Monthly mortgage summary, Jan. 2009

NDFI

MONTHLY MORTGAGE SUMMARY

January 2009
Georgia Department of Banking & Finance-- Non Depository Financial Institutions Division Monthly MSuomntmhalyrySuomf mMaorrytgoafgMe oArcttgiavgietieAsctfiovrittiehse fPoerrtiohde EPnedriiondg EJannduinagryAp2r0i0l 92007

Inside this issue:

Page 1

NEWS

NATIONAL NEWS ITEMS

NEWS ITEMS

Mortgage Data Requirements

1

MORTGAGE DATA REQUIREMENTS

Supervisors (CSBS) and the FFIEC Appraisal Subcommittee. Within the next 30 days, both Fannie Mae and Freddie Mac will be issuing guidance
related to implementation of the requirement.

Appraiser Requirements

1

Renewals 3

Continuing Education 4

License Names 4

ADMINISTRATIVE ITEMS

Administrative 5Actions 6

Fines 6

Licenses Revoked, Expired...Denied

7

Licenses Approved & Reinstated

8

Contact Information

9

Useful Links MORTGAGE FORMS: DBF.GEORGIA.GOV/
DBFMTGFORMS
UPDATING LICENSE INFORMATION
DBF.GEORGIA.GOV/
DBFMTGFORMS
MORTGAGE SUMMARY DBF.GEORGIA.GOV/
DBFMTGSUMMARY

FEDERAL HOUSING FINANCE AGENCY
January 15, 2009
E ffective with mortgage applications taken on or after Jan. 1, 2010, Freddie Mac and Fannie Mae are required to obtain loan-level identifiers for the loan originator, loan origination company, field appraiser and supervisory appraiser.
A similar initiative had been worked on in prior years by both agencies in conjunction with the Mortgage Bankers Association of America and the National Association of Mortgage Brokers, however, without a national registration and
identification system, the efforts were unsuccessful.
With the enactment of the SAFE legislation and the establishment of a national registry of mortgage originators, the system of identifiers will be in place to establish this requirement. "This represents a major industry change. Requiring identifiers allows the Enterprises to identify loan originators and appraisers at the loan-level, and to monitor performance and trends of their loans," said FHFA Director Lockhart. "If originators or appraisers have contributed to the incidences of mortgage fraud, these identifiers allow the Enterprises to get to the root of the problem and address the issues."
The purpose of FHFA's requirement is to prevent fraud and predatory lending, to ensure mortgages owned and guaranteed by the Enterprises are originated by individuals who have complied with applicable licensing and education requirements under the S.A.F.E. Mortgage Licensing Act, and to restore confidence and transparency in the credit markets. In addition, the Enterprises will use the data collected to identify, measure, monitor and control risks associated with originators' and appraisers' performance, negligence and fraud.
To implement the requirement, FHFA has been working with the Conference of State Bank

Additional information and links to the letters sent to the GSE's can be found on the following links.
Letter to Fannie Mae
Letter to Freddie Mac
H.R. 3221, Title V, the S.A.F.E. Mortgage Licensing Act
National Mortgage Licensing System (NMLS)
Conference of State Bank Supervisors (CSBS)
REVISED ELIGIBILITY REQUIREMENTS
FHA Roster Appraisers
MORTGAGEE LETTER 2008-39
HUD--December 17, 2008
T he Housing and Economic Recovery Act of 2008 (HERA) amended the qualification standards for Federal Housing Administration (FHA) approved appraisers. Mortgagee letter 2008-39 sets forth the revised eligibility requirements for appraisers to qualify for placement and retention on the FHA Appraiser Roster and provides the timeline for implementation of those requirements.
Section 202(f) of the National Housing Act mandates that all appraisers chosen or approved to conduct appraisals of properties that will be security for FHA-insured mortgages must: (1) be "certified" by the State in which the property to be appraised is located; or by a nationally recognized professional appraisal organization, and (2) have demonstrated
("Appraisers"--Continued on page 2)

Page 2

January 2009

National News Items

("Appraisers"--Continued from page 1)
verifiable education in the appraisal requirements established by FHA. (the term "state" in the Mortgagee Letter includes U.S. Territories.)
Although Section 202(f) of the National Housing Act was made effective upon enactment, FHA has determined that the loss of available FHA Roster appraisers in certain locations will impede its ability to support affordable mortgage financing in those areas, which would contravene the goals of the HOPE for Homeowners Program and hinder use of other FHA single family programs at a time when use of those programs has increased significantly. Therefore, in order to implement this change in appraiser eligibility requirements in a manner that is not disruptive to the FHA mortgage lending process, the requirement will be phased in as follows:
Effective October 1, 2008, FHA stopped accepting applications to the FHA Appraiser Roster from licensed but uncertified appraisers. All applicants for the FHA Appraiser Roster must be state certified (certified residential or certified general) appraisers who meet the minimum certification criteria issued by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation. The requirements that applicants not be listed on the General Service Administration (GSA) Excluded Parties List System (EPLS), HUD's Limited Denial of Participation List (LDP), or HUD's Credit Alert Interactive Voice Response System (CAIVRS) remain unchanged.
No Later than October 1, 2009, all FHA Appraiser Roster appraisers in all states and territories must be state certified in order to be eligible to conduct appraisals for FHAinsured mortgages and remain on the FHA Appraiser Roster.
FHA MORTGAGEE INSTRUCTIONS
Commencing October 1, 2009, all FHA-approved lenders must use state certified appraisers for FHA-insured mortgages. The appraiser assignment field within the Case Number Assignment screen in FHA Connection must be input with an appraiser who is listed as either certified residential or certified general on the FHA Roster for the state in which the property is located. If, on or after October 1, 2009, an FHA-approved lender enters an appraisal assignment into FHA Connection for a property from a FHA Roster Appraiser who is licensed but not certified in accordance with this Mortgagee Letter, the appraisal will be unacceptable for FHA-insured financing and a second appraisal, performed by a state certified appraiser, must be completed at the lender's expense.

When appraisal assignments (case # assignments) are given to licensed appraisers prior to October 1, 2009, but the appraisal is not completed until after that date, the appraisal will be acceptable. However, the lender must assure that the appraisal assignment date is entered accurately into FHA Connection which must be a date prior to October 1, 2009. In these cases, the appraisal assignment must be submitted to the lender no later than October 30, 2009.
Appraisals that were completed by licensed appraisers prior to the deadline, which are transferred to a new lender, may be used as long as the original assignment date occurred prior to October 1, 2009.
ADDITIONAL INFORMATION - CERTIFICATION AND EDUCATION OF APPRAISERS
Currently, FHA allows both licensed and certified appraisers to conduct appraisals for FHA-insured mortgages as long as they qualify under the minimum criteria issued by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation as authorized under the provisions of Title XI of the Financial Institutions, Reform, Recovery and Enforcement Act of 1989 (FIRREA). (See the FHA Appraiser Roster regulations at 24 CFR 200.202.) Under FIRREA, the AQB establishes the minimum education, experience and examination requirements for real property appraisers to obtain a state certification. In addition, the AQB performs a number of ancillary duties related to real property and personal property appraiser qualifications
To meet the new eligibility requirement, FHA appraisers must be certified by the state in which the property to be appraised is located, or by a nationally recognized professional organization. Under new section 202(f) of the National Housing Act, licensed appraisers would no longer be authorized to conduct appraisals of properties securing an FHA-insured mortgage.
Through FIRREA, Congress authorized the Appraisal Foundation to establish minimum qualification requirements for state certification of appraisers as well as promote minimum uniform appraisal standards. The Appraisal Foundation serves as the parent organization to AQB and the Appraisal Standards Board (ASB) to accomplish this mission. The AQB promulgates and maintains appraiser qualification criteria and the ASB promulgates and maintains the Uniform Standards of Professional Appraisal Practice (USPAP). The FHA Appraiser Roster regulations acknowledge this national role by requiring that appraisers
( "Appraisers"--Continued on page 3)

January 2009

Page 3

State & National News Items

("Appraisals"--Continued from page 2)
applying for placement on the roster meet the minimum AQB education, examination, and training criteria. Given these unique responsibilities, FHA has determined that the Appraisal Foundation is a "nationally recognized professional appraisal organization" within the meaning of new section 202(f) of the National Housing Act. Moreover, FHA has determined that appraisers meeting the AQB criteria, as required by the FHA Appraiser Roster regulations, have "demonstrated verifiable education in the appraisal requirements established by FHA" under the new law.
FHA recognizes that there may be other national professional organizations that satisfy the requirements of section 202(f), and that there may be additional means of demonstrating verifiable education in FHA appraisal requirements. HUD will publish a notice in the Federal Register inviting the public to comment on nationally recognized professional appraisal organizations that FHA should consider as meeting the new statutory requirements.
Appraiser Qualification Criteria Appraisers seeking to become state certified should review the 2008 Real Property Appraiser Qualification Criteria at: http://www.appraisalfoundation.org
Procedures to Obtain Placement on the FHA Appraiser Roster Applicants who meet all eligibility criteria may apply on-line at: http://www.hud.gov/appraisers
Mortgagee Letter 2008-39 may be found at: http:// www.hud.gov/offices/adm/hudclips/letters/mortgagee/ files/08-39ml.doc
GEORGIA NEWS Renewals & NMLS Transition Plan
Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E.)
Many thanks to those of you who have begun the transition to NMLS. This is a learning experience for licensees as well as the Department, and while there are many questions, so far the experiences have been positive.
Reminder--Each company holding a Georgia mortgage lender or broker/processor license or registration must create a company record (Form MU1) in NMLS for themselves and a record for each approved in-state Georgia branch (Form MU3), and

electronically submit those to the Department between January 2, 2009 and April 1, 2009 to renew and transition their license with no penalty. Beginning April 2, 2009 and through to June 30, 2009 you may renew and transition but the late renewal fee of $300 will be assessed. Failure to renew and transition by the June 30, 2009 expiration of your current license or registration will require a new or reinstatement application in Georgia submitted through the NMLS.
Completing and submitting this transition record through NMLS will also be the submission of your application for the Department's license and registration renewals for a half year licensing period. A copy of Department's transition plan can be found on the NMLS website at: www.stateregulatoryregistry.org/NMLS. In addition, the following applications previously submitted to the Department must now be submitted through the NMLS:
Branch - New BRANCH Application Branch - New MANAGER Application Change in Business Structure/Name Change in Control Change in Management Registration of a d/b/a Name Also, the following miscellaneous record changes previously made through the Department's website must now be completed through the NMLS:
Main Office Relocation/Address Change Branch Office Relocation/Address Mailing Address Changes Office Closure Contact Changes: Company, Complaint, Registered
Agent , and other miscellaneous changes.
Any of the foregoing applications or changes in information after transition must be submitted as an amendment filing through the NMLS.
Please note that there is a checklist of required items that must be submitted or completed outside of the NMLS on-line at the Department's website in order to approve your renewal/transition. Unless hardcopy of a response or item is required, the information can be entered on-line. Your ID and password for Department access to report the DBF online items are required. Bond or Letter of Credit: One of these items, as
applicable to your circumstance, must be on file and current. Submission required ONLY if not on-file and current.
Fines: All outstanding fines must be paid. Unpaid fines, are payable on-line and are charged to your credit card or drafted from your bank account, depending upon your payment type. Website: https://bkgfin.dbf.state.ga.us/ MortgageDocs/MtgFinePay.html

Page 4

January 2009

State News Items

$6.50 per loan fees: All per loan fees must be paid. Payments can be made on-line. Available January 2009.
Website: https://bkgfin.dbf.state.ga.us/GRMAFee.html

2009 CONTINUING EDUCATION

Continuing Education (CE) Brokers/Processors *ONLY*: 12 CE hours are required to renew.
**CE requirement information is available on the internet at: http://dbf.georgia.gov/dbfmtgforms
Post CE info at Website: https://bkgfin.dbf.state.ga.us/ MortgageDocs/MortgageRenewal.html . Available January 2009.
Annual Questionnaire: Calendar year 2008 operating and disclosure data must be completed. .
Post at Website: https://bkgfin.dbf.state.ga.us/ MortgageDocs/MortgageRenewal.html Available January 2009.
Failure to complete these requirements will result in a delay in the issuance of your renewal license/registration until the deficiencies are corrected.
How to Access NMLS
DBF Website Complete information and instructions from the Department's perspective regarding renewals, transition and access to NMLS can be found at: http://dbf.georgia.gov/00/ channel_title/0,2094,43414745_46296143,00.html.

In conjunction with the interim licensing period in place to convert to a calendar year licensing period, the Department will not be requiring that brokers obtain any additional continuing education credits in order to file for their 2010 calendar year License. That calendar year license filing will be November 1, 2009 through December 31, 2009. That filing must be made through the NMLS, however a late filing fee of $300 will be assessed on December 1. Continuing Education credits will NOT be required for that renewal filing.
Beginning with the renewal period for the 2011 Calendar Year license, licensees will be required to obtain 12 hours of continuing education credits. For that period ONLY, credits obtained from April 1, 2009 to October 31, 2010 can be used to qualify for renewal. After the 2011 renewal period (filings made November 1 to December 31, 2010), all continuing education credits must be obtained between November 1st thru the following October 31st in order to qualify for the 2012 and future licenses.
LICENSE NAMES

NMLS Website Additional instructions and guides regarding use of the system and transitioning of licenses to the Nationwide Mortgage Licensing System is online at: www.stateregulatoryregistry.org/NMLS.
Correspondence regarding renewals/transition filing requirements will be sent to licensees through NMLS.
LICENSE REINSTATEMENTS License reinstatements are not permitted through the system. Should your license expire and you wish to have the same number reinstated, this will be treated as a new application which must be made through the system and at submission, send a cover letter with your checklist items to the Department indicating the license number that you wish to reinstate. This, if approved, will be the license number assigned to your Georgia record at NMLS.

If you are seeking a Georgia license or registration or already
have a license or registration as an incorporated entity, limited liability company, a partnership, or even a sole proprietor, please be aware that the terms "Bank", "Banc", "Bancorp", or "Trust" or other similar forms of these words cannot be used in your name, your d/b/a name, OR YOUR ADVERTISING. The term "Federal" cannot be used pursuant to Federal law, and the term "National" cannot be used in these instances without the permission of the Office of the Comptroller of the Currency, which will not be granted unless a national bank is involved.
It has been noted that some licensees (not bank chartered entities) who market to foreign (non-English speaking) affinity groups often use the words "bank" or "bancorp" in their advertisements in a particular foreign language. Such use is not permitted, be it in English or in a foreign language, as it purports a legal status that does not exist for that entity in this state.

Use of the aforementioned terminology in advertisements or as website URLs (d/b/a's) by licensees will result in advertising fines and if continued, may result in formal administrative action taken against the company.

January 2009

Page 5

SPEAKING ENGAGEMENTS--NDFI
Deputy Commissioner Rod Carnes will be speaking to the Mortgage Brokers Association regarding updates to the "Laws &
Rules" on February 12, 2009. Location to be announced. Please contact the Mortgage Broker's Association at 770/9935507.
Commissioner Rob Braswell and Deputy Commissioner for Non-Depository Financial Institutions Rod Carnes will be speaking
to the Mortgage Bankers at the State Capitol on February 17th at 8:00 a.m.
Director for Mortgage Supervision Sandra Sheley will be speaking at the Georgia Real Es-
tate Fraud Prevention and Awareness Coalition's (GREFPAC) 5th Annual Education Conference to be held Cobb Galleria, Two Galleria Parkway, Atlanta, GA on Friday, February 20 from 8:30am to 4:30 pm.

Administrative Actions
FINAL CEASE AND DESIST ORDERS
Investment International, Inc., Norcross, GA (license no, 22085) Cease and Desist Order issued December 18, 2008 became final on January 17, 2009.
MCM Mortgage, LLC, Doraville, GA (license no. 19368) Cease and Desist Order issued December 4, 2008 became final on January 4, 2009.
Milestone Finance, LLC, Riverdale, GA (license no. 22263) Cease and Desist Order issued December 18, 2008 became final on January 18, 2009.
South Fulton Mortgage Company, Inc., East Point, GA (license no. 21886) Cease and Desist Order issued December 18, 2008 became final on January 19, 2009.
Tradewind Mortgage, LLC, Duluth, GA (license no. 16099) Cease and Desist Order issued December 2, 2008 became final on January 3, 2009.
Waller, Jeremy M. dba Maximum One Mortgage, Cease and Desist Order issued November 25, 2008 became final on January 7, 2009.
Westland Funding Group, Inc, Stuart, FL (license no. 22169) Cease and Desist Order issued December 30, 2008 became final on January 29, 2009.

Page 6
Administrative Actions

January 2009

CEASE AND DESIST ORDERS--LIFTED, RESCINED, WITHDRAWN
Brookwood Mortgage Funding Corp., Atlanta, GA (license no. 6526) Cease and Desist Order issued May 29, 2008 was rescinded on January 2, 2009.
Jones Mobile Home Sales, Inc., Bainbridge, GA (license no. 7377) Cease and Desist Order issued October 31, 2008 was rescinded on January 7, 2009.
The Mortgage Experts of South Florida, Miami Gardens, FL (license no. 21704) Cease and Desist Order issued July 15, 2008 was rescinded on January 23, 2009.
Simons & Leoni Home Loans, LLC dba SLHomeLoans, Tampa, FL (license no. 21371) Cease and Desist Order issued March 27, 2008 was rescinded on January 2, 2009.

FINAL CONSENT ORDERS
None

SUPERIOR COURT INJUCTIONS--ISSUED
None
FINE INFORMATION
Information regarding fines assessed against a specific licensee, 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

1 Licensee fined for Advertising Violations

1 Licensee fined for Employment of a Felon

3 Licensees fined for Background Checks Violations

2 Licensees fined for Loans Files not properly maintained

2 Licensees fined for Books & Records

2 Licensees fined for Prohibited Act

1 Licensee fined for Failure to submit Exam

January 2009
Administrative Actions

Page 7

LICENSEES/REGISTRANTS REVOKED, EXPIRED, SURRENDERED, WITHDRAWN OR DENIED

IN JANUARY 2009

ID# COMPANY NAME 14546 APEX MTG GRP INC

CODE BD

REVOKED

EXPIRED

SURRENDER

WITHDRAWN 01-16-2009

DENIED

15099 BROOKFIELD MTG CORP

BD

01-12-2009

15658 IMPAC LENDING GRP

LD

01-27-2009

16099 TRADEWIND MTG LLC

BD

01-03-2009

18539 ULTIMATE MTG SVCS INC

BD

18989 LIFESTYLES MTG HOLDINGS

BD

19101 FOUNDATION FINL GRP LLC

LD

19305 ORIGEN SVCG INC

LD

19368 MCM MTG LLC

BD

01-04-2009

01-19-2009 01-05-2009 01-16-2009 01-08-2009

20053 A&C MTG LLC

BD

01-28-2009

20807 TC FINL MTG LLC

BD

01-08-2009

20853 AMEN MTG INC

BD

01-13-2009

20913 MBS INTL CORP

BD

21086 METAMERICA MTG LENDERS

LD

21165 FAIRFIELD FINL MTG GRP

LD

01-30-2009 01-22-2009 01-05-2009

21366 LANIER LENDING LLC

BD

01-13-2009

21392 PREMIER FIRST FINL LLC

BD

01-23-2009

21500 OMEGA MTG CORP

LD

01-27-2009

21886 S FULTON MTG CO INC

BD

21989 TRINITY FREEDOM MTG INC

BD

22085 INVESTMENT INTL INC

BD

22169 WESTLAND FUNDING GRP INC

BD

22263 MILESTONE FIN LLC

BD

01-19-2009
01-17-2009 01-29-2009 01-18-2009

01-28-2009

22486 SLOAN MTG GRP INC

LD

22606 BAYVIEW FIRST FUNDING LLC

LD

22652 VERIZON FINL LLC

BD

01-09-2009 01-22-2009 01-05-2009

22817 VHS FINL INV INC

BD

01-08-2009

23463 LADY MACBETH GA LLC

BD

01-15-2009

TOTAL: 28

Page 8
Administrative Actions

January 2009

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN JANUARY 2009

ID#

COMPANY NAME

16059 22529
23660

First Start Mortgage Corporation +
America's First Mortgage Lending
Company +
Brian A. Cole & Associates, Ltd.

23752 Rosa Martinez

23714 King Hoe Tan

23758 Deandre Bernard Mathis

23712 23812
6391 23793 23808

Home Mortgage Network of America, Inc. Community Home Financial Services Inc.
Peach State Mortgage Corp. +
OPTIMUM Consumer Services, Inc. The Mortgage Company

6526 21371

Brookwood Mortgage Funding Corp. Simons & Leoni Home Loans, LLC

19323 Amy G. Creer

19222 Mortgage Factory, Inc.

21704 The Mortgage Experts of South Florida, Inc.
14233 All-N-One Mortgage & Financial, Inc.
TOTAL: 17

CITY
Decatur Albany
Lakewood Buford Atlanta Duluth Deerfield Beach Jackson
Cartersville Duluth
Centennial Atlanta
Tampa Conyers Houston Miami Gardens Decatur

ST MB CD

GA

B

GA

B

OH

B

GA

B

GA

B

GA

B

FL

B

MS

B

GA

B

GA

B

CO

L

GA

B

FL

B

GA

B

TX

L

FL

L

GA

B

ORIGINAL APPROVAL 12-29-2000 06-01-2007
01-09-2009 01-09-2009 01-16-2009 01-16-2009 01-23-2009
01-23-2009
06-28-1993 01-30-2009
01-30-2009 07-20-1993
05-12-2006 06-04-2004 11-19-2004 08-25-2006
01-15-1999

RENEWAL 01-02-2009 01-09-2009

REIN-STATED

01-09-2009 01-09-2009 01-16-2009 01-16-2009 01-23-2009
01-23-2009
01-30-2009 01-30-2009
01-30-2009 01-02-2009
01-02-2009 01-09-2009 01-16-2009 01-23-2009
01-30-2009

01-02-2009
01-02-2009 01-09-2009 01-16-2009 01-23-2009
01-30-2009

January 2009

Page 9

Georgia Department of Banking and Finance
2990 Brandywine Road Suite 200
Atlanta, Georgia 30341-5565
Phone: (770) 986-1136 Fax: (770) 986-1654 or 1655
Email: dbfmort@dbf.state.ga.us

LICENSE STATUS CHANJGuEdINgDmICeAnTtO/CRSla&imMONRoTtGiAfiGcEatLiIoCnENSE CODES--(In Tables)

As a reminder to licensees during the renewal period, O.C.G.A. 7-1-1007 requires reporting to the Department on certain actions brought against licensees, and states the following:

"(a) A licLeincseeenssheaSlltgaivteusnoInticdeictoattohersdepartment by r(eMgBistCerDed) o-rMcoerrttifgieadgemaLilicoer nstsaetuCtoordy eosver-

night delivery of any action which may be brought against it by any creditor or borrower where such

action is brought under this article, involves a claim against the bond filed with the department for the purp*oses of cUopmgprliaadneceBwroithkeCrotdoe LSeecntdioenr 7-1-1003 or 7-B1-1004, or involves a clBarimokfoerrdamages in excess of $25,000.00 for a broker and $250,000.00 for a lender and of any judgment which may be

entered against it by any creditor or any borrower or prospective borrower, with details sufficient to

identify the action or judgment, within 30 days after the commencement of any such action or the

entry+of any sDucohwjundggrmadeentL. "ender to Broker

L

Lender

The Department often obtains information regarding judgments and claims from public sources or other regulators, not from the licensee. It is important to remember that such notification to the Depa#rtment bUyptghreadliceeLnseenediesrretoquRireegdisbtyralanwt, and any lPicensee subject to suPchrocclaeimssoorrjudgment must report details to the Department according to the law as noted above.

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