Monthly mortgage summary, Feb. 2009

NDFI

MONTHLY MORTGAGE SUMMARY

February 2009
Georgia Department of Banking & Finance-- Non Depository Financial Institutions Division Monthly MSuomntmhalyrySuomf MmoarrtygoafgeMoArcttgiavgiteieAsctfiovrittihees fPoerritohde EPnedriiondg FEenbdrinugarAyp2r0il092007

Inside this issue:

Page 1

NEWS

STATE NEWS ITEMS

STATE/NATIONAL

Loan Modifications 1

"GAPS" Fingerprint

2

Mortgage SARS 3

Examiners' Award 4

2009 FHA Limits 4

Customer Service Stars

5

ADMINISTRATIVE ITEMS

Administrative 6Actions 7

Fines 7

Licenses Revoked, Expired...Denied

8

Licenses Approved & Reinstated

9

Contact Information

10

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

LOAN MODIFICATIONS LICENSE REQUIRED

Therefore, unless a person is otherwise exempt from licensing under the Act, a license or registration would be required in order to provide mortgage loan modification services.

The overall economy, its impact on the homeowner/ mortgagor and efforts by Congress to provide foreclosure relief through legislation has offered a expanding revenue avenue--loan modification services. Nationwide this has become what can be seen as a lucrative endeavor, as it has become apparent that many persons, many new to the mortgage industry, have seen the opportunity to work with homeowners to help them modify their existing loans. The Department has received numerous inquiries regarding the need for these loan modification services to have a Georgia mortgage broker's or lender's license, and the answer is YES, unless otherwise exempted from licensing.
Pursuant to a review of the legal definitions and requirements within the Georgia Residential Mortgage Act ("Act"), it would appear all loan modification services/activities fall under the requirements covered by the statute, particularly by looking closely at the definitions of a "mortgage loan" and "mortgage broker", as noted below:
The mortgage loan definition includes within its meaning a loan or agreement to extend credit.......
Loan modifications generally involve a change in the existing loan agreement such as the interest rate, number of months, or some type of a forbearance agreement, or possibly a new loan and therefore it meets the aforementioned definition of mortgage loan; and/or

Licensees need to be aware of this requirement when participating in the loan modification process on behalf of consumers. Check the Department's website to make certain the parties to the process are licensed, or call to inquire. Searches are available at: https://dbfweb.dbf.state.ga.us/ WebMBData.html.
Should you be aware of persons providing loan modification services and you are concerned that they do not hold a valid license or exemption, information regarding these activities may be sent to the Department and we will review the information and take any appropriate administrative action based on the information provided.
Often services are offered and upfront fees are taken but there is no loan application or modification/ amendment documentation taken. If the services performed and fees taken are by an entity that is not a licensee, such action does not fall under the Department's jurisdiction, but rather the Governor's Office of Consumer Affairs and/or The Federal Trade Commission. An example of this would be individuals paying up-front fees for foreclosure rescue, no mortgage loan documentation regarding the transaction is made, and essentially no services are received.

A mortgage broker includes any "person who directly or indirectly solicits, processes, places, or negotiates mortgage loans....."

Any person who solicits, processes, places, or negotiates a mortgage loan or agreement would meet the definition of a mortgage broker, and
therefore would require a license.

Page 2

February 2009

State News Items

"GAPS"
New Fingerprinting Process
in Georgia he Georgia Bureau of Investigation, through Cogent
T Systems, is now providing electronic fingerprint submission services for mortgage licensing and employment purposes under GRMA located in or near the State of Georgia. The new service, Georgia Applicant Processing Services ("GAPS"), decreases the need for agencies/businesses to submit hardcopy fingerprint cards and provides the ability for applicants to have fingerprint backgrounds checks processed electronically in a non- criminal justice environment.
GAPS provides fixed office locations throughout the state so that Georgia residents will not have to travel more than 25 miles to a GAPS office. Print Locations are available on the web. Search results of the fingerprint background check should be available for agency retrieval from the GAPS website within 24 to 48 hours after the applicant is fingerprinted and the transaction submitted to GCIC for processing.
Electronic submission of fingerprint images will involve the use of a Cogent Livescan machine. The Livescan is essentially a sophisticated scanner/personal computer that captures fingerprint images and demographic data and submits this information to GBI. GBI conducts a search of its criminal history records using the fingerprint images and, for the Department, these images are forwarded to the FBI where a Federal Criminal History Record search is also conducted. Notifications of the search results are forwarded from the GBI/FBI to Cogent Systems which electronically disseminates the search results to the Department.
Review of Outsourcing Criminal History Processing/Fees
For additional information regarding the history of outsourcing criminal history processing, please visit: https:// www.ga.cogentid.com/GA_DOCS_html/ Outsourcing_Narrative_09102007.htm. This document also discusses security and privacy of the system.
Fee information for processing is available at https:// www.ga.cogentid.com/GA_DOCS_html/ GA_Fees_10012007.htm.
The processing fee for mortgage licensing requests is $32.15. The fee is payable by the applicant at the GAPS Print Location. Only credit cards and money orders are accepted for payment.

Georgia Criminal History Record Information Obtained For Employment by Licensees
Georgia criminal history record information (background checks) as required under GRMA by licensees on their employees, based on a search of name and descriptive data only, is still obtainable from local law enforcement agencies providing this service. A background check authorization form is available on the Department's website. Please contact local law enforcement agencies directly for information on agency specific requirements and fees. Background Check results that indicate the data is incomplete or which indicate the individual is a multi-source offender require the employer to submit fingerprint cards on that employee to the Department for further investigation. Georgia licensees with access to GAPS locations should follow these procedures for obtaining fingerprint card results through GAPS on its employees if required.
General Instructions
Instructions and forms are available on the DBF website. Please follow those instructions to provide fingerprint card/criminal history GAPS search information to the Department or to request cards, depending upon your circumstances. The Department will enter the required GAPS transaction information. Card requests should still be submitted on-line. Submit information by: Fax to (770) 986-1029 or scanned by E-mail to dbfmort@dbf.state.ga.us:
Personal identifying information is submitted to the
Department using an Applicant Registration Form.
Submit GAPS Waiver/Acknowledgement Form to the
Department using an Acknowledgement Form.
Fax or scan and e-mail both documents to the
Department as noted above.
The Department will enter the registration information
online and send you a Registration ID Number.
Applicant then contacts a GAPS Print Location to make
an appointment or verify hours of operation.
Requirements for completing prints at the chosen GAPS
location are: payment (credit card or money order ONLY payable to Cogent Systems GAPS), photo ID, and Department supplied Registration ID Number.
Once prints are taken, the Department will receive the
results. Please e-mail dbfmort@dbf.state.ga.us to let us know the process has been completed and to expect the results.

February 2009

Page 3

National News Items

FinCEN Mortgage Fraud Report
Growth in Mortgage Repurchases Increases Fraud Detection
T he Financial Crimes Enforcement Network (FinCEN) released its latest mortgage fraud analysis on February 25, 2009 - titled Filing Trends in Mortgage Loan Fraud - that shows suspicious activity reports (SARs) filed on suspected mortgage fraud increased 44 percent in the 12 months ending in June 2008 compared with the prior year.
"The continued rate of growth in mortgage fraud SAR filings underscores the increased vigilance and awareness of financial institutions, particularly as they continue to try to mitigate possible credit losses," said FinCEN Director James H. Freis, Jr. "For instance, one of the trends FinCEN spotted in this latest round of analysis is the increase in mortgage fraud detection in connection with mortgage purchasers sending home loans back to originators for repurchase." Filing institutions referenced repurchase demands in 8 percent of filings.
Overall, from July 1, 2007 through June 30, 2008, the 12-month period examined for this analysis, financial institutions filed 62,084 depository institution SARs reporting mortgage loan fraud, up 44 percent from 43,054 reported from July 1, 2006 through June 30, 2007. The 62,084 figure represents 9 percent of all depository institution SARs filed during the period.
In addition to suspicion triggered in connection with repurchase demands, there were other trends in the growth in suspected mortgage fraud. Filing institutions referenced foreclosures in 13 percent of their SAR filings, insurers in 8 percent and early default payments in 2 percent of filings as indications of suspected fraud. These patterns of filings generally involved the detection of suspected fraud after the mortgage had been granted. That notwithstanding, there also was an

increase in the percentage of SARs filed prior to granting the loan (34% as compared to 31% in the prior one-year period, which, as highlighted in FinCEN's April 2008 report, was an increase from 21% over the preceding decade). The overall SAR filing trend does not necessarily reflect fraudulent activity on current mortgage originations.
FinCEN has issued three public mortgage fraud reports - part of a series released since 2006 -based upon an analysis of SAR filings by depository institutions where mortgage loan fraud is specifically indicated. For the second consecutive year, mortgage loan fraud was the third most reported SAR activity during the reporting period behind the general Bank Secrecy Act/structuring/Anti Money Laundering (BSA/AML) category, and check fraud. Nearly 900 filing institutions submitted SARs reporting mortgage loan fraud SARs over the most recent 12-month period studied.
In 2009, FinCEN is conducting additional analyses to examine the relationship between mortgage loan fraud and other financial fraud, and will further explore reported activities, locations, and subjects. In this context, FinCEN will further examine identity theft, international connections, and mortgagerelated activities found in other BSA reports.
Background
Suspicious Activity Reports filed with FinCEN by depository institutions are a critical source of information for law enforcement in investigating and prosecuting mortgage fraud related crimes. In addition to its published analytical reports, FinCEN provides technical expertise and both strategic and tactical support to the law enforcement and financial regulatory communities at the Federal and State levels to investigate and prosecute mortgage fraud and to protect the financial industry and its customers.

Page 4

February 2009

State/National News Items
EXAMINERS AWARDED

The Mortgage Examiners Group was presented the "Outstanding Regulatory Unit Award" at the 2009 Georgia Real Estate Fraud Prevention and Awareness Coalition's 2009 Annual Conference. The award was presented in recognition of the Examiners' efforts in investigating and documenting mortgage fraud.

(The Georgia Real Estate Fraud

Prevention and Awareness

Coalition (GREFPAC) is

comprised of concerned

individuals and professionals

from all aspects of the real

estate industry, working

together with federal, state

and local regulators and law

enforcement agencies, to create Left to right: Phillip Valenzuela, Sandra Sheley, Andy Reid, Diane Hester, Rhonda

environments that promote honesty, openness & fairness in

Sampson, Betty Thomas, Bob Bauguss, Amanda

Turner, Fernando Ornelas

real estate transactions.)

HUD Issues 2009 FHA Loan Limits

The FHA national floor limits remain set at 65 % as follows:

The Department of Housing and Urban Development issued

Mortgagee Letter 2009-07 announcing the 2009 FHA single- family loan limits based on the American Recovery and Reinvestment Act ("ARRA") this week. The loan limits will remain in

effect until December 31, 2009.



One-Unit $271,050 Two-Unit $347,000 Three-Unit $419,400 Four-Unit $521,250

Under ARRA, the revised FHA loan limits for 2009 will be set The FHA national ceiling limits are as follows:

at the higher of the loan limits established for 2008 under the Economic Stimulus Act of 2008 (ESA) or those established for 2009 under the Housing and Economic Recovery Act of

One-Unit $729,750 Two-Unit $934,200

2008 (HERA).

Three-Unit $1,129,250

A copy of Mortgagee Letter 2009-07 includes special excep- Four-Unit $1,403,400

tions for Alaska, Hawaii, Guam, and Virgin Islands, as well Schedules of FHA mortgage limits for all areas, for for-

as Home Equity Conversion Mortgages.

ward loans and reverse mortgages, are available at

https://entp.hud.gov/idapp/html/hicostlook.cfm.

February 2009 February 2009

Page 5

State & National News Items

DBF's Customer Service Star

It is the Department's goal to provide excellent customer service, meeting and exceeding the expectations of our customers. Along those lines, we would like to recognize the following individuals or groups for going above and beyond in serving our customers:

Applications Analyst Irene Harper (NDFI-Mortgage): The Department received comments from three customers regarding Irene stating: "Although the application process was lengthy, as we were caught in the middle of Georgia switching to the NMLS system, the assistance we received from Irene Harper was EXCELLENT, she was very helpful and informative. She is the reason we rated this experience so high," and "The person I was dealing with, Irene Harper, was knowledgeable and courteous," and "Great communication. Ms. Harper was a joy to work with."
The Department is the state agency that regulates and examines banks, credit unions, and trust companies chartered by the State. The Department also has regulatory and/or licensing authority over mortgage brokers, lenders, and processors, money service businesses, international banking organizations, and bank holding companies conducting business in Georgia.
Our MISSION is to promote safe, sound, competitive financial services in Georgia through innovative, responsive regulation and supervision.
Our VISION is to be the best financial services industry regulator in the country Progressive. Proactive. Service-Oriented.
CONGRATULATIONS AND GREAT JOB TO THIS MONTH'S CUSTOMER SERVICE STAR!!

Page 6

February 2009

Administrative Actions

CEASE AND DESIST ORDERS WHICH BECAME FINAL

Abbey Investments, LLC dba Homebuyers Mortgage, Lilburn, GA (license no, 21208)
Cease and Desist Order issued January 27, 2009 became final on February 26, 2009.
Advanced Process Solutions, LLC, Canton, GA (license no. 23384) Cease and Desist Order
issued January 5, 2009 became final on February 4, 2009.
Empowerment Home Lending, Inc., Woodstock, GA (license no. 20846) Cease and Desist
Order issued January 26, 2009 became final on February 25, 2009.
H & H Funding Group, LLC, Atlanta, GA (license no. 23204) Cease and Desist Order issued
December 29, 2008 became final on February 1, 2009.
Howard, Demetrius Cease and Desist Order issued February 4, 2009 became final on Febru-
ary 25, 2009.
Lee Financial Corporation, Charleston, SC (license no. 18073) Cease and Desist Order is-
sued January 13, 2008 became final on February 12, 2009.
Liberty One Lending Incorporation, Goodyear, AZ (license no. 22459) Cease and Desist
Order issued January 16, 2009 became final on February 16, 2009.
Madison Mortgage Corporation, Smyrna, GA (license no. 16907) Cease and Desist Order
issued January 16, 2009 became final on February 18, 2009.
Maultsby, Jennifer Cease and Desist Order issued February 4, 2009 became final on February
25, 2009.
Mavroulis, Stilianos "Stan", Baltimore, MD Cease and Desist Order issued January 20, 2009
became final on February 10, 2009.
Marvroulis, Vasilios "Bill", Baltimore, MD Cease and Desist Order issued January 20, 2009
became final on February 10, 2009.
Mize, Jason, Tampa, FL Cease and Desist Order issued January 21, 2009 became final on
February 11, 2009.
Mortgage Lending Solutions, LLC (FL), Delray Beach, FL (license no. 23286) Cease and
Desist Order issued January 26, 2009 became final on February 25, 2009.
Spencer, Jerry Cease and Desist Order issued February 4, 2009 became final on February 25,
2009.
Sunshine Mortgage Corporation, Smyrna, GA (license no. 6333) Cease and Desist Order
issued January 13, 2009 became final on February 12, 2009.

Administrative Actions

February 2009

Page 7

CEASE AND DESIST ORDERS--LIFTED, RESCINED, WITHDRAWN
The Miller Mortgage Group, Inc., McDonough, GA (license no. 20291) Cease and Desist
Order issued May 29, 2008 was rescinded on February 20, 2009.
SouthState Financial Network, Inc., Norcross, GA (license no. 6464) Cease and Desist Or-
der issued October 16, 2008 was rescinded on February 6, 2009.
FINAL CONSENT ORDERS

Duff, Betty Ann, Gainesville, GA Consent Order issued February 1, 2009 became final on
February 1, 2009.
Sgro, Stephanie, Alpharetta, GA, Consent Order issued February 23, 2009 became final on
February 23, 2009.
Nationwide Mortgage Lending Group, Inc., Alpharetta, GA (license no. 22915) Consent
Order issued on February 23, 2009 became final on February 23, 2009.

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

2 Licensees fined for Books & Records

1 Licensee fined for Failure to Fund

2 Licensees fined for Acq of 10% ownership w/o approval 1 Licensee fined for Prohibited Acts

1 Licensee fined for Change in Management w/o approval 1 Licensee fined for Failure to Submit Exam

1 Licensee fined for Loans File not properly maintained

Page 8
Administrative Actions

February 2009

LICENSEES/REGISTRANTS REVOKED, EXPIRED, SURRENDERED, WITHDRAWN OR DENIED IN FEBRUARY 2009

ID#
5831 6183 6333 13547 13595 16035 16080 16832 16907 17079 18073 18904 20173 20846
20882

COMPANY NAME
EQUITY ONE INC DIRECT MTG INC SUNSHINE MTG CORP AMER LENDING GRP INC US MTG CORP 1ST REPUBLIC MTG INC SUMMIT MTG FINL INC JNS MTG SVCS INC MADISON MTG CORP FIDELITY HM MTG CORP LEE FINL CORP IMPACT MTG GRP INC WASHINGTON, ROBERT A EMPOWERMENT HM LENDING ENVISION LENDING GRP INC

CODE
RD BD LD LD LD LD BD BD LD LD LD BD BD
BD
BD

REVOKED
02-10-2009

EXPIRED
02-12-2009
02-18-2009 02-12-2009 02-25-2009

SURRENDER

WITHDRAWN 02-20-2009 02-16-2009
02-03-2009 02-18-2009 02-12-2009 02-27-2009 02-10-2009
02-23-2009 02-13-2009
02-26-2009

DENIED

21208 ABBEY INV LLC

BD

21393 EQUITY LEADERSHIP MTG GRP

BD

21662 HOME LENDING SOLUTIONS CO

BD

21841 PREMIER HOME LENDING, INC

BD

22459 LIBERTY ONE LENDING INC

LD

22571 ST CAP MTG INC

BD

22778 AMERIMORTGAGE CORP

BD

22884 DIAMOND MTG SOLUTIONS INC

BD

23204 H & H FUNDING GRP LLC

BD

23286 MTG LENDING SOLUTIONS LLC

BD

23384 ADVANCED PROCESS SOLUTION

BD

TOTAL: 26

02-26-2009

02-18-2009

02-16-2009

02-01-2009 02-25-2009 02-04-2009

02-02-2009 02-05-2009
02-02-2009 02-17-2009 02-10-2009

Administrative Actions

February 2009

Page 9

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN FEBRUARY 2009

ID#

COMPANY NAME

23757 Mortgage Source Direct, LLC

CITY Atlanta

ST

MB

CD

GA B

ORIGINAL
APPROVAL 02-06-2009

RENEWAL 02-06-2009

REINSTATED

23769 23800 23819

US Mortgage Corporation (New York)
Value Financial Mortgage Services, Inc.
Allon Hill, LLC

Bohemia Miami Denver

NY L

FL

L

CO L

02-06-2009 02-06-2009 02-06-2009

02-06-2009 02-06-2009 02-06-2009

23818 Priority Financial Services, LLC

Baltimore

MD L

02-13-2009

02-13-2009

23839 Paragon Capital Funding Corp.

New York

NY L

02-13-2009

02-13-2009

23841 23826

First Homeowners Financial Corporation
Total Equity Solutions, LLC

Atlanta Atlanta

GA L GA B

02-13-2009 02-20-2009

02-13-2009 02-20-2009

23842 WEI Mortgage Corporation

Rockville

MD L

02-20-2009

02-20-2009

23853 Family Home Corp

Atlanta

GA B

02-20-2009

02-20-2009

23766 H&H Financial Group, LLC (IN)

Newburgh

IN

L

02-27-2009

02-27-2009

23854 AMS Servicing, LLC (DE)

Buffalo

NY L

02-27-2009

02-27-2009

6464 SouthState Financial Network, Inc. Norcross

GA B

06-30-1993

02-06-2009

02-06-2009

11640 Mortgage Investors Group

Knoxville

TN

L

05-31-1996

02-13-2009

02-13-2009

20291 The Miller Mortgage Group, Inc.

McDonough GA B

05-13-2005

02-20-2009

02-20-2009

19903 Alaska Seaboard Partners Limited Eureka Partnership

CA L

01-14-2005

02-27-2009

02-27-2009

TOTAL: 16

Page 10

February 2009

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
We're on the Web! dbf.georgia.gov

LICENSE STATUS CHANJGuEdINgDmICeAnTtO/CRSla&imMONRoTtGifAiGcEatLiIoCnENSE 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 licLeincseeenssheaSlltgaivteusnoInticdeictoattohresdepartment by r(eMgBistCerDed) -orMcoerrttifgieadgemaLiilcoernstsaetuCtoordyeosver-

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 cUopmgprliaadneceBwroitkheCrotdoe 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.



Downgrade Registrant to Lender

R

Registrant

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