Inside this issue: FFIEC Proposed 2 Reverse Mortgage Guidance Georgia Residential 2 Mortgage Act $6.50 Fee Reminder Annual Assessment 2 for State-Chartered Financial Institutions Amendments to 3 Regulation E Regarding Overdraft Fees for Certain Transactions 2010 State Holidays 3 Action on 4 Applications for the Month of December Customer Service 6 Stars for the Month of December News and topics of interest to financial institutions regulated by the Department of Banking and Finance Monthly Bulletin #12 December 2009 New Regulation Z Disclosure for Mortgage Transfers On November 20, 2009, the Federal Reserve Board issued an interim final rule that amends Regulation Z (Truth in Lending Act), establishing a new requirement for notifying consumers of the sale or transfer of their mortgage loans. The amendment requires that a person who acquires by transfer or assignment a mortgage on a consumer's principal dwelling must send the consumer a notice within 30 calendar days of receiving the mortgage that informs the consumer of the identity of the new holder and a contact person representing the new holder, plus the acquisition date. The notice must also identify the location where the transfer will be recorded. The regulatory requirement took effect immediately, but compliance is optional until January 19, 2010. The interim final rule can be viewed at: http://dbf.georgia.gov/vgn/images/portal/cit_1210/0/37/154862759TILAamendment.pdf. DBF Outreach AND UPCOMING SPEAKING ENGAGEMENTS Commissioner Braswell will be speaking at the GBA Economic/Legislative Forum on January 13th at The Embassy Suites, Centennial Olympic Park. In addition, he will be speaking at the CBA Day at the Capitol on January 27th and the GCUA Grass Roots Academy held at the State Capitol on January 28th. Deputy Commissioner for Non-Depository Financial Institutions Rod Carnes and Senior Assistant Financial Examiner Fernando Ornelas will be speaking to the National Mortgage Learning Foundation class in Alpharetta on January 11th. "Safeguarding Georgia's Financial Services" Page 2 FFIEC Proposed Reverse Mortgage Guidance On December 17, 2009, the Federal Financial Institutions Examination Council published in the Federal Register proposed Reverse Mortgage Products: Guidance for Managing Compliance and Reputation Risk. The guidance is designed to help financial institutions ensure that their risk management and consumer protection practices adequately address the compliance and reputation risks raised by reverse mortgage lending. The proposed guidance discusses the general features of, certain legal provisions applicable to, and consumer protection concerns raised by reverse mortgage products. In addition, it focuses on the need to provide adequate information to consumers about reverse mortgage products; to provide qualified independent counseling to consumers considering these products; and to avoid potential conflicts of interest. The proposed guidance also addresses related policies, procedures, and internal controls and third party risk management. We encourage you to review the proposed guidance at: http://www.ffiec.gov/guidance/ReverseMortgageGuidance12-17-09.pdf. Georgia Residential Mortgage Act $6.50 Fee Reminder The $6.50 per loan fees required by O.C.G.A. Section 7-1-1011(b)(2) and Department Rule 80-5-1-.04 are due no later than March 1, 2010 for residential mortgage loans closed during the period July 1, 2009 through December 31, 2009. A $6.50 fee will be due if the loan is a residential mortgage loan as defined in the Georgia Residential Mortgage Act (GRMA), and if a security deed, a modification of a security deed or other form of modification of a security interest is recorded. Financial institutions and mortgage licensees and registrants who act as the collecting agent (including brokers who table fund and collect the fee) have been notified regarding the $6.50 fee payment and information regarding accessing the online fee payment and reporting system. This information is sent to the primary contact for the financial institution or mortgage licensee or registrant, according to the Department's records. Remittal of the GRMA $6.50 Loan Fees and Report are required to be made on-line by entities who have been assigned an ID# in the Department's database, even if no residential mortgage loans were made and no fees are due. With the on-line payment process, the Department accepts either ACH drafts on your checking account or Visa, MasterCard, AmericanExpress, or DiscoverCard credit cards. Reporting and fee payment must be done online from our secure website at: https://bkgfin.dbf.state.ga.us/GRMAFee.html. Annual Assessment for State-Chartered Financial Institutions The annual assessment fee letters were e-mailed to banks and credit unions early in December, and the fees will be assessed by February 1, 2010. The ACH Authorization and Instructions Form can be found on our website from the Banks & Holding Companies Memos and Guidance page or from the Credit Unions Policy Statements and Guidance page. Please e-mail or call Renee` Martin with any questions, rmartin@dbf.state.ga.us or 770-986-1641. Page 3 Amendments to Regulation E Regarding Overdraft Fees for Certain Transactions On November 12, 2009, the Federal Reserve Board finalized amendments to Regulation E that prohibit financial institutions from charging consumers fees for paying overdrafts on automated teller machine (ATM) and one-time debit card transactions, unless the consumer affirmatively consents, or opts-in, to the overdraft service for those types of transactions. This rule applies to any fee charged for overdrawing an account, regardless of what the fee is called (e.g., "NSF" fee). Before opting in, the consumer must be provided a notice that explains the financial institution's overdraft services, including the fees associated with the service, and the consumer's choices. The final rule does not apply to the payment of overdrafts for other types of transactions, including checks, ACH transactions, or decoupled debit card transactions (as they are processed by account-holding institutions as ACH transactions). The final rules, along with a model opt-in notice, are issued under Regulation E, which implements the Electronic Fund Transfer Act. The final rule is effective on January 19, 2010, with a mandatory compliance date of July 1, 2010. The official press release as well as the final rule and other exhibits can be found on the Federal Reserve's website at: http://www.federalreserve.gov/newsevents/press/bcreg/20091112a.htm. 2010 State Holidays 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 2010. Financial Institutions may observe both the official observance day as well as alternative observances indicated. In addition to these designated dates, financial institutions may close on Sunday and one discretionary day each week. If the discretionary day observed is changed permanently or temporarily, customer notice must be posted at least 30 days in advance. Holiday Name New Year's Day 2010 Martin Luther King Jr.'s Birthday Robert E. Lee's Birthday Washington's Birthday Confederate Memorial Day Memorial Day Independence Day Labor Day Columbus Day Veterans' Day Thanksgiving Day Christmas Day Date Observed January 1st Friday January 18th Monday January 19th Tuesday Will be observed on Friday, November 26th February 15th - Monday Will be observed on Thursday, December 23rd April 26th Monday May 31st Monday July 4th Sunday Will be observed on Friday, July 2nd September 6th Monday October 11th Monday November 11th Thursday November 25th Thursday Lee's Birthday will be observed on Friday, November 26th December 25th Saturday (will be observed on Friday, Dec 24th) Washington's Birthday will be observed on Thursday, Dec. 23rd) Page 4 Action on Applications for the Month of December: The following is a summary of official action taken on applications by State Financial Institutions under Chapter 7-1 of the Code of Georgia and petitions for Certificate of Incorporation of Financial Institutions and other matters of interest during the month of December 2009. APPLICATIONS FOR NEW FINANCIAL INSTITUTION FINANCIAL INSTITUTION Community & Southern Bank One Atlantic Center 1201 West Peachtree Street Atlanta, GA 30309 Fulton County CAPITALIZATION $200,000,000 APPROVAL Pending BEGIN BUSINESS PREVIOUS NAME Columbus Bank and Trust Company Hallco Federal Credit Union FINANCIAL INSTITUTION CONVERSIONS CONVERTED TO CB&T, N.A. Columbus Muscogee County APPROVAL Pending HALLCO Community Credit Union Gainesville Hall County 12-28-2009 EFFECTIVE 12-29-2009 APPLICATIONS TO ESTABLISH A BRANCH OFFICE FINANCIAL INSTITUTION SunTrust Bank Atlanta BRANCH OFFICE Sam Rittenberg Boulevard Branch Office 1923 Sam Rittenberg Boulevard Charleston, SC 29407 Charleston County APPROVAL BEGIN BUSINESS 12-11-2009 SunTrust Bank Atlanta Historic Downtown College Park Branch Office 3857 Main Street College Park, GA 30337 Fulton County 12-11-2009 SunTrust Bank Atlanta St. Jude Branch Office Auction Avenue & North 7th Street Memphis, TN 38105 Shelby County 12-11-2009 SunTrust Bank Atlanta Snow Hill Branch Office 5970 Snow Hill Road Ooltewah, TN 37363 Hamilton County 09-08-2009 12-21-2009 SunTrust Bank Atlanta Glen Lakes Branch Office 9701 Commercial Way Weeki Wachee, FL 34613 Hernando County 09-08-2009 12-14-2009 Page 5 FINANCIAL INSTITUTION The Commercial Bank Crawford BRANCH OFFICE Comer Branch Office 75 Highway 72 East Comer, GA 30629 Madison County APPROVAL BEGIN BUSINESS 12-29-2009 PROPOSED NAME Sovereign Bank APPLICATIONS FOR RESERVATION OF A NAME COUNTY Fulton County APPLICANT Mr. James W. Stevens Kilpatrick Stockton, LLP 1100 Peachtree Street, Suite 2800 Atlanta, GA 30309 FINANCIAL INSTITUTION (SURVIVOR) Columbus Bank and Trust Company (fka Columbus Bank and Trust Company) Columbus, GA Columbus Bank and Trust Company (fka Columbus Bank and Trust Company) Columbus, GA FINANCIAL INSTITUTION MERGERS MERGED INSTITUTION CB&T Bank of Middle Georgia Warner Robins, GA Commercial Bank & Trust Company of Troup County LaGrange, GA APPROVAL EFFECTIVE Pending Pending APPLICATIONS TO BECOME A BANK HOLDING COMPANY AND/OR TO ACQUIRE VOTING STOCK OF A FINANCIAL INSTITUTION FORMATIONS ONLY BANK HOLDING COMPANY Community & Southern Holdings, Inc. Atlanta, GA TO ACQUIRE Community & Southern Bank (IO) Atlanta, GA APPROVAL Pending CHECK CASHER LICENSES ISSUED CITY Fort Valley Gainesville Garden City Conyers Thomaston Rome Valdosta Gainesville Newnan Snellville Lithonia Calhoun APPLICANT NAME Alok, LLC * Brindavan, Inc. CJL Group, Inc. Firas, Inc. * Kahan Corporation Maz Business, Inc. * Omhari Corporation Quick - N - Fast, Inc. * Roscoe Enterprises, LLC Sapna Food & Gas, LLC Sayuari Dhanani, Inc. * USA Group of Investment, Inc. TRADE NAME Fort Valley Liquor/Smoke Shop Freddy's Food Mart Garden City Package Store Lakeview Market Sunoco Food Mart Texaco Rome Gas n Go J&S Food Mart Olde Towne Convenience Exxon Food Mart Rock Chapel Stop * =Registered (O.C.G.A. 7-1-700 et al) Page 6 DBF's Customer Service Stars for the Month of December 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 for going above and beyond in serving our customers: Office Manager Susan Brown (Main Office): The Department received a letter from a customer stating: "I want to thank you and tell you that I have never had such prompt attention and resolution to a constituent matter in my almost 30 years of serving in Georgia Legislature. You should be extremely proud of your Department's efficiency." Senior Financial Examiner Betty Thomas, Financial Examiner Rhonda Sampson and Senior Assistant Financial Examiner Fernando Ornelas (NDFI Division--Mortgage Section): The Department received a letter from a customer stating: "I have heard nothing from our employees but good things about your team. Even though they were quite thorough, continually rechecking each area, they were also sensitive to the ongoing operations and very pleasant to have in our office in general." CONGRATULATIONS AND GREAT JOB TO THIS MONTH'S CUSTOMER SERVICE STARS!! GEORGIA DEPARTMENT OF BANKING AND FINANCE 2990 Brandywine Road Suite 200 Atlanta, Georgia 30341-5565 Phone: (770) 986-1633 Fax: (770) 986-1654 or 1655 Email: dbfpress@dbf.state.ga.us Page 7 The Department is the state agency that regulates and examines banks, credit unions, and trust companies chartered by the State of Georgia. 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. We're on the Web! Visit our website at: dbf.georgia.gov Sign-up to Receive this Publication: This publication is delivered to interested parties via e-mail and is also available from the Department's website at: http://dbf.georgia.gov under Publications, Financial Institutions Bulletin. If you would like to be added to our distribution list, please send an e-mail to dbfpress@dbf.state.ga.us and indicate your name, e-mail address, and the publication to which you wish to subscribe. "Safeguarding Georgia's Financial Services"