Monthly summary of mortgage activities, Mar. 2000

Monthly Summary of Mortgage Activities
Georgia Department of Banking and Finance 2990 Brandywine Road, Suite 200, Atlanta, GA 30341-5565
MARCH 2000
Please review the enclosed list for details on licensee additions and deletions which occurred during March. The Mortgage Division received 64 applications for a new license or registration and three applications for reinstatement of a previously revoked license. Fourteen licenses were either revoked or withdrawn during March. There were 2,721 current licensees/registrants as of March 31, 2000.
NOTE: LICENSES ISSUED IN GEORGIA ARE SUBJECT TO REVOCATION, WITHDRAWAL OR SUSPENSION.
TO VERIFY THE CURRENT STATUS OF A LICENSE, CALL 770-986-1633
OR CHECK OUR WEB SITE AT http://www.state.ga.us/dbf/
The Department has established the initial version of its Frequently Asked Questions (FAQ) page on its web site (see above). You should check this page periodically for changes. The next update should occur in May to reflect this year's legislative changes.
In March, 33 mortgage broker/lender examinations were performed by the Mortgage Division examination team. Also, the Mortgage Division received 3,409 mortgage-related telephone calls. Of these calls, 417 were verbal consumer inquiries; and 92 were verbal consumer complaints. The Division of Legal and Consumer Affairs, (770) 986-1633, is charged with the responsibility of handling legal inquiries and consumer complaints.
If you are a current licensee and would like to be notified when the Monthly Mortgage Summary is available on the internet, please E-mail a message to dbfmort@dbf.state.ga.us. Be sure to include your license number and the name of your company in your message. If you do not have E-mail but do have a local Atlanta FAX number (area codes 770, 404, 678, or 800, or 888), have a 9600 or 14400 baud modem, are not currently receiving the Monthly Mortgage Summary by fax, and would like to have the Summary faxed to you, please send a fax to DBFMORT at the Department's Mortgage Division at 770-986-1029.
PER LOAN FEES: "Per loan" fees for the last half of 1999 were due by March 1, 2000. A copy of the "per loan" fee reporting form can be found in Rule 80- 5-1-.04(2) issued by this Department. The fine for late filing of your $6.50 fees more than 60 calendar days late is $1,000. These fines will be posted to the delinquent licensees' records on May 1, 2000. Please keep the following in mind: If you do not close the loan in your name and your name is not on the security deed, you do not owe any $6.50 fees. Regardless of the volume of loans (even "0" loans closed), you should send in the $6.50 fee report. Proper payment of per loan fees will be monitored by our examination team, as well as when licenses are renewed.
ANNUAL WRITTEN REPORT - The reporting form for the 1999 "Annual Written Report" has been mailed to all licensees or registrants who held a license or registration at some time in 1999. This report is due no later than April 1, 2000. If you want proof that your Annual Written Report was filed on time, you should send it to this office "Certified Mail, Return Receipt Requested". Failure to file an Annual

should send it to this office "Certified Mail, Return Receipt Requested". Failure to file an Annual Written Report constitutes grounds for revocation of a current license, denial of any renewal application, and denial of an application to reinstate a license.
AUDITED FINANCIAL STATEMENTS -Lenders and some Brokers have licenses which are dependent upon the filing of current audited financial statements with this office. Those with audits that are more than 15 months old may be subjected to fines and/or revocation of their license. As we have stated many times before, it is the RESPONSIBILITY of the licensee, as a professional licensed to operate in the mortgage industry, to insure that these audits are current AT ALL TIMES. Care must be taken to employ a CPA who has time to service your account in a manner so as to protect your license. Requests for an extension will not be granted. It has been our sad experience that those licensees who are "unable" to have their annual audit prepared are often those who no longer meet licensing standards and are looking for a way to delay revocation.
NOTES TO THE MARCH 2000 SUMMARY:
FINAL ORDER OF THE DEPARTMENT OF BANKING AND FINANCE
Pursuant to a Cease and Desist Order dated March 29, 1999, issued to Mr. Ken Adams, the Department ordered Adams to Cease and Desist from engaging in activities which were subject to the licensing requirement of the Georgia Residential Mortgage Act. Mr. Adams was cited for a violation of O.C.G.A Section 7-1-1002. After a request for a hearing and a Summary Ruling in favor of the Department, this order became final on March 31, 2000. This order against Mr. Adams is now in effect. Please review the provisions of Rule 80-11-3-.01(g) which prohibit and establish the fines for the employment of anyone against whom a Cease and Desist Order is in effect.
COUNTERFEIT LICENSES
WARNING: Examples of counterfeit year 2000 licenses have already been sent to this office. For example, there is a counterfeit license for #6501, Jackson and Associates, 307 West 82 Highway, Poulan, Ga 31781, being circulated by an unlicensed individual. This license was revoked for cause on December 7, 1998. Fines amounting to $10,750 remain unpaid for this company. Most of these fines were levied because the company was accepting loan packages from unlicensed individuals. Revocation followed. Licensed brokers and lenders should be aware that fines will be issued for dealing with unlicensed brokers. All lenders are advised to call to confirm the license status of each broker with which they do business. Brokers must be aware that it is not legal to co-broker with unlicensed parties. See Rule 80-11-3 for a listing of the fines which will be imposed.
CEASE AND DESIST ORDERS LIFTED
Lee, Christi, Lawrenceville, GA - Cease and Desist Order issued 12-1-99, and became final 1-1-2000. Lifted 3- 8-00. Seo, Edward, Chamblee, GA - Cease and Desist Order issued 12-1-99, and became final 1-1-00. Lifted 3-6-00.
EXPERIENCE AND EDUCATION
Recent amendments to O.C.G.A. Section 7-1-1004 enable the Department to establish experience and education requirements as a prerequisite for the issuance of a Georgia residential mortgage broker license. Numerous requests from individuals in the mortgage industry generated this law. The Department has issued for comment on April 17, 2000, such rules to set out these requirements. Generally, applicants for a broker license will be required to have two years experience soliciting, processing, placing and negotiating mortgage loans, or as an alternative, may complete 40 credit hours of training in courses required and approved by the Department. This requirement only needs to be met once; but in order to use education or experience, such education or experience must have been completed within the three years prior to the date of application.

Four of the education hours must be on Georgia Laws and Rules. Under certain conditions current licensees will not be required to satisfy these requirements. Licensees and registrants will receive a copy of the proposed rules.
PLEASE NOTE:
On April 1, 2000, the Department changed to a filing system which is organized by license number. The files are no longer maintained in alphabetical order. This change was necessitated by the large number of similar corporate and/or DBA names. We have even had individual licensees with the same name. Since your license and your records will now be identified primarily by your license number, it is imperative that all correspondence to this Department contain your license number. You should also mention you license number when leaving a telephone messages.
REPEAT COMMENT: EMPLOYMENT OF CONVICTED FELONS IS PROHIBITED
As professionals operating in the mortgage industry in Georgia, it is important that the provisions of Section 7-1-1004 (e) be accorded strict adherence. That provision states that the Department may not issue or may revoke a license if it finds that the applicant, or any person who is a director, officer, partner, agent, employee, or ultimate equitable owner of 10% or more of an applicant, has been convicted of or has pled guilty to a felony, unless such conviction or plea has been abrogated by lawful judicial process or unless the person shall have received a pardon thereafter from the appropriate jurisdiction where the conviction was had. When we become aware that an individual subject to our review is the subject of a felony conviction or guilty plea (without the benefit of abrogation or pardon), we take steps to revoke their license. When we discover such an individual serving as a director, officer, partner, agent, employee, or ultimate equitable owner of 10% or more of an applicant, we take steps to revoke the license of the employer. Significant fines may also be levied.
Licensees having supervised employees should be aware of their responsibility to perform adequate background checks on the individuals that they choose to employ. Those licensees who choose not to perform proper due diligence when selecting their employees may well find that their license is in jeopardy.

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN MARCH 2000

ID# COMPANY NAME

CITY

ST

CODE

ORIGINAL APPROVAL

RENEW'D

REINSTAT'D

12266 Northpoint Mortgage and ATLANTA Finance, Inc.

GA L

02/28/1997 03/03/2000

15368 Chicago United Mortgage, CHICAGO Inc.

IL B

03/03/2000 03/03/2000

15371 Hill Street Capital, LLC

SUWANEE

GA B

03/03/2000 03/03/2000

15414 Larry Stariha

SMYRNA

GA B

03/03/2000 03/03/2000

15415 Sedrick B. Anthony

LITHONIA

GA B

03/03/2000 03/03/2000

15433 Advantage Plus Mortgage AUGUSTA Corp.

GA B

03/03/2000 03/03/2000

15444 Allen Financial Group, Inc. ATLANTA

GA B

03/03/2000 03/03/2000

15452 Rusty Rose, Inc.

MIAMI

FL L

03/03/2000 03/03/2000

15465 American Financial Network, Inc.

BOCA RATON

FL L

03/03/2000 03/03/2000

15466 E.Z. Mortgage

ROSWELL

GA B

03/03/2000 03/03/2000

15467 Lighthouse Mortgage Services Co., Inc.

HUNTINGDON VALLEY

PA L

03/03/2000 03/03/2000

5925 Coastal Plains Fin'l Services+

TIFTON

GA B

15252 Capital Lending Group, Inc. DOUGLASVILLE

GA B

15434 Idella M. Taylor

COLLEGE PARK GA B

15435 Leslie C. Anderson

STONE MOUNTAIN GA B

15436 John P. Moore

COLUMBUS

GA B

15453 Robin L. Odom

SAVANNAH

GA B

15454 Denise J. Cunningham

TUCKER

GA B

15457 First NLC Financial Services, LLC

DEERFIELD BEACH FL L

15458 A&J Mortgage Corporation GREENSBORO

NC B

15464 Ridgeview Mortgage Associates, Inc.

ASHEVILLE

NC B

15479 Erez J. Chanin

ALPHARETTA

GA B

15480 Tennessee Valley Mortgage CHATTANOOGA Corporation

TN B

15482 Nexity Bank

BIRMINGHAM

AL R

15483 Longstreet Mortgage Corporation

ALPHARETTA

GA B

15155 United First Capital

STONE MOUNTAIN GA B

15245 New Coast Mortgage, LLC MARIETTA

GA B

15271 Action Enterprises, Inc.

DOUGLASVILLE

GA B

15413 Georgia Mortgage Associates

MACON

GA B

15437 Family Mortgage Company, JACKSON Inc.

MS B

15447 MBA, Inc.

WOODSTOCK

GA B

15448 Brian E. Bailey

DECATUR

GA B

15455 James R. Higgins

SMYRNA

GA B

15456 Jennifer Phillips

SMRYNA

GA B

15468 Ryan M. Koval

SNELLVILLE

GA B

15469 Leonard Franklin, Jr.

STONE MOUNTAIN GA B

15486 Apple Valley Financial Group

CARTERSVILLE

GA B

15501 Providence Mortgage Company

LANSING

MI B

15510 Horton Mortgage & Finance, LLC

EATONTON

GA L

15511 Chase Preferred Capital Corporation

EDISON

NJ R

15513 Investors Mortgage Services, Inc.

ZIONSVILLE

IN B

15514 Cornerstone Community Bank

CHATTANOOGA

TN R

15325 Towne Lake Financial Services, Inc.

ACWORTH

GA B

15353 Johnson & Associates/South States

BIRMINGHAM

AL L

06/11/1993 03/10/2000

03/10/2000 03/10/2000 03/10/2000 03/10/2000 03/10/2000 03/10/2000 03/10/2000

03/10/2000 03/10/2000 03/10/2000 03/10/2000 03/10/2000 03/10/2000 03/10/2000

03/10/2000 03/10/2000 03/10/2000 03/10/2000

03/10/2000 03/10/2000 03/10/2000 03/10/2000

03/10/2000 03/10/2000 03/10/2000 03/10/2000

03/17/2000 03/17/2000 03/17/2000 03/17/2000

03/17/2000 03/17/2000 03/17/2000 03/17/2000

03/17/2000 03/17/2000

03/17/2000 03/17/2000 03/17/2000 03/17/2000 03/17/2000 03/17/2000 03/17/2000

03/17/2000 03/17/2000 03/17/2000 03/17/2000 03/17/2000 03/17/2000 03/17/2000

03/17/2000 03/17/2000

03/17/2000 03/17/2000

03/17/2000 03/17/2000

03/17/2000 03/17/2000

03/17/2000 03/17/2000

03/24/2000 03/24/2000

03/24/2000 03/24/2000

Mortgage, LLC

15374 Platinum Capital Mortgage, ATLANTA Inc.

15380 Dino Yavuncu

ATLANTA

15417 Veronica Stephens-Echols LITHONIA

15419 Alpine Financial Group, Inc. DULUTH

15439 OnLoan.com, Inc.

FT. LAUDERDALE

15440 Yale Mortgage Corporation MIAMI BEACH

15449 American 1st Finance & Indemnity, Inc.

BALTIMORE

15451 Equity Group Financial Mortgage, Inc.

LIVONIA

15462 Aaron Cobb Industries

CLARKSTON

15492 Statewide Mortgage & Financial Services, Inc.

COLLEGE PARK

15499 Gateway Funding Diversified Mortgage Services, LP

FORT WASHINGTON

15524 Olayinka O. Blackshear ATLANTA

15525 Freddie Langston

LITHONIA

15527 Somerset Mortgage Corporation

ST. SIMONS

15528 1st Georgia Mortgage Funding, Inc.

ROSWELL

15533 BrokersUnited Mortgage Lending, LLC

CHARLOTTE

15535 Pamela Elizabeth Lovelady LITHONIA

15540 Perimeter Remodeling, Inc. SMYRNA

15542 Pyramid Mortgage Services, LLC

STONE MOUNTAIN

15450 P.W. Mortgage, Inc.

STOCKBRIDGE

15459 Iris R. Wood

EAST POINT

15481 Dixie HomeCrafters of Columbus, Inc.

COLUMBUS

15485 Peoples Home Mortgage ATLANTA Corporation, Inc. (The)

15493 FSB Mortgage Company LITTLE ROCK

15500 Pine Creek Capital, Inc. WOODSTOCK

15502 Marilyn Joyce Flatt

PHENIX CITY

15503 Patricia Erin Hall

DULUTH

15506 Empire Equity Group, Inc. CHESTNUT RIDGE

15507 MNB Financial Services, DALLAS Inc.

15549 Stone Street Mortgage, LLC BRENTWOOD

15550 Patricia J. Allen

CHATTANOOGA

6443 Southern Financial Mortgage Corporation+

CUMMING

14004 Executive Mortgage

MACON

GA L
GA B GA B GA B FL L FL L MD B
MI B
GA B GA B
PA L
GA B GA B GA B
GA B
NC L
GA B GA B GA B
GA B GA B GA B
GA B
AR R GA B AL B GA B NY B TX B
TN B TN B GA B
GA B

03/24/2000 03/24/2000

03/24/2000 03/24/2000 03/24/2000 03/24/2000 03/24/2000 03/24/2000

03/24/2000 03/24/2000 03/24/2000 03/24/2000 03/24/2000 03/24/2000

03/24/2000 03/24/2000

03/24/2000 03/24/2000 03/24/2000 03/24/2000

03/24/2000 03/24/2000

03/24/2000 03/24/2000 03/24/2000

03/24/2000 03/24/2000 03/24/2000

03/24/2000 03/24/2000

03/24/2000 03/24/2000

03/24/2000 03/24/2000 03/24/2000

03/24/2000 03/24/2000 03/24/2000

03/31/2000 03/31/2000 03/31/2000

03/31/2000 03/31/2000 03/31/2000

03/31/2000 03/31/2000

03/31/2000 03/31/2000 03/31/2000 03/31/2000 03/31/2000 03/31/2000

03/31/2000 03/31/2000 03/31/2000 03/31/2000 03/31/2000 03/31/2000

03/31/2000 03/31/2000 06/28/1993

03/31/2000 03/31/2000 03/17/2000 03/17/2000

10/16/1998 03/17/2000 03/17/2000

Company & Associates 14399 Lance W. Harger

AURORA

CO B

03/12/1999 03/24/2000 03/24/2000

TOTAL: 78

B = BROKER L = LENDER R = REGISTRANT

+ Downgrade Lender to Broker

LICENSEES/REGISTRANTS REVOKED, EXPIRED, SUSPENDED, WITHDRAWN OR DENIED IN MARCH 2000

ID# NAME

CODE REVOKED EXPIRED SUSPENDED WITHDRAWN DENIED

6793 Great Eastern Finl Svcs LD

03/07/2000

6826 Prestige Processing Inc BD

03/21/2000

6967 Blazer Finl Svcs Inc TN LD

03/29/2000

7208 1st Natl Security Corp

LD 03/17/2000

11718 Atlantic Mtg & Investment LD

03/14/2000

12135 Fleming, Roy M.

BD

03/28/2000

13133 Hammond, Toni Kay

BD

03/03/2000

13243 HomeSide Holdings Inc LD

03/10/2000

13466 Family Tradition Mfd Hs BD

03/17/2000

13765 HomeAdd Finl Corp

LD

03/14/2000

13899 Midori Mtg LLC

BD

03/10/2000

14147 Hamilton Mtg Grp (The) BD

03/07/2000

14363 Option Mtg Grp Inc

BD

03/08/2000

14638 TransPacific, Inc.

BD

03/24/2000

14705 Service 1st Mtg Inc

BD

03/27/2000

15180 Atlantic Lending Corp

BD

03/17/2000

15246 SeaGull Mtg

BD

03/17/2000

15317 Heathrow Funding, Inc. BD

03/17/2000

TOTAL: 18

FINES ASSESSED IN MARCH 2000

ID#

ISSUE DATE

*FINE REASON

FINE

PAID DATE COMPANY NAME

CITY

ST

5741 03/02/2000 B&R

$500. 03/23/2000 Stone Mountain Mortgage, Inc.

Tucker

GA

5741 03/02/2000 B&R

$500. 03/23/2000 Stone Mountain Mortgage, Inc.

Tucker

GA

5860 03/31/2000 B&R

$500.

Cotton State Mortgage, Inc.

Tucker

GA

5860 03/31/2000 REL

$250.

Cotton State Mortgage, Inc.

Tucker

GA

5860 03/31/2000 FILE

$500.

Cotton State Mortgage, Inc.

Tucker

GA

5860 03/31/2000 FILE

$500.

Cotton State Mortgage, Inc.

Tucker

GA

6057 03/21/2000 B&R

$500.

Lakeside Mortgage Brokers, Inc. Greensboro GA

6057 03/21/2000 B&R

$500.

Lakeside Mortgage Brokers, Inc. Greensboro GA

6057 03/21/2000 FILE

$500.

Lakeside Mortgage Brokers, Inc. Greensboro GA

6414 03/02/2000 BR

$250. 03/30/2000 Jon Browne & Associates Financial Stone Mountain GA Group, Inc.

6414 03/02/2000 B&R

$500. 03/30/2000 Jon Browne & Associates Financial Stone Mountain GA Group, Inc.

6414 03/02/2000 B&R

$500. 03/30/2000 Jon Browne & Associates Financial Stone Mountain GA Group, Inc.

6414 03/02/2000 B&R

$500. 03/30/2000 Jon Browne & Associates Financial Stone Mountain GA Group, Inc.

6717 03/31/2000 B&R

$500.

Credit Union Financial Services, Tucker

GA

Inc.

6717 03/31/2000 FILE

$500.

Credit Union Financial Services, Tucker

GA

Inc.

6717 03/31/2000 FILE

$500.

Credit Union Financial Services, Tucker

GA

Inc.

7078 03/31/2000 FEL

$1000.

AmTrust Mortgage Corporation Atlanta

GA

14203 03/02/2000 B&R

$500.

BYL Bank Group

Tustin

CA

14279 03/02/2000 UL

$1000.

Associates Funding Group, Inc. Decatur

GA

14279 03/02/2000 B&R

$500.

Associates Funding Group, Inc. Decatur

GA

14513 03/02/2000 B&R

$500. 03/30/2000 Discover Mortgage Company

Decatur

GA

14546 03/02/2000 B&R

$500. 04/10/2000 Apex Mortgage Group, Inc.

Norcross

GA

1099 B&R BR CD CIC EMP FEE

*FINE REASON

1099 employees

Books & records

FILE

Unapproved branch

LAR

Violation of Cease & Desist Order NSF

Acq. of 25% ownership without REL

approval

REN

Employer under C&D or

UL

revocation

OTH

$6.50 fees not paid

Loan files not properly maintained Late filing Written Annual Report Check returned for insufficient funds Relocation of office without notice Renewal filed late Doing business with unlicensed entity Miscellaneous other

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