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Coral Mortgage Bankers Corp. - Suspension Order

State of New York Banking Department


In the Matter of

Coral Mortgage Bankers Corp.

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

- Licensee -

SUSPENSION ORDER     

 


Whereas, Coral Mortgage Bankers Corp. (the “Licensee”) was granted a license on October 7, 2005, 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 60 East Linden Avenue, Englewood, NJ 07631;

Whereas, Section 410.1(b)(2) of Part 410 of the Superintendent’s Regulations specifies that each mortgage banker shall demonstrate and maintain a line of credit in an amount of not less than $1,000,000 provided by an unaffiliated banking institution, insurance company, or a similar credit facility approved by the Superintendent of Banks;   

Whereas, on May 14, 2009, the Department sent a letter to the Licensee informing the Licensee of the requirements that it demonstrate the existence of a line of credit in an amount of not less than $1,000,000 provided by an unaffiliated banking institution, insurance company, or a similar credit facility approved by the Superintendent of Banks;

Whereas, on June 9, 2009 the Department sent an email letter to the Licensee informing the Licensee of the requirements that it demonstrate the existence of a line of credit in an amount of not less than $1,000,000 provided by an unaffiliated banking institution, insurance company, or a similar credit facility approved by the Superintendent of Banks;

Whereas, on February 12, 2010, the Department sent an email letter to the Licensee informing the Licensee of the requirements that it demonstrate the existence of a line of credit in an amount of not less than $1,000,000 provided by an unaffiliated banking institution, insurance company, or a similar credit facility approved by the Superintendent of Banks;

Whereas, the Licensee was granted until March 11, 2010 to comply with the requirements of Section 410.1(b)(2) of Part 410 of the Superintendent’s Regulations;

Whereas, on April 23, 2010, the Department sent a letter to the Licensee informing the Licensee of the requirements that it demonstrate the existence of a line of credit in an amount of not less than $1,000,000 provided by an unaffiliated banking institution, insurance company, or a similar credit facility approved by the Superintendent of Banks;

Whereas, the Licensee was granted until May 24, 2010 to comply with the requirements of Section 410.1(b)(2) of Part 410 of the Superintendent’s Regulations;

Whereas, to date the Licensee has not demonstrated the existence of a line of credit as prescribed in Section 410.1(b)(2) of Part 410 of the Superintendent’s Regulations;

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 a line of credit in an amount of not less than $1,000,000 provided by an unaffiliated banking institution, insurance company, or a similar credit facility approved by the Superintendent of Banks constitute 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 a line of credit of not less than $1,000,000 provided by an unaffiliated banking institution, insurance company, or a similar credit facility approved by the Superintendent of Banks. 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 1st day of July in the year two thousand ten.

____________________________
Rholda L. Ricketts
Deputy Superintendent of Banks

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