Monthly summary of mortgage activities, Nov. 2004

Monthly Summary of Mortgage Activities
Georgia Department of Banking and Finance
2990 Brandywine Road, Suite 200, Atlanta, GA 30341-5565
FOR THE PERIOD ENDING NOVEMBER 2004
SUMMARY OF ACTIVITIES - MORTGAGE DIVISION
WEB SITE: www.state.ga.us/dbf
NEWS ITEMS
UPDATE
ONLINE LICENSE RENEWALS - FY 2006
As reported in October's Monthly Summary of Mortgage Activity, the annual license renewal process will soon be underway, and as noted in the article, beginning with the FY2006 licensing period, the Department will be going to an on-line, web-based renewal application distribution and completion system. However, since the October information was provided, it has been determined that ALL licensees will be able to submit the application and the renewal fees and any associated fines on line by means of ACH payments, and possibly by the alternative method of credit card payment, by the time the renewal period begins.
All licensees will use their LICENSE #/USER ID and a unique ACCESS CODE/PASSWORD to access the on-line application system. This User ID/Password will be provided in your individual renewal notice. ALL licensees will access, update, and correct any errors in their specific license information, complete the Calendar Year 2004 operating information on the Renewal Schedules, and make fee and fine payments to complete the process and submit the renewal application on-line.
The Department will then review all submitted applications. If there are any other issues or requirements, such as an expired audit/bond, or any pending administrative actions which require the provision of documentation to the Department, the licensee will be notified of these requirements by e-mail or fax only. It is important to remember that the additional information required must be provided before the renewal can be approved. Applicants who have no qualifying conditions to their renewal should receive no further notice from the Department until they receive their license. It is important to provide correct e-mail or fax numbers.
Applicants who are unable to utilize the ACH payment method may still complete their application review, correction, completion and submission on-line, and then print the required identification pages of the application for hard copy submission to the Department, along with the check payment of required fees and any outstanding fines. You will be prompted regarding the payment method you wish to use. If there are any other outstanding issues, you will then be notified by e-mail or fax. You will be prompted to choose a payment method.

Updated or changed surety bonds and new audits must be submitted under separate cover to ensure proper delivery of these items has been made. IMPORTANT NOTE - Renewals are due by the close of business April 1, 2005. Renewals postmarked, stamped, received electronically or hand delivered after April 1, 2005 are considered late renewals and the licensee will be fined $300. For all licensees, whether submitting renewals on-line or by mail, all outstanding issues which exist or may arise prior to the license issue date, such as any new fines, fees, stale audits, complaint issues, etc. must be resolved before your renewal license will be granted. Licensees who do not complete the renewal process by June 30, 2005, will have their licenses expire, and will have to cease operations. The on-line system will not be available after April 1, 2005.
The renewal notification will be mailed in early February. Please contact the office at renewal@dbf.state.ga.us if you do not receive your renewal notification by February 18, 2005. If you have any problems accessing the on-line renewal system for your specific institution, please contact the Department at 770/986-1269 or e-mail us at renewals@dbf.state.ga.us. Hard-copy forms will be available at: http://www.state.ga.us/dbf/mortgage_forms.html.
The Department hopes that all licensees find the new on-line renewal processes beneficial, and licensees are encouraged to take advantage of this process. By doing more of the process on-line, we will reduce processing time, eliminate mailing concerns, and ensure quality data entry and submission. Hopefully, a successful renewal program will enable the Department to provide more on-line functions regarding your license, such as address changes, fee payments, other license changes, etc., and we would like to thank you in advance for supporting the on-line automation efforts of the Department.
BROKER RENEWAL INFORMATION: NET WORTH RESTRICTIONS
The qualifying financial requirements for brokers changed with the July 2004 legislative changes. In order to meet the financial requirements, brokers must have in place a $50,000 surety bond or the broker must meet the HUD requirements for approved correspondent broker/lender status. This requires that the broker/processor meet the net worth requirements established by HUD. HUD renewal applicants must provide evidence of their HUD approval status, and provide a certified financial audit which meets the qualifying guidelines in GRMA. Non-HUD approved brokers/processors may not qualify for renewal using their net worth.
BRANCH/BRANCH MANAGER FINE AMNESTY PROGRAM
Remember that the last day to benefit from the Branch Fine Amnesty Program is December 31, 2004. Under this program, the Department is offering fine amnesty for the registration of unreported branches and their managers, branch relocations, and changes in managers of previously approved branches. Under the amnesty program provisions, licensees would be able to apply for approval of any branch not previously approved, report changes in managers not previously approved, and report relocation of approved branches without paying the fine for previous failures to do so. Details on the program were provided in the September and October summaries. Please visit our website at www.state.ga.us/dbf/bulletins.html to obtain a copy.
Only applications received by close of business Friday, December 31, 2004 are eligible in order to avoid fines. Applications for new branches, change of address, or change in branch manager can be found on the web at www.state.ga.us/dbf/mortgage_forms.html
Should you have any questions about the program, the Department has set up an e-mail address for your convenience at dbfmort@dbf.state.ga.us. In addition, you may call the Mortgage Division at 770/986-5035.

REG C - HMDA REPORTING: BROKERED OR CORRESPONDENT LOANS: WHO REPORTS?
As implemented by Regulation C, the Home Mortgage Disclosure Act (HMDA) requires covered depository and nondepository institutions to collect and publicly disclose information about applications for, originations of, and purchases of home purchase loans, home improvement loans, and refinancings. Whether an institution is "covered" depends generally on its asset size, its location, and whether it is in the business of residential mortgage lending. Please visit the Federal Financial Institutions Examination Council website and review their publication to determine your reporting requirements and status as a covered institution. It is available at: http://www.ffiec.gov/hmda/guide.htm
Note that when a covered institution makes a loan through a third party such as a broker, the institution, rather than the third party, reports the loan if the institution makes the credit decision. Data on loan applications that do not result in an origination must also be reported by the entity that makes the credit decision. Again, please review your status to determine if you need to report.
FTC ENFORCES GRAMM-LEACH-BLILEY ACT'S SAFEGUARDS RULE AGAINST MORTGAGE COMPANIES & ISSUES FINAL REGULATION ON CONSUMER INFORMATION AND RECORDS DISPOSAL
On May 23, 2002 the Federal Trade Commission (FTC) published final Standards for Safeguarding Customer Information. In summary, among other provisions, the final Customer Information Standards apply to independent mortgage lenders, brokers and servicers that are not affiliated with depository institutions, and require institutions to implement information security programs appropriate to their activities and operations and the sensitivity of the customer information in question. In a November 16, 2004 release, the FTC published information regarding the program it has started as a part of a nationwide compliance sweep, charging mortgage companies who have violated the "Safeguards Rule" for not having reasonable protections for customers' sensitive personal and financial information. Please review this release at www.ftc.gov/opa/2004/11/ns.htm.
In addition, in a release dated November 18, 2004, the FTC has issued final regulations regarding the proper disposal of consumer report information and records under the Fair and Accurate Credit Transactions Act of 2003 (FACTA) and the Fair Credit Reporting Act (FCRA). Please see the release at www.ftc.gov/opa/2004/11/factadisposal.htm.
You are encouraged to review these regulations. Please visit the FTCs website at www.ftc.gov for additional information regarding these actions taken, as well as an overview of the requirements of the law available at http://www.ftc.gov/bcp/conline/pubs/buspubs/safeguards.htm
OTHER REGULATORY ISSUES & INFORMATION
APPARENT FRAUDULENT USE OF LICENSE
It has been brought to the attention of the Department that a company which is not licensed by the Department using the name Cambridge Financials, appears to be using the license number of a Georgia Residential Mortgage Licensee on its website. The licensee was made aware of this by another state regulatory agency where a similar fraudulent use of the company's license in that state was being committed. There is no direct contact information for Cambridge Financials on their website. This information is being provided to make you aware of what may be a new scheme to circumvent state licensing laws to the detriment of legitimately licensed companies.

BRANCH INFORMATION
Licensee and Registrant additional offices (branches) are now listed on the Department's web site. After conducting an online search at http://www.ganet.org/dbf/mortgage.html, select "Approved Branch Offices" for a list of that licensee's/registrant's approved offices. Should you find any information that needs updating, please contact the Department at (770) 986-1136.
The Department strongly recommends that applicants for licensing, education provider approval and additional offices refrain from entering into any binding financial obligations until after written approval of any application submitted. The Department suggests that space lease or rental obligations entered into prior to Department approval be contingent upon Department approval. this might require the assistance of a qualified attorney.

REAL ESTATE BROKERS AND UNLAWFUL RESIDENTIAL MORTGAGE ACTIVITIES
Although a real estate broker may refer consumers to a mortgage broker or mortgage lender, Georgia law prohibits a real estate broker from accepting any fee or compensation in any form whatsoever for directly or indirectly negotiating, placing, or finding a mortgage for a Georgia consumer. O.C.G.A. 7-1-1001 (4). In order for a real estate broker to receive compensation legally for such services, that real estate broker must first obtain a mortgage broker or mortgage lender license or demonstrate that he, she, or it is exempt from GRMA's licensing requirements. Compensating a real estate broker for such services will subject a Georgia licensed mortgage broker or mortgage lender to revocation procedures as such conduct constitutes engaging in residential mortgage activities with an unlicensed person. O.C.G.A. 7-1-1002.

VERIFYING LICENSED ENTITIES
Rule 80-11-4-.05 of the Mortgage Division Rules states, in part, that it is the licensee's responsibility to "know" that it is conducting business with a licensed entity.
You run the risk of conducting business with an unlicensed entity if you do not verify the license. The fine for "dealing with unlicensed persons" under Rule 80-11-3-.01 (4) is $1,000 per transaction and your license shall be subject to suspension or revocation. Anyone who purchases, sells, places for processing or transfers a mortgage loan or loan application to or from a person who is required to be licensed but is not properly licensed will be fined. You can check the license status of any licensee by going to the Department's web site at http://www.ganet.org/dbf/mortgage.html. From there you can check by entering the licensee's name, license number, or city, or leave the selection box blank and you will get a complete listing of licensees. There is also an option to download the entire list into an Excel spreadsheet.

2005 HOLIDAY SCHEDULE
In accordance with O.C.G.A. 1-4-1, Governor Sonny Perdue proclaimed the following dates as public and legal holidays for the year 2005.

2005 HOLIDAY New Year's Day Martin Luther King, Jr.'s Birthday

DAY/DATE January 1 will be observed Monday, January 3 Monday, January 17

2005 HOLIDAY Robert E. Lee's Birthday
Washington's Birthday
Confederate Memorial Day Memorial Day Independence Day Labor Day Columbus Day Veterans' Day Thanksgiving Day (Alternate observance of Lee's Birthday) Christmas Day (Alternate observance of Christmas Day) (Alternative observance of Washington's Birthday)

DAY/DATE Monday, January 19 Will be observed on Friday, November 25 Tuesday, February 22 Will be observed on Tuesday, December 27 Monday, April 25 Monday, May 30 Monday, July 4 Monday, September 5 Monday, October 10 Friday, November 11 Thursday, November 24 Friday, November 25 Sunday, December 25 Monday, December 26 Tuesday, December 27

CEASE AND DESIST ORDERS - Issued
Arnold, Kimberlie aka Kimberlie Ford, Stone Mountain, GA - Cease and Desist Order issued October 20, 2004 and became final on November 20, 2004.
Cantrell, Angela C., Fort Myers, FL (license no. 18659) - Cease and Desist Order issued October 19, 2004 and became final on November 13, 2004.
Farrer, Julie M., Rome, GA (license no. 18094) - Cease and Desist Order issued October 19, 2004 and became final on November 12, 2004.
Figueroa, Maria Elena, Lawrenceville, GA - Cease and Desist Order issued October 19, 2004 and became final on November 19, 2004.
Figueroa, Raymondo, Lawrenceville, GA - Cease and Desist Order issued October 19, 2004 and became final on November 19, 2004.
Giuerrero, Guilliana C., Suwanee, GA - Cease and Desist Order issued October 19, 2004 and became final on November 19, 2004.
Higueros, Henry Rolando, Norcross, GA - Cease ad Desist Order issued October 19, 2004 and became final on November 19, 2004.
Johnson, Maria Gaby, Duluth, GA - Cease and Desist Order issued October 19, 2004 and became final on November 19, 2004.

Knox, Joyce E., Chamblee, GA (license no. 18612) - Cease and Desist Order issued October 19, 2004 and became final on November 21, 2004.
Malayery, Luz E., Decatur, GA (license no. 16640) - Cease and Desist Order issued October 19, 2004 and became final on November 21, 2004.
NLL Capital, LLC dba The Lynn Group Mortgage Company, Wauwatosa, WI (license no. 19197) - Cease and Desist Order issued October 18, 2004 and became final on November 18, 2004.
Noel, Donna, Lithonia, GA - Cease and Desist Order issued June 28, 2004 and became final on November 1, 2004.
Parent, Joel, Norcross, GA - Cease and Desist Order issued October 6, 2004 and became final on November 6, 2004.
Rice, Mark Raphael, Stone Mountain, GA - Cease and Desist Order issued November 4, 2004 and became final on November 24, 2004.
Rogers, Margarita aka Margarita A. Rogers-Barker, Ellenwood, GA - Cease and Desist Order issued October 21,2004 and became final November 21, 2004.
Ruddock, Margaret, Stone Mountain, GA (license no. 16617) - Cease and Desist Order issued October 27, 2004 and became final on November 25, 2004.
Rumsey, Paul W. Jr., Stone Mountain, GA (license no. 17564) - Cease and Desist Order issued October 19, 2004 and became final on November 12, 2004.
Sherrard, Kenneth, Lithonia, GA (license no. 13412) - Cease and Desist Order issued October 19, 2004 and became final on November 21, 2004.
Stegall, William S., Stone Mountain, GA (license no. 15277) - Cease and Desist Order issued October 19, 2004 and became final on November 21, 2004.
CEASE AND DESIST ORDERS - Lifted
None
FINE PUBLICATION
Information regarding fines assessed against a specific licensee and against whom there are no pending administrative actions, is available on an individual licensee basis by submitting a written request to the following e-mail address: dbfmort@dbf.state.ga.us

FINE REASON

6 Licensee fined for Prohibited Acts 6 Licensees fined for Advertising Violations 4 Licensees fined for Background Check Violations 5 Licensees fined for Books and Records 1 Licensee fined for employment of a Felon 2 Licensees fined for Loan Files not properly

1 Licensee fined for check returned for insufficient fund
1 Licensee fined for doing business with unlicensed entity
1 Licensee fined for 1099 Employees

LICENSEES/REGISTRANTS REVOKED, EXPIRED, SUSPENDED, WITHDRAWN OR DENIED IN NOVEMBER 2004

ID#
13361 13412 13947 15277 15610 16057 16083 16617 16640 17564 18075 18094 18447 18493 18612 18659 19197 19471 17568

NAME

CODE

MERITAGE MTG CORP

LD

SHERRARD, KENNETH

BD

GE CAP FINL INC

RD

STEGALL, WILLIAM S

BD

A-MINUS MTG CORP

LD

INTERMAX MTG LLC

BD

SIDUS FINL LLC

LD

RUDDOCK, MARGARET

BD

MALAYERY, LUZ

BD

RUMSEY, PAUL WENDELL JR BD

PINNACLE FINL SOLUTIONS I BD

FARRER, JULIE MELISSA

BD

OAKTREEE MTG GRP INC

BD

EQUIX FINL SVCS LLC

BD

KNOX, EMMA JOYCE

BD

CANTRELL, ANGELA CROZIER BD

NII CAP LLC

BD

EAGLE HM LOANS INC

BD

CONSUMER MTG FIN CORP INC BD

REVOKED

EXPIRED

SUSPENDED

11/21/2004 11/21/2004

11/25/2004 11/21/2004 11/12/2004
11/12/2004

11/01/2004

11/21/2004 11/13/2004 11/18/2004

WITHDRAWN
11/01/2004 11/02/2004 11/02/2004 11/02/2004 11/01/2004
11/12/2004 11/02/2004 11/02/2004
11/19/2004

DENIED

TOTAL: 19

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN NOVEMBER 2004

ID# COMPANY NAME

19658 19723 19725 19734 19737 19744 19746 19805 19809 19845 19847 19851 19721 19741 19799 19843 19846 19852 19222 19558 19608 19643 19694 19747 19789 19791 19814 19842 19856 19872 19880 19884 19887 19766 19901 19913 12926

LowerMyBills, Inc. Dream Home Mortgage Company Credit Financial Services, LLC Arlington Capital Mortgage Greeson Mortgage Company James Philip Leabo, Jr. Colonial One Mortgage, Inc. Fletch Funding, Inc. Homestead Mortgage, Inc. GreatHouse Mortgage, Inc. All Star Mortgage Financial Corp. Advanced Funding Services, Inc. Home Lenders of Georgia, LLC Georgia One Financial Mortgage, Bravo Credit Corporation Ace Mortgage Funding Incorporated America One Finance, Inc. Maitland Mortgage Lending Mortgage Factory, Inc. Jeremy D. McCluggage Peak Mortgage, Inc. Tonya M. Simmons PeachOne, Inc. Mortgage Research Center, LLC Acceptance Capital Mortgage American States Mortgage, Inc. Home America Lending Group, Inc. Easy Home Loans, LLC Ideal Mortgage, Ltd. (New York) Janice G. Inya-Agha Southern Equity Mortgage Services, Alliance First Mortgage, Inc. Village Capital & Investment, LLC One World International Financial Southern States Financial Services, Seminole Lending, Inc. Robert E. Frischkorn

CITY
SANTA MONICA ALPHARETTA MASON BENSALEM ROME SMYRNA ATLANTA SEATTLE LOGANVILLE KNOXVILLE MIAMI SUGAR HILL MARIETTA MARIETTA IRVINE INDIANAPOLIS MILL CREEK MAITLAND HOUSTON SUWANEE CARROLLTON DOUGLAS MARIETTA COLUMBIA SPOKANE ATLANTA LAWRENCEVILLE DULUTH MELVILLE NORCROSS CUMMING STONE MOUNTAIN ISELIN FAYETTEVILLE ATLANTA POWDER SPRINGS ALPHARETTA

ST MB CODE

CA B

GA B

OH L

PA L

GA B

GA B

GA B

WA B

GA B

TN B

FL L

GA B

GA B

GA B

CA L

IN

B

WA B

FL L

TX B

GA B

GA B

GA B

GA B

MO L

WA L

GA B

GA L

GA B

NY L

GA B

GA B

GA B

NJ L

GA B

GA B

GA B

GA B

ORIGINAL APPROVAL
11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/12/2004 11/12/2004 11/12/2004 11/12/2004 11/12/2004 11/12/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/26/2004 11/26/2004 11/26/2004 10/31/1997

RENEWAL
11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/05/2004 11/12/2004 11/12/2004 11/12/2004 11/12/2004 11/12/2004 11/12/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/19/2004 11/26/2004 11/26/2004 11/26/2004 11/12/2004

REINSTATED
11/12/2004

TOTAL: 37

B = BROKER L = LENDER R = REGISTRANT

* Upgrade Broker to Lender + Downgrade Lender to Broker # Upgrade Lender to Registrant Downgrade Registrant to