the amount of $25,000 based on its number of New York State applications taken in 2007;

Whereas,on February 5, 2007, the Banking Department received a letter from Fidelity & Deposit Company of Maryland indicating the cancellation of Destiny ‘s corporate surety bond effective July 1, 2007;

Whereas, on April 16, 2008, the Banking Department sent a letter to Destiny by Federal Express and first class mail informing Destiny of the requirements that it obtain a replacement bond, or have the cancelled bond reinstated, or place assets on deposit with the Superintendent;

WHEREAS, Nova Casualty Company issued a $10,000 surety bond for Destiny effective June 10, 2008 and issued a change rider which increased the amount of the surety bond to $25,000 effective June 26, 2008;

Whereas, on October 14, 2008, the Banking Department sent a letter to Destiny by certified mail requiring that Destiny secure a bond retroactive to July 1, 2007, or obtain a deposit agreement of not less than $25,000.00;  

WHEREAS, as of the date of this Agreement, Destiny has not secured a bond retroactive to July 1, 2007,  or obtained a deposit agreement of not less than $25,000.00;

WHEREAS, based on the foregoing, Destiny is in violation of Section 591-a.3 of the Banking Law and Section 410.14 of Part 410 of the Superintendent’s Regulations;

WHEREAS, the Superintendent and the Respondent mutually agree to resolve such violation by the imposition of a fine in the amount of $10,000.00 in lieu of commencing a hearing seeking revocation of Destiny’s registration.

NOW, THEREFORE IT IS STIPULATED AND AGREED BY THE PARTIES HERETO AS FOLLOWS:

THAT, Destiny agrees as follows:

  1. Destiny, fully understanding the terms and conditions of the Settlement Agreement (the “Agreement”), freely and voluntarily waives its right to a hearing on the violations cited and any and all appeals relating to this matter;
  2. Destiny will take all necessary steps to ensure compliance with all applicable federal and state laws and regulations relating to its mortgage business;

    • $1,000 payable upon execution of this Agreement.
    • $1,000 payable on or before the 15th day of each of the following nine months.
  3. Destiny agrees to pay a fine of $10,000 in ten (10) monthly installments as follows:
  4. Payment shall be made by electronic transfer, in immediately available funds, pursuant to transfer instructions received from the Banking Department;
  5. Destiny fully understands the requirements of this Agreement and that failure to meet the above conditions and timeframes shall result in the Banking Department scheduling a hearing for revocation.
  6. All communications regarding this Settlement Agreement shall be sent to:
  7. Ms. Rholda L. Ricketts
    Deputy Superintendent of Banks
    Mortgage Banking Division
    State of New York Banking Department
    One State Street,
    New York, NY 10004

    Mr.  Joseph James Cerullo
    President
    Destiny Funding Corp.
    500 Old Country Road, Suite 315  Garden City, NY 11530

  8. 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 Destiny, any of its current or former officers, directors, employees, or insiders, or their successors or assigns with respect to matters not relating to this Settlement Agreement or any criminal aspect of the concerned matters in this Settlement Agreement.
  9. No extension or waiver of the terms of this Settlement Agreement shall be binding on the Banking Department except if in writing, signed by the Superintendent.
  10. Each provision of this Settlement Agreement shall remain effective and enforceable until stayed, modified, terminated, or suspended in writing by the Superintendent, or his designee.
  11. The effective date of this Settlement Agreement is the date on which it is executed by the Superintendent or his Deputy.
  12. The provisions of this Settlement Agreement are not confidential.

Agreed to and Accepted:

By: ___________________________
Joseph James Cerullo
President 
Destiny Funding Corp.
Dated: _________________________

By: ___________________________
Rholda L. Ricketts
Deputy Superintendent of Banks
State of New York Banking Department
Dated: _________________________

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