og , « fs ‘Ny ta, 4 Veg ly, 4 STATE OF FLORIDA Wig» "1p OFFICE OF FINANCIAL REGULATION ee 4p Mp “ IN RE: Administrative Proceeding Docket Number: CORE FINANCIAL INC., MATT HUMPHREY | 68635 / 7] ~ 24K, and SARAH HUMPHREY, Respondents ADMINISTRATIVE COMPLAINT The State of Florida, Office of Financial Regulation, (“Office”) files this Administrative Complaint against CORE FINANCIAL INC., MATT HUMPHREY and SARAH HUMPHREY (“Respondents”), alleging: GENERAL ALLEGATIONS 1. Pursuant to section 494.0011, Florida Statutes, the Office is charged with administering and enforcing the provisions of Chapter 494, Florida Statutes. 2. Pursuant to section 494.00255(1)(u), Florida Statutes, it is a violation for any person who is licensed, or required to be licensed under Chapter 494, to fail to comply with any provision of Chapter 494, Florida Statutes. 3. At all times material, Respondent, Core Financial Inc. is or has been a Mortgage Lender pursuant to Chapter 494, Florida Statutes, having been issued license number MLD535. 4. At all times material, Matt Humphrey has been president and 51% owner of Core Financial Inc., and Sarah Humphrey has been vice president and 49% owner of Core Financial Inc. Page 1 of 8 5. Pursuant to section 494.00255(1)(u), Florida Statutes, failure to comply with any provision of Chapter 494, Florida Statutes, or any rule issued thereunder, constitutes grounds for disciplinary action. 6. Pursuant to section 494.00255(2)(f), Florida Statutes, a person found to be in violation of Chapter 494, Florida Statutes, is subject to a license suspension, license revocation, and/or imposition of a fine in an amount up to $25,000 for each count or separate offense. 7. The Office conducted an exam (exam #62759) covering the period from July 1, 2014 to September 30, 2015. COUNT I 8. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 9. Section 494.00165(2), Florida Statutes, states that each person required to be licensed under Chapter 494 must maintain a record of samples of each of its advertisements, including commercial scripts of each radio or television broadcast, for examination by the Office for 2 years after date of publication or broadcast. 10. Respondents failed to maintain a record of samples of advertisements it ran for the requisite 2-year period, in violation of sections 494.00165(2) and 494.00255(1)(u), Florida Statutes. 11. Therefore, the Office is seeking a fine of $3,500 and a 10-day suspension of license. COUNT II 12. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. Page 2 of 8 13. Rule 69V-40.265(1), Florida Administrative Code, provides that each mortgage lender shal! maintain a Mortgage Brokerage and Lending Transaction Journal, which shall include the date applicant applied for the mortgage loan. 14. Respondents failed to include the date the applicant applied for the mortgage loan in its Mortgage Brokerage and Lending Transaction Journal, in violation of section 494.00255(1)(u), Florida Statutes, and Rule 69V-40.265, Florida Administrative Code. 15. Pursuant to Rule 69V-40.265(5), Florida Administrative Code, the penalty for failure to maintain the Mortgage Brokerage and Lending Transaction Journal shall be the issuance of a “notice of noncompliance” for a first offense. 16. Therefore, the Office is seeking a notice of noncompliance. COUNT Il 17. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 18. Section 494.0067(10), Florida Statutes, states that each mortgage lender shall submit to the registry reports of condition which are in a form and which contain such information as the registry may require. 19. Respondents failed to submit to the registry reports of condition which contain such information as the registry may require, in violation of section 494.0067(10), Florida Statutes. 20. Therefore, the Office is seeking a fine of $3,500 and a 10-day suspension of license. COUNT IV 21. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. Page 3 of 8 22. Section 494.0067(3), Florida Statutes, requires a mortgage lender to report any change in the information contained in any initial application form, or any amendment thereto, within 30 days after the change is effective. 23. Respondents, in their initial application filed December 30, 2014, listed 4910 14% Street West, Suite 204, Bradenton, FL 34207 as their main address, 24. Respondents changed their main address and failed to report this change to the Office within 30 days, in violation of section 494.0067(3) and 494.00255(1)(u), Florida Statutes. 25. Therefore, the Office is seeking a fine of $3,500 and a 10-day suspension of license. COUNT V 26. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 27. Section 494.0016(1), Florida Statutes, states that each licensee shall maintain, at the principal place of business designated on the license, all books, accounts, records, and documents necessary to determine the licensee’s compliance with this chapter. 28. Rule 69V-40.260(7), Florida Administrative Code (2010) says all documentation originated or received by a mortgage lender must be maintained for three years from the date of original entry. 29. Respondents failed to maintain for three years all emails originated or received, in violation of Rule 69V-40.260(7), Florida Administrative Code and sections 494.0016(1) and 494.00255(1)(u), Florida Statutes. 30. Pursuant to Rule 69V-40.260(8)(a)1, Florida Administrative Code, if a mortgage lender has numerous instances of incomplete files and missing documentation the fine shall be $300 for a first offense. Page 4 of 8 31. Therefore, the Office is seeking a fine of $300. COUNT VI 32. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 33. Section 494.0025(7), Florida Statutes, states that it is unlawful for any person to pay a fee or commission in any mortgage loan transaction to any person or entity other than a licensed mortgage broker or mortgage lender, or a person exempt from licensure under Chapter 494, 34. Respondents paid a fee or commission in a mortgage loan transaction to the following entities who were not licensed mortgage brokers or lenders, or exempt from licensure under Chapter 494, in violation of sections 494.0025(7) and 494.00255(1)(u), Florida Statutes. a. B Powerful Promos, Inc. b. Prime Financial Partners c. John Gislason d. Streamline Mortgage Processing Inc. 35. Therefore, the Office is seeking a fine of $7,500 and a 20-day suspension of license. COUNT Vil 36. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 37. Section 494.0067(1), Florida Statutes, states that a mortgage lender that makes mortgage loans on real estate in this state shall transact business from a principal place of business. Page 5 of 8 38. Section 494.001(30), Florida Statutes, defines ‘principal place of business’ as the mortgage lender’s primary business office, the street address, or physical location that is designated on the application for licensure or any amendment to such application. 39. Respondents, in their application dated December 30, 2014, listed their main address as 4910 14" Street West, Suite #204, Bradenton, FL 34207. On March 16, 2016, Respondents amended their main address to 8401 J R Manor Drive, Suite #100, Tampa, FL 33634. 40. Respondents failed to transact business from the main address at Bradenton that they listed on their application, at all times that it was its listed main address, in violation of section 494.0067, Florida Statutes. 41. Therefore, the Office is seeking a fine of $3,500 and a 10-day suspension of license. WHEREFORE, Respondents CORE FINANCIAL INC., MATT HUMPHREY and SARAH HUMPHREY are hereby notified that the Office intends to enter an Order imposing an administrative fine of $21,800, a 60-day suspension of license, and a notice of noncompliance. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] Page 6 of 8 NOTICE OF RIGHTS The licensee is entitled to be represented by counsel or other qualified representative. The licensee also has the right to request a hearing pursuant to sections 120.569 and 120.57, Florida Statutes. Such request must comply with rules 28-106.2015 and 28-106.104, Florida Administrative Code. An Election of Proceeding form is attached for your convenience. Any such request must be filed as follows: By Mail or Facsimile OR By Hand Delivery Agency Clerk Agency Clerk Office of Financial Regulation Office of Financial Regulation P.O. Box 8050 General Counsel’s Office Tallahassee, Florida 32314-8050 The Fletcher Building, Suite 118 Phone: (850) 410-9889 101 East Gaines Street Fax: (850) 410-9663 Tallahassee, Florida 32399-0379 Phone: (850) 410-9889 TO PRESERVE THE RIGHT TO A HEARING, A WRITTEN RESPONSE MUST BE FILED WITH THE OFFICE OF FINANCIAL REGULATION WITHIN TWENTY-ONE (21) DAYS AFTER THE RECEIPT OF THE ADMINISTRATIVE COMPLAINT. SAID RESPONSE MUST BE RECEIVED BY THE OFFICE NO LATER THAN 5:00 P.M. ON THE TWENTY-FIRST DAY AFTER THE RECEIPT OF THE ADMINISTRATIVE COMPLAINT. A FAILURE TO TIMELY RESPOND IN WRITING WILL CONSTITUTE A WAIVER OF THE LICENSEE’S RIGHT TO REQUEST A HEARING AND A FINAL ORDER MAY BE ENTERED WITHOUT FURTHER NOTICE. You may not make an oral request for an administrative hearing. With regard to a written request, if you fail to follow the outlined procedure, your request may be dismissed. Any request for an administrative proceeding received prior to the date of this notice is deemed abandoned, and to be considered, must be timely renewed in compliance with the procedure set forth above. Mediation of this matter pursuant to section 120.573, Florida Statutes, is not available. Page 7 of 8 DATED and SIGNED this 2- 2 day of Keto , 20 4 DREW J. BREAKSPEAR’ ffice of Financial Regulation Fla. Bar No. 0506877 400 W. Robinson St., S-225 Orlando, Florida 32801-1799 (407) 245-0601; fax (407) 245-0806 jennifer.lozano@flofr.com 41 7199 9991 7036 1897 4225 Page 8 of 8

Docket for Case No: 17-002446