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Fairfield Financial Mortgage Group, Inc. - Suspension Order

State of New York Banking Department


In the Matter of

Fairfield Financial Mortgage Group, Inc.

A Licensed Mortgage Banker pursuant
to Article XII-D of the New York
Banking Law

- Licensee -

SUSPENSION ORDER     

 


Whereas, Fairfield Financial Mortgage Group, Inc. (“the Licensee”) was granted a license on May 24, 1999, to engage in business as a mortgage banker pursuant to Article XII-D of the New York Banking Law (the “Banking Law”).  Based on the State of New York Banking Department’s (“the Department”) records the Licensee maintains a principal office at 62 Oak Drive, Ste. 2, Syosset, NY 11791;

Whereas, Section 591(4) of the New York Banking Law specifies that as a condition for the issuance and retention of a mortgage banker’s license, and subject to such regulations as the Superintendent shall prescribe, applicants for a license 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 410.8 of Part 410 of the Superintendent’s Regulations specifies that every mortgage banker licensed pursuant to Banking Law Section 591(4) shall file with the Superintendent a corporate surety bond in a principal amount of not less than $50,000 or more than $500,000 based on its aggregate dollar amount of New York loans closed;

Whereas, in accordance with the requirements of Section 410.8 of Part 410 of the Superintendent’s Regulations the Licensee was required to maintain a corporate surety bond in the amount of $150,000  based on its aggregate dollar amount of  New York loans closed;

Whereas, on March 3, 2009, the Department received a letter from Hartford Fire Insurance Company cancelling the Licensee’s $150,000  corporate surety bond effective April 8, 2009;

Whereas, on March 5, 2009, the Department sent a letter to the Licensee informing the Licensee of the requirements that it obtain a replacement bond, or have the cancelled bond reinstated, or place assets on deposit with the Superintendent. 

Whereas, on June 9, 2009, a letter was sent to the Licensee by certified and regular mail informing the Licensee of the requirement that it obtain a replacement bond, or have the cancelled bond reinstated, or place assets on deposit with the Superintendent.  

Whereas, pursuant to Section 595.1(b) of the Banking Law, the Superintendent may revoke a mortgage banker’s license if it is found that any fact or condition exists which, if it had existed at the time of original application for such license, would have warranted the Superintendent in refusing originally to issue such license;

Whereas, pursuant to Section 595.2 of the Banking Law, the Superintendent may on good cause shown, or where there is substantial risk of public harm, suspend the Licensee’s mortgage banker license for a period not exceeding thirty days, pending investigation;

Whereas, pursuant to Section 595.5 of the Banking Law, the suspension of a mortgage banker license shall not impair or affect the obligation of any pre-existing lawful contract between Licensee and any person;

Whereas, the Licensee’s failure to maintain the required corporate surety bond or to place assets on deposit constitutes grounds for suspension or revocation of its license under Sections 595.1(b) and 595.2.

NOW THEREFORE, the Superintendent hereby finds that the Licensee’s  mortgage banker license should be suspended because the Licensee has failed to maintain the required corporate surety bond or to place assets on deposit.  Therefore, a substantial risk of public harm exists and/or good cause exists in that the Licensee has defaulted or is likely to default in performing its financial engagements warranting such suspension.  Accordingly, the Superintendent hereby immediately suspends the Licensee’s mortgage banker license for a period not exceeding thirty days from the date of this Order pending investigation.

Witness, my hand and official seal of the Banking Department at the City of New York, this 28th day of July in the year two thousand nine.

____________________________
Rholda L. Ricketts
Deputy Superintendent of Banks