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 Fourteen licenses were either revoked or withdrawn during March.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 Return to Bulletins/Summaries Page Return to DBF Home Page