Business ProfileforTLA Bancorp, Inc

Gov. Action
November 29, 2021 The following describes a settlement that has been formally brought by a government agency. The Department of Financial Protection and Innovation, alleges and charges as follows:
This Settlement Agreement is entered into by and between the Acting Commissioner of Financial Protection and Innovation (Commissioner) and Respondents Thomas Costabile (Costabile), TLA Bancorp, Inc. (TLA), and The Lending Answer (collectively, Respondents) and is made with respect to the following facts:

On or around July 9, 2018, in connection with TLA Bancorp's pending application for a CFL license, Costabile stated, "In RE: The Lending Answer, if we're approved with TLA Bancorp, Inc. by the DBO, this company will be dissolved or placed as a DBA to TLA Bancorp, Inc. Essentially, if TLA Bancorp, Inc. is approved, this will be Thomas Costabile's sole responsibility of operation . . . ."

On or around September 5, 2018, in connection with TLA Bancorp's pending application for a CFL license, Costabile further stated, "The Lending Answer markets to Licensed Professionals only. The Lending Answer has never originated a loan since its inception nor does it market to consumers . . . it never works or has worked with consumers . . . ." (Emphasis applied.)

On or around September 21, 2018, TLA Bancorp obtained its finance lender and broker license.

The Lending Answer has never obtained any license under the CFL or CRMLA.

Neither Costabile nor TLA Bancorp has ever obtained authorization to use the name, The Lending Answer, or the address 28030 Dorothy Drive, Suite 304, Agoura Hills, California 91301, to engage in the business of finance lending or brokering under the CFL or to engage in the business of a residential mortgage lender, servicer, or mortgage loan originator under the CRMLA.

On April 28, 2021, pursuant to Financial Code sections 22714, 50513, and 50327, the Commissioner issued to TLA Bancorp and Costabile the Notice of Intent to Issue Orders Revoking Licenses and Imposing Penalties; Accusation; Statement to Respondent; Government Code sections 11507.5, 11507.6, and 11507.7; and blank Notice of Defense (Accusation), which is incorporated herein by this reference.

Also on April 28, 2021, the Commissioner issued Desist and Refrain Orders and Citations (Orders), which are incorporated herein by this reference, as follows:

To The Lending Answer pursuant to Financial Code section 22712, for unlicensed finance lending or brokering in violation of Financial Code section 22100 and making false, misleading, deceptive representations in violation of Financial Code section 22161; To TLA Bancorp pursuant to Financial Code section 22712, for making false, misleading, deceptive representations in violation of Financial Code section 22161; and using an unauthorized name and address in violation of Financial Code section 22155; and To Costabile pursuant to Financial Code sections 22712 and 50513, for making false, misleading, deceptive representations in violation of Financial Code section 22161; using an unauthorized name and address in violation of Financial Code section 22155; knowingly or recklessly making, or causing to be made any misstatement or omission of material fact pertaining to a loan or loan servicing, in violation of Financial Code section 50503(a)(2); engaging in business under a name not approved by the Commissioner, in violation of California Code of Regulations, title 10, section 1950.122.5(h); and providing brokerage services using an unlicensed entity and failing to disclose his NMLS ID in violation of Financial Code sections 50700 and 50701(c).

On or around May 26, 2021, The Lending Answer, TLA Bancorp, and Costabile were served via certified mail with the Orders at their business address on file. On or around June 17, 2021, TLA Bancorp and Costabile were served via certified mail with the Accusation at their business address on file.

This Settlement Agreement resolves the issues before the Commissioner set forth in Paragraphs A through N above in a manner that avoids the expense of a hearing and other possible court proceedings, protects consumers, is in the public interest, and is consistent with the purposes, policies, and provisions of the CFL and CRMLA.

Final Desist and Refrain Orders and Citations. Respondents admit to the allegations in the Orders and agree that the Orders are final.

Penalty. Respondents shall pay a penalty in the amount of $30,000.00 for the violations set forth in the Orders and Accusation by no later than 30 calendar days after the Effective Date of this Settlement Agreement as defined in Paragraph 25 below. The penalty shall be made payable in the form of a cashier's check or Automated Clearing House deposit to the Department of Financial Protection and Innovation and transmitted to the attention of Accounting - Litigation, at the Department of Financial Protection and Innovation, 2101 Arena Boulevard, Sacramento, California 95814-2306, with notice of the payment concurrently sent to Sophia C. Kim via e-mail at: Sophia.Kim@dfpi.ca.gov.

Suspension of CFL License. Pursuant to Financial Code section 22714, subdivision (a), TLA Bancorp's finance lender and broker license (CFL license number 60DBO-87635) shall be suspended for a period of 90 calendar days starting from the Effective Date of this Settlement Agreement as defined in Paragraph 25 below.

Surrender of MLO License. On the Effective Date of this Settlement Agreement as defined in Paragraph 25 below, Costabile agrees to the immediate surrender of his mortgage loan originator license issued by the Commissioner (NMLS ID 1727092). Costabile further agrees that he will not apply for a new mortgage loan originator license in California for a period of 90 calendar days from the Effective Date of this Settlement Agreement as defined in Paragraph 25 below. Should Costabile apply for a mortgage loan originator license from the Commissioner during that 90 calendar day-period, that license application shall be deemed denied.

To access the full Department of Financial Protection and Innovation press release, please visit: https://dfpi.ca.gov/wp-content/uploads/sites/337/2021/11/Admin.-Action-TLA-Bancorp-Inc.-Settlement-Agreement.pdf