Monthly summary of mortgage activities, May 2001

Monthly Summary of Mortgage Activities
Georgia Department of Banking and Finance 2990 Brandywine Road, Suite 200, Atlanta, GA 30341-5565
MAY 2001
Please review the enclosed list for details on licensee additions and deletions which occurred during May. The Mortgage Division received 57 applications for a new license or registration and 1 application for reinstatement of previously revoked or withdrawn license. Twenty-six licenses were either revoked or withdrawn during May. There were 2,843 current licensees/registrants as of May 31, 2001.
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/
In May, two regular mortgage broker/lender examinations were performed by the Mortgage Division examination team. Also, the Mortgage Division received 3,305 mortgage related telephone calls. Of these calls, 363 were verbal consumer inquiries; and 107 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 first half of 2001 are due by September 1, 2001. If you have reported the "per loan" fees to the Department during the past 12 months or if you hold a Georgia Residential Mortgage Lender license, you will be mailed a "per loan" fee reporting form in the near future. Please use this form to remit your fees. If you are a licensed mortgage broker or if you are exempt from licensing or registration a copy of the "per loan" fee reporting form can be found on our website or in Rule 80-5-1-.04 (2) issued by this Department. The fine for late filing of your Per Loan Fees is $1,000. These fines will be posted to the delinquent licensees on or after November 1, 2001. If you do not close the loan in your name, and your name is not on the security deed - you do not owe any "per
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loan" fees. Regardless of the volume of loans (even "0" loans closed), you should send in the fee report. Proper payment of these fees will be monitored by our examination team.
The ANNUAL LICENSE RENEWAL process is now underway. Renewal application forms for the fiscal year 2002 mortgage licenses were distributed beginning February 5, 2001. A $300 late fine was assessed against licensees who failed to return the renewal application form prior to April 1, 2001. As in prior years, all outstanding issues such as fines, fees, stale audits, complaint settlements, etc. must be resolved before your renewal license will be granted. Licensees who do not complete the renewal process by June 30, 2001, will have their licenses expire, and will have to cease operations. Lenders whose license expires will have to divest of Georgia residential loan portfolios. If you have not received your renewal application forms, please contact the Department immediately.
AUDITED FINANCIAL STATEMENTS - Lenders and some Brokers have licenses which are dependent upon the filing of current audited financial statements with this office. Those whose audits which are more than 15 months old may be subjected to fines and/or revocation of their license. It is the RESPONSIBILITY of the licensee, as professionals 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. License renewals will not be granted for those licensees whose audits are not current. Please keep in mind that the net worth requirements in Georgia are predicated on tangible assets. Assets including but not limited to items such as "goodwill" and accounts "due from" shareholders, affiliated companies, directors or officers will not count as tangible assets.
REPEAT COMMENT:
LICENSING STANDARDS
The renewal process this year has revealed continuing problems with some of the CPA's who are performing audits for certain licensees who must demonstrate that they continue to meet licensing standards. Unfortunately, we have discovered several circumstances where CPA's are preparing "as instructed" audits. Apparently, no proper verification of assets is being performed in accordance with generally accepted auditing standards as prescribed by the Financial Accounting Standards Board of the American Institute of Certified Public Accountants. We have discovered CPA's certifying property values which are far in excess of a reasonable fair market value, and which are not supported by valid appraisals. We have discovered instances of CPA's certifying assets which are not even held in the name of the licensee. We have discovered CPA's certifying balances in financial accounts which do not remotely begin to resemble the actual balances which are (or have ever been) in an account. We have even seen instances where a CPA certified an audit of a "corporation" which was not even incorporated! Our examiners have been instructed to continue to perform independent verification of assets as a routine part of their examinations. Filing an audit (which is a condition of continued licensure for some licensees) with this Department which contains false statements or material misrepresentations of this nature is deemed to be a violation of Section 7-1-1013 (11) of the Georgia Residential Mortgage Act. It is possible and likely that such an action could result in termination of the license, either through revocation or expiration.
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On another issue, it appears that some individuals and companies who are licensed as mortgage brokers are acting in the capacity of a lender by funding loans in their name and not assigning the loan within 24 hours to a licensed lender. When this situation is discovered, the broker will be required to upgrade to a lender's license. This will result in the imposition of additional licensing fees for the period of time that the broker acted in the capacity of a lender, and fines for the loans which were funded in the name of the broker. The proper reporting schedules must also be completed. Should the broker not be able to meet licensing standards as a lender, the broker will be required to divest of any remaining loans being carried on their books, and the license will be subject to Revocation.
PLEASE NOTE:
Commissioner Bridges has appointed Drexel Beck as Acting Deputy Commissioner for Mortgage Affairs. This interim appointment is due to Robley Rigdon's long term military assignment to Bosnia, where he is serving as Assistant Division Commander in NATO's Multi National Division. Robley is expected to return to his DBF duties during the last quarter of 2001.

ID#
5727 5903 5903 5987 5987 7072 7072 7255 7255 7374 7374 12314 12314 12469 12469 13001 13001 13408 13408 13408 13556 13556 14887 14974 14974

FINES ASSESSED IN MAY 2001

ISSUE DATE

FINE REASON FINE

PAID DATE

COMPANY NAME

05/02/2001 BR

$250. 05/08/2001 Citizens Fidelity Mortgage Corp

05/03/2001 REN

$300. 06/14/2001 Mortgage Associated Lending

05/03/2001 NSF

$25. 06/14/2001 Mortgage Associated Lending

05/03/2001 REN

$300.

Lincolnshire Financial Group, Inc.

05/03/2001 NSF

$25.

Lincolnshire Financial Group, Inc.

05/24/2001 REN

$300.

National Credit Financial Consultants

05/24/2001 NSF

$25.

National Credit Financial Consultants

05/03/2001 REN

$300.

Security Home Construction, Inc.

05/03/2001 NSF

$25.

Security Home Construction, Inc.

05/14/2001 REN

$300.

Michael Anthony Grier

05/14/2001 NSF

$25.

Michael Anthony Grier

05/22/2001 REN

$300.

Hamilton Insurance Services

05/22/2001 NSF

$40.

Hamilton Insurance Services

05/14/2001 REN

$300.

Robert Olden Carter

05/14/2001 NSF

$25.

Robert Olden Carter

05/14/2001 REN

$300.

Valerie L. Harper

05/14/2001 NSF

$25.

Valerie L. Harper

05/30/2001 OTH

$13000.

First Stop Financial, Inc.

05/30/2001 FILE

$5500.

First Stop Financial, Inc.

05/30/2001 B&R

$3000.

First Stop Financial, Inc.

05/14/2001 REN

$300.

Fernando Barney

05/14/2001 NSF

$25.

Fernando Barney

05/16/2001 BR

$500. 05/24/2001 Primary Capital Advisors, LC

05/16/2001 UL

$4000.

Pyramid Home Loans

05/16/2001 B&R

$500.

Pyramid Home Loans

3

CITY ST

Marietta

GA

Decatur

GA

Decatur

GA

Decatur

GA

Decatur

GA

Norcross

GA

Norcross

GA

Stone Mountain GA

Stone Mountain GA

Lithonia

GA

Lithonia

GA

Duluth

GA

Duluth

GA

Jonesboro

GA

Jonesboro

GA

Atlanta

GA

Atlanta

GA

Decatur

GA

Decatur

GA

Decatur

GA

Lithonia

GA

Lithonia

GA

Atlanta

GA

Norcross

GA

Norcross

GA

14974 14974 14974 14974 14974 14974 15120 15278 15278 15290 15290 15290 15290 15725 15725 15921 15921 15974 15974 16281 16281

05/16/2001 B&R 05/16/2001 FILE 05/16/2001 FILE 05/16/2001 FILE 05/16/2001 FILE 05/16/2001 B&R 05/17/2001 B&R 05/03/2001 REN 05/03/2001 NSF 05/17/2001 FILE 05/17/2001 B&R 05/17/2001 B&R 05/17/2001 B&R 05/14/2001 REN 05/14/2001 NSF 05/14/2001 REN 05/14/2001 NSF 05/14/2001 REN 05/01/2001 NSF 05/14/2001 REN 05/14/2001 NSF

$500. $1000. $1500.
$500. $500. $500. $500. $300. $25. $1500. $500. $500. $500. $300. $25. $300. $25. $300. $25. $300. $25.

Pyramid Home Loans Pyramid Home Loans Pyramid Home Loans Pyramid Home Loans Pyramid Home Loans Pyramid Home Loans Bottom Line Lending, Inc. Erica Peterson Erica Peterson ABC Mortgage Services, Inc. ABC Mortgage Services, Inc. ABC Mortgage Services, Inc. ABC Mortgage Services, Inc. Donald L. Young Donald L. Young Ernest Stuart VanHoozer Ernest Stuart VanHoozer Barbara Jean Shamlin Barbara Jean Shamlin T.L.H. Mortgage Corporation T.L.H. Mortgage Corporation

1099 B&R BR CD CIC EMP FEE FEL

*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 revocation UL

$6.50 fees not paid

OTH

Employment of a felon

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

Norcross

GA

Norcross

GA

Norcross

GA

Norcross

GA

Norcross

GA

Norcross

GA

Augusta

GA

Snellville

GA

Snellville

GA

Augusta

GA

Augusta

GA

Augusta

GA

Augusta

GA

Carrollton

GA

Carrollton

GA

Carrollton

GA

Carrollton

GA

Stone Mountain GA

Stone Mountain GA

Norcross

GA

Norcross

GA

4

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

IN MAY 2001

ID#

NAME

CODE REVOKED EXPIRED SUSPENDED WITHDRAWN

5620 METROPOLITAN MTG CORP B

05/15/2001

5624 MCNATT & MALONE MTG CO B

05/04/2001

6490 MALONE MTG CO

L

05/11/2001

6595 EXTRACO MTG CORP

L

05/22/2001

6664 AMCASH MTG INC

B

05/04/2001

7014 RESIDENTIAL MONEY

L

CENTERS

05/25/2001

12198 MUTUAL HOME MTG INC

B

05/22/2001

13077 OLD WORLD FINL SVCS INC B

05/15/2001

13267 DS & CE MTG CONSULTANTS B

05/21/2001

13352 CENTURY FINL GROUP

L

05/10/2001

14750 SMC MTG GROUP

L

05/02/2001

14855 NEW DAWN FINANCING

B

05/21/2001

14908 MIKE PRINCE & ASSOC

B

05/15/2001

14920 ULTIMATE MTG GRP, LLC

B

05/10/2001

15103 DIAMOND LENDERS GRP

B

CORP

05/15/2001

15143 MTG ONE FINL SVCS

B

05/15/2001

15181 EMMESS MTG CO LLC

B

05/10/2001

15418 AMERICAN SKYCORP, INC. L

05/21/2001

15453 ODOM, ROBIN L

B

05/15/2001

15462 EVERDRY WATERPROOFING B

05/15/2001

15501 PROVIDENT MTG CO

B

05/10/2001

15627 PREMIUM FINL SVCS, INC

B

05/23/2001

15663 COUNTRYWIDE MTG INC

B

05/30/2001

15758 UNIVERSAL FUNDING GRP B

05/08/2001

DENIED

TOTAL: 24

5

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN MAY 2001

ID# COMPANY NAME

CITY

ST MB CODE ORIGINAL APPROVAL RENEWAL REINSTATED

11579 Fidelity Funding Mtg Corp. +

RICHARDSON TX B

05/10/1996 05/04/2001

16384 Select Financial Group, Inc.

KENNESAW

GA B

05/04/2001 05/04/2001

16409 World Resource Mortgage, LLC

NEWNAN

GA B

05/04/2001 05/04/2001

16410 Compass Financial Services, Inc. FAYETTEVILLE GA B

05/04/2001 05/04/2001

16411 Triple J Homes

CARROLLTON GA B

05/04/2001 05/04/2001

16438 Lighthouse Lending

AUGUSTA

GA B

05/04/2001 05/04/2001

16391 Trimark Funding Inc.

ANAHEIM

CA B

05/11/2001 05/11/2001

16400 Sunrise Financial, Inc.

CHICAGO

IL B

05/11/2001 05/11/2001

16431 United Mortgage Funding

DORAVILLE

GA B

05/11/2001 05/11/2001

16441 Barry L. Weatherly

MACON

GA B

05/11/2001 05/11/2001

6405 Wall Street Capital Funding +

CONYERS

GA B

06/23/1993 05/18/2001

15349 NovaStar Home Mtg, Inc.+

WESTWOOD

KS L

01/21/2000 05/18/2001

16051 American Money Company

CHARLOTTE

NC L

05/18/2001 05/18/2001

16303 RLI Mortgage Services, LLC

PEORIA

IL L

05/18/2001 05/18/2001

16395 South Street Mortgage, Inc.

LILBURN

GA B

05/18/2001 05/18/2001

16412 Sharp Mortgages, Inc.

JACKSONVILLE FL B

05/18/2001 05/18/2001

16413 J And R Financial Group, Inc.

CLAYTON

GA L

05/18/2001 05/18/2001

16429 First Capital Financial

SUWANEE

GA B

05/18/2001 05/18/2001

16434 25 Hours A Day, Inc

OMAHA

NE B

05/18/2001 05/18/2001

16437 Carpet Showcase, Inc.

DALTON

GA B

05/18/2001 05/18/2001

16449 Equity Atlanta

NEWNAN

GA B

05/18/2001 05/18/2001

11588 HomeComing Finl Network, Inc.# MINNEAPOLIS MN R

05/10/1996 05/25/2001

16069 Skye Mortgage Group, LLC +

FRANKLIN

TN B

09/08/2000 05/25/2001

15657 NCS Mortgage Lending Company NORCROSS

GA R

05/05/2000 05/11/2001

05/11/2001

6018 Realty Mortgage Corporation

JACKSON

MS L

06/21/1993 05/18/2001

05/18/2001

13376 Ernest H. Abernethy, Jr.

ATLANTA

GA B

03/27/1998 05/18/2001

05/18/2001

12897 Buckhead Mortgage

DECATUR

GA B

10/03/1997 05/25/2001

05/25/2001

TOTAL: 27

B = BROKER L = LENDER R = REGISTRANT

* Upgrade Broker to Lender + Downgrade Lender to Broker

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