About

Local BBB:

BBB Serving Southeast Florida & the Caribbean

BBB File Opened:

2/19/2021

Business Started:

1/8/2021

Type of Entity:

Limited Liability Company (LLC)

Business Management:

Mr. Jarod L. Dudley, Manager

Licensing information

• As of January 4, 2021, THE DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION OF THE STATE OF CALIFORNIA
  
  In the Matter of:
  THE COMMISSIONER OF FINANCIAL PROTECTION AND INNOVATION,Complainant,
  v.
  JAROD L. DUDLEY, Respondent.
  NMLS LICENSE NO.: 1815628
  
  1. The Commissioner has jurisdiction over the licensing and regulation of persons engaged in the business of making or brokering residential mortgage loans, including mortgage loan originators, under the California Financing Law (CFL) (Fin. Code, § 22000 et seq.) and the California Residential Mortgage Lending Act (CRMLA) (Fin. Code, § 50000 et seq.).
  
  2. Respondent Jarod L. Dudley (Dudley) applied for a mortgage loan originator (MLO) license with the Commissioner.
  
  3. On August 26, 2013, in the Superior Court of New Jersey, Bergen County, Dudley pleaded guilty to unlawful possession of a rifle in violation of New Jersey Statutes Annotated section 2C:39-5C(1), a crime in the third degree.
  
  4. The court sentenced Dudley to three years' probation on October 25, 2013.
  
  5. New Jersey's criminal statutes do not distinguish between felonies and misdemeanors.
  (See N.J.S.A., § 2C:1-4(a) ("Crimes are designated in this code as being of the first, second, third or fourth degree.").)
  
  6. Under New Jersey law, Dudley's unlawful possession of a rifle conviction, a crime in the third degree, carried a maximum penalty of between three to five years imprisonment and/or fines or restitution of up to $15,000.00. (N.J.S.A., §§ 2C:43-6 and 2C:43-3.)
  
  7. Under the definition of the term "felony" provided by the Nationwide Licensing System and Registry (the NMLS), the system of record that administers the MLO licensing application process, "For states that do not distinguish between a felony and misdemeanor, a felony is an offense punishable by a sentence of at least one year imprisonment and/or a fine of at least $1,000."
  
  8. Dudley was convicted of a felony.
  
  9. In order to become licensed by the Commissioner as a MLO, an individual must submit a uniform application form (known as the MU4 or Form MU4) through the NMLS.
  
  10. On August 30, 2020, Dudley applied for a MLO license by filing a Form MU4 through the NMLS. Dudley's application lacked a CFL or CRMLA sponsor.
  
  11. When Dudley applied for his license, Dudley failed to answer one of the questions posed, which asked Dudley if he had ever pleaded guilty to a felony.
  
  12. Specifically, Dudley answered "No" to question F(1), which asked, "Have you ever been convicted of or pled guilty of nolo contendere ("no contest") in a domestic, foreign, or military court to any felony?"
  
  13. Dudley executed his August 30 MU4 under penalty of perjury that his responses were "current, true, accurate, and complete(.)"
  
  14. But a subsequent criminal background check disclosed Dudley's 2013 criminal conviction.
  
  15. On September 10, the Commissioner sent Dudley a license item via the NMLS, requesting that he amend his MU4 application to disclose his 2013 criminal conviction and provide an explanation as to the circumstances surrounding the conviction.
  
  16. On September 11, Dudley filed an amended MU4 application, and changed his response to question F(1) from "No" to "Yes."
  
  17. Dudley subsequently provided the Commissioner with a copy of the Judgment of Conviction document he received from the Superior Court of New Jersey, Bergen County, which showed that Dudley had pleaded guilty to the unlawful possession of a rifle, a crime in the third degree, on August 26, 2013.
  
  18. The Commissioner must deny a MLO license if the licensee fails to meet the minimum criteria for licensure, which includes a requirement that the applicant "has demonstrated such financial responsibility, character and general fitness as to command the confidence of the community and to warrant a determination that the (MLO) will operate honestly, fairly, and efficiently within the purposes of this division."
  (Fin. Code, § 22109.1, subd. (a)(3) and Fin. Code, § 50141, subd. (a)(3).)
  
  19. As described in paragraph 12, on August 30, Dudley answered "No" to question F(1), which asked if he had ever pleaded guilty to a felony. But on August 26, 2013, Dudley pleaded guilty in Bergen County Superior Court to the unlawful possession of a rifle, a felony. Dudley withheld information and made a material misstatement in his MU4 application.
  
  20. Thus, Dudley did not meet the minimum criteria for licensure under the CFL and CRMLA, and his application must be denied.
  
  21. The CFL and CRMLA further provide that the Commissioner may deny a MLO license if a licensee withholds information or makes a material misstatement in an application for a license or license renewal. (Fin Code, § 22172, (a)(2) and Fin. Code, § 50513, subd. (a)(2).)
  
  22. As described in paragraph 12, above, Dudley withheld information and made a material misstatement in his application concerning his 2013 felony conviction by failing to answer "Yes" to question F(1).
  
  23. On November 30, 2020, the Commissioner issued Dudley his notice of intention to deny Dudley's MLO license application, statement of issues, and other supporting pleadings (collectively, Statement of Issues).
  
  24. On December 1, the Commissioner served Dudley by certified mail with the Statement of Issues at his address of record on file with the Commissioner.
  
  25. Dudley did not file his notice of defense with the Commissioner within the time required, and the time to file his hearing request concerning the Statement of Issues has now expired.
  
  26. For the reasons set forth above, the Commissioner finds that Dudley has not demonstrated the financial responsibility, character, and general fitness required under Financial Code section 22109.1, subdivision (a)(3) and Financial Code section 50141, subdivision (a)(3), when Dudley falsely answered "No" to question F(1) in his MU4, which asked if Dudley had ever been convicted of or pleaded guilty to a felony. Dudley was convicted of a felony in 2013.
  
  27. The Commissioner also finds that Dudley withheld information and made a material misstatement in his application for a license under Financial Code sections 22172, subdivision (a)(2) and 50513, subdivision (a)(2).
  
  NOW GOOD CAUSE APPEARING THEREFORE, IT IS HEREBY ORDERED that the application for an MLO license of Jarod L. Dudley is denied. This order is effective immediately.
  
  For further assistance please contact
  Department of Financial Protection and Innovation (DFPI)
  Main Office
  2101 Arena Boulevard
  Sacramento, CA 95834
  (916) 445-7205
  (866) 275-2677
  https://dfpi.ca.gov/
  
  LINK: https://dfpi.ca.gov/wp-content/uploads/sites/337/2021/01/Admin.-Action-Dudley-Jarod-L.-Order-Denying.pdf

Additional Information

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