Source: http://www.dfs.ny.gov/about/ea/ea081023.htm
Timestamp: 2015-03-06 09:01:22
Document Index: 580878133

Matched Legal Cases: ['art 410', 'art 410', 'art 410', 'art 410', 'art 410', 'art 410']

Enforcement Actions - First Suffolk Mortgage Corp. - Suspension Order
First Suffolk Mortgage Corp. - Suspension Order
First Suffolk Mortgage Corp. A Licensed Mortgage Banker Pursuant
Whereas, First Suffolk Mortgage Corporation (“the Licensee”) was granted a license on January 25, 1984, to engage in business as a mortgage banker pursuant to Article XII-D of the New York Banking Law (the “Banking Law”) and currently maintains a principal office at 1476 Deer Park Avenue, 2nd FLOOR, North Babylon, NY 11703; and
Whereas, on June 6, 2008, the New York State Banking Department (“the Department”) sent a letter to the Licensee, advising that its credit line was due to expire and requesting evidence to confirm that the existing line had been extended or replaced with a new line; and
Whereas, on July 7, 2008 and July 23, 2008, the Department held meetings with the Licensee to discuss the lack of a line of credit, and the adjusted net worth of less than $250,000; and
Whereas, on July 23, 2008, the Licensee responded to the Department’s June 6, 2008 letter, and subsequent discussions, and advised that, effective immediately, it was placing its license under voluntary suspension and taking the necessary measures to obtain a line of credit and obtain a cash infusion into the business; and
Whereas, on August 7, 2008. the Department sent a letter to the Licensee acknowledging the Licensee’s decision to voluntarily suspend mortgage origination activities on New York residential property until the Licensee secured a line of credit of not less $1,000,000 and net worth of at least $250,000. Additionally, the Department requested that the Licensee submit evidence documenting its compliance with Part 410.1(b) (1) and 410.1(b) (2) by September 8, 2008; and
Whereas, on August 12, 2008, the Department sent a 4th and final notice to the Licensee that the second quarter general assessment bill for the fiscal year 2008 - 2009 was unpaid and considerably past due. Additionally, the Department notified the Licensee that payment must be received by September 9, 2008 or its license would be suspended; and
Whereas, on September 5, 2008, the Department sent a letter to the Licensee, advising that the quarterly unaudited financial statements for the period ended May 31, 2008, had not been submitted and was past due, in violation of Part 410.8(m). Additionally, the Department notified the Licensee that it must comply with Part 410.8(m) within 7 days or a hearing for license suspension and revocation would be immediately scheduled; and
Whereas, on September 8, 2008, the Department held a meeting with the Licensee to discuss the lack of a line of credit, the adjusted net worth of less than $250,000; and the failure to pay outstanding general assessment bills totaling $9,579.33; and
Whereas, based on the foregoing, the Licensee is in violation of Part 410.1(b)(1) of the Superintendent’s Regulations for its failure to maintain adjusted net worth of not less than $250, 000; and
Whereas, based on the foregoing, the Licensee is in violation of Part 410.1(b)(2) of the Superintendent’s Regulations for its failure to demonstrate and maintain an existing line of credit of not less than $1,000,000; and
Whereas, based on the foregoing, the Licensee is in violation of Part 410.8(m) of the Superintendent’s Regulations for its failure to submit its May 31, 2008 quarterly financial statements within 45 days of the end of the calendar quarter; and
Whereas, based on the foregoing, the Licensee is in violation of State of New York Banking Law Section 17.2 for its failure to pay its outstanding general assessment bills totaling $9,579.33; and Whereas, this course of action has been necessitated as a result of the lack of available warehouse funds, the lack of adjusted net worth of at least $250, 000, and the non payment of general assessment fees; and
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 or registration, would have warranted the Superintendent in refusing originally to issue such license; and
Whereas, pursuant to Section 17.5 of the Banking Law the Superintendent may, upon notice, suspend any license upon the failure of a licensee to make any payment as required by this section, and the Superintendent may revoke such suspended license, after notice and hearing, for continued failure to make such payment; and
Whereas, the Licensee’s aforementioned actions constitute grounds for suspension or revocation of its license under either Sections 17.5, 595.1(b), or 595.2, as the case may be. NOW THEREFORE, the Superintendent hereby finds that First Suffolk Mortgage Corporation has defaulted in performing its financial obligations by not paying its assessment in a timely fashion as required by Section 17.5. Consequently, the Superintendent hereby immediately suspends First Suffolk Mortgage Corporation’s mortgage banker license. Witness, my hand and official seal of the Banking Department at the City of New York, this 23rd day of October in the year two thousand eight.