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 AMG Mortgage in Lieu of Advisors Mortgage Group, LLC - Settlement Agreement

State of New York Banking Department


In the Matter of

AMG Mortgage in Lieu of Advisors Mortgage Group, LLC

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 AMG Mortgage in Lieu of Advisors Mortgage Group LLC (“AMG Mortgage”) 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 AMG Mortgage of Part 38 of the General Regulations of the Banking Board (“GRBB”), 3 N.Y.C.R.R. Part 38,  and State of New York Banking Law 590.2(c), upon and subject to the terms and conditions hereof.

I. RECITALS

  1. AMG Mortgage, headquartered at 5114 Route 33, Wall, New Jersey 07727 was granted a registration by the Banking Department on May 13, 2008 to engage in the business of a mortgage broker pursuant to Article XII-D of the New York Banking Law (“Banking Law”).
  2. Section 44.1(a) of the Banking Law provides, in part, that the New York Superintendent of Banks (“the Superintendent”) may, in a proceeding after notice and a hearing, require a registered mortgage broker 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 broker 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 broker.
  4. The Banking Department received a consumer inquiry regarding regulated mortgage activities being conducted under the name of AMG Mortgage at 300 Garden City Plaza, Suite 170, Garden City, NY 11530.
  5. The Banking Department received a commitment letter that bears the 300 Garden City Plaza, Suite 170, Garden City, NY 11530 address issued by AMG Mortgage to a New York consumer in 2008.
  6. The document was signed by an AMG Mortgage employee on behalf of the registrant as the officer in-charge of Operations at the Garden City location.
  7. The office located at 300 Garden City Plaza, Suite 170, Garden City, N.Y. 11530 is not a location that was authorized by the Banking Department for AMG Mortgage to conduct regulated mortgage activities. 
  8. Accordingly, the Department alleges that AMG Mortgage violated Section 590.2(c) of the New York Banking Law, which requires that a licensee registrant receive approval to open and maintain one or more branch offices.
  9. AMG Mortgage contends that it never authorized the commitment letter, the letter was never signed by a corporate officer and the letter was in a format and on stationary that had never before been used by AMG Mortgage.

II. SETTLEMENT TERMS AND CONDITIONS

Without admitting or denying the Department’s findings, AMG Mortgage is willing to resolve the alleged violations cited herein by entering into this Agreement and freely and voluntarily waives its right to a hearing under Banking Law Sections 44 and 598.  Therefore, in consideration of the promises and covenants set forth herein, the Settling Parties agree, as follows:

  1. AMG Mortgage  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. Within 90 days of the execution of this Agreement, AMG Mortgage shall develop and maintain a formal written compliance manual designed to monitor on-the-job activities of its employees and ensure that regulated activities are not conducted at unauthorized locations. The manual shall, at a minimum, address:
      1. The designation of an individual responsible for monitoring compliance with activities conducted at each branch office and/ or off-site location;
      2. Branching  procedures and net branching restrictions;
      3. Compliance monitoring procedures;
      4. A Compliance training program for employees and independent contractors;
      5. Record retention and storage;
      6. The handling, safeguarding, and destruction of confidential customer information pursuant to privacy and credit reporting laws; and

  3. Within one hundred and twenty (120) days of the execution of this Agreement, AMG Mortgage shall submit a final copy of its policies and procedures, approved by an authorized officer, to the Banking Department.
  4. AMG Mortgage agrees to pay a fine of $ 1,500.  AMG Mortgage further agrees that such payment will be made in immediately available funds in accordance with Banking Department payment instructions.

III. MISCELLANEOUS TERMS AND CONDITIONS

  1. The Settling Parties acknowledge that AMG Mortgage’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 AMG Mortgage’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 AMG Mortgage, 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. The 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 Departmentl 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
  8. All written communications to AMG Mortgage regarding this Agreement should be sent as follows.
  9. Attention:

      Steven Thomas Myer
                 AMG Mortgage in lieu of Advisors Mortgage Group, LLC
                 5114 Route 33
                 Wall, NJ 07727

     

  10. 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:_____________________
Steven Thomas Myer
AMG Mortgage in lieu of Advisors Mortgage Group, LLC

Dated:                                         

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