Monthly Summary of Mortgage Activities Georgia Department of Banking and Finance 2990 Brandywine Road, Suite 200, Atlanta, GA 30341-5565 OCTOBER 2002 SUMMARY OF ACTIVITIES - MORTGAGE DIVISION --------------------------------------------------------------------------------------------------------------------------------------------------- **IMPORTANT NOTES** DISTRIBUTING THE MONTHLY SUMMARY: The Monthly Summary of Mortgage Activities is E-mailed each month to licensees. The Department requests that all licensees provide the Department a valid E-mail address in order to receive the Monthly Summary each month in a timely manner. For all other licensees, the Monthly Summary is available on the Department's website http://www.state.ga.us/dbf/bulletins.html each month. This delivers the Mortgage Summary to you more rapidly and efficiently. If you have not already provided the Department with your E-mail address, please contact the Mortgage Division at dbfmort@dbf.state.ga.us or at 770986-1633 if you have any questions. Licenses issued in Georgia are subject to revocation, withdrawal or suspension. To verify the current status of a license call 770-986-1269 or check our web site at http://www.state.ga.us/dbf/ LOAN PROCESSORS The Department is considering a change in its policy regarding third party, independent mortgage loans processors. If the Department makes the changes under consideration, third party, independent mortgage loan processors will most likely be required to be licensed as a mortgage broker or be an exclusive, W-2 employee of a single mortgage licensee. Heretofore, the Department has allowed third party, independent mortgage loan processors to be excluded from the licensing requirements and has allowed mortgage licensees to do business with unlicensed mortgage loan processors or mortgage loan processing companies. The Department now believes this exclusion is not permitted by the Georgia Residential Mortgage Act (GRMA), and that third party, independent mortgage loan processors should be licensed or should qualify for the employee exemption permitted under GRMA. The Georgia Fair Lending Act specifically addresses loan processors and includes loan processors in its definition of `lender'. If the Department's policy does change, notice will be provided to existing licensees through future editions of the Monthly Summary and its website, www.state.ga.us/dbf. New licensees will be notified at the time their license is issued. NOTIFICATION OF CHANGE IN ADDRESS Pursuant to Section 7-1-1006 (e) of the Official Code of Georgia, each licensee shall notify the Department in writing of any change in the address of the principal place of business. Notification of a change in address shall be submitted no later that 15 days before the change is made. To facilitate this requirement for licensees, the Department is providing a Notification Of A Change In Address form on the Internet at the following address under the drop-down list for Additional License Forms, Applications & Notifications: http://www.ganet.org/dbf/mortgage_forms.html Please use this form to notify the Department of any change in the address of the company. This form must be signed by the responsible executive officer of the company. NOTIFICATION OF CHANGE IN MANAGEMENT Pursuant to Section 7-1-1006 (e) of the Official Code of Georgia, each licensee shall notify the Department in writing of any change in the address of the principal place of business or of any additional location of business in Georgia, any change in registered agent or registered office, any change of principal officer, director, contact person for consumer complaints, any individual who directs the affairs or establishes policy, or ultimate equitable owner of 10 percent or more of any corporation or other entity licensed under this article, or of any material change in the licensee's financial statement. Notice of a change in address or an addition of a new location shall be submitted no later than 15 days before the change is made. Notice of other changes must be received by the Department no later than 30 business days after the change is effective. Any additional information and documents, if any, must be provided on 8-1/2" by 11" paper. Reporting forms are available on the website publications page www.dbf.state.ga.us/dbf/mortgage_forms.html under "Additional License Forms and Applications". A new form Notice of Change in Management - is also now available to report changes in officers as noted above. CREDIT REPORTS The ease of use of the Internet to obtain credit reports has facilitated the ability of individuals to complete the various applications with the Department which require submission of personal financial and credit history information. However, the screen and page nature of the Internet does not make it apparent to the user that they may not be getting the entire contents of their credit report on just the one screen which shows the credit information. There are often several screens of information under different tabs, and one of the more important pieces of information which is often on another screen or tab and must be submitted to the Department with an individual's credit information is the Public Records section of their report. The complete credit report is required for license applications, changes in management, for branch managers applications, etc. Please be aware of this fact that regardless of whether you use the Internet to obtain credit information or obtain a hardcopy from the credit reporting agency, you must obtain the entire credit report and submit this to the Department. Failure to do so will delay the processing of the application until the entire report is provided by the applicant. Georgia Fair Lending Act - A REMINDER!! The Georgia Fair Lending Act (HB 1361) went into effect October 1, 2002. This law has a significant impact on your lending and brokering activities and we encourage you to review the questions and answer database which has been compiled from questions submitted by industry licensees and other professionals. Information and other resources regarding this legislation can be found at www.state.ga.us/dbf/GAFLAresources.html. If you have additional questions please submit them to gafla@dbf.state.ga.us. In order to ensure that everyone receives consistent interpretations of this law, telephone inquires should be deferred to the E-mail request for information. Also, please keep in mind that mortgage loan processors as defined in the Act are considered creditors. The Department will attempt to answer as quickly as possible new issues which may be submitted and which have not been previously addressed. Please reference that your correspondence regards the Georgia Fair Lending Act in order to expedite the Department's handling of the correspondence. Answers appear on our website. We encourage you to review the information available so that you have the proper procedures in place prior to the effective date of the legislation. EMPLOYMENT OF FELONS An unfortunate trend has been noticed in the Mortgage Industry in Georgia. While we rarely receive an application from an individual who is unable to complete the licensing requirements due to a problem with their criminal background, we often discover that these individuals are seeking employment from persons licensed by this Department. Please be reminded that the provisions of O.C.G.A. 7-1-1004(d) allow the Department to revoke any license where a felon is on staff. If the Department discovers that a licensee has employed a felon who has not complied with the remedies allowed by Section 7-1-1004 (c), the licensee will be fined $1,000 for each violation, and will be issued a Notice of Intent to Revoke their license. The Department intends to pursue this problem aggressively. OUT OF STATE BROKERS The Official Code of Georgia Section 7-1-1003.1 states, in part, that if the applicant for a new or renewal mortgage broker license does not have a physical place of business in Georgia, then a license or a renewal may only be issued if the applicant's home state also does not require that in order to be licensed a mortgage broker must have a physical place of business in their home state. This location must be staffed by at least one supervised employee. It can not be a post office box or any other place where the public receives mail, deliveries, or messages. Currently the states of Alabama, Massachusetts, New Jersey, Pennsylvania, and South Carolina have the requirement that brokers have a physical place of business in their home state. CEASE AND DESIST ORDERS - Issued Countryside Home Loans, Inc. - Cease and Desist Order issued 10-07-02, and became final on 10-27-02. E- Loan, Inc. - Cease and Desist Order issued 10-07-02, and became final on 10-27-02. LICENSEES/REGISTRANTS REVOKED, EXPIRED, SUSPENDED, WITHDRAWN OR DENIED IN OCTOBER 2002 ID# 16654 16711 16143 16409 5694 5791 5850 7057 7103 7437 12305 12370 13239 14195 14252 15029 NAME RT CAPITAL, LLC AMERICAS MTG CTR INC MURRAY, LISA M WORLD RESOURCE MTG US MTG LENDING CORP MTGWORKS INC TOWER FINANCIAL SVCS REAL ESTATE FINL SVCS INC EQUIPRIME MTG LARSON, KENNETH L METFUND MTG CORP CARRIER, PAUL LUDWIG SUCCESS MTG SVCS MORGAN, BERNARD DH CAP, LLC 1ST METROPOLITAN MTG CO CODE BD BD BD BD BD BD LD LD LD BD BD BD BD BD BD LD REVOKED 08/01/2002 10/15/2002 10/01/2002 10/08/2002 EXPIRED SUSPENDED WITHDRAWN 08/09/2002 09/25/2002 09/30/2002 10/01/2002 10/18/2002 10/28/2002 10/23/2002 10/01/2002 10/07/2002 10/10/2002 10/10/2002 10/03/2002 DENIED LICENSEES/REGISTRANTS REVOKED, EXPIRED, SUSPENDED, WITHDRAWN OR DENIED IN OCTOBER 2002 ID# 15284 15793 16149 16449 17102 17367 17550 17786 NAME LOWERRATE.COM, INC. MILLENNIUM CAP INC COMPUTER MTGS AMER INC EQUITY ATLANTA GREENE, GEORGE H MORGAN, CRAIG W PEOPLES CHOICE MTG CHRISTINA L. JONES CODE BD BD BD BD BD BD BD BD REVOKED 10/10/2002 EXPIRED SUSPENDED WITHDRAWN 10/25/2002 10/28/2002 10/25/2002 10/16/2002 10/10/2002 10/18/2002 10/25/2002 DENIED TOTAL: 24 LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN OCTOBER 2002 ID# COMPANY NAME 14979 16891 17498 17524 17602 17611 17628 17537 17565 17598 17608 17616 17627 17631 17644 17702 17719 17729 17753 17754 17755 17756 17757 17758 17759 17761 17763 Franklin First Financial Ltd * D&D Financial Group, Inc. * First American Mortgage Trust Smart Guy Mortgage, Inc. Gary D. Dunagan Charles Merritt Massey Naomi Kaufman Complete Mortgage Funding, Cory Orsen Hester Alton E. Smith Robyn C. Brockington Frederick Lawrence Highsmith Janice Rebecca Thompson Duane Hartness Johnnie Faye Rosser Exceptional Residential Vista Lending, Inc. Peach State Residential Pam Bevil Hoke N. Brantley Randolph Clarence Dean, Jr. Thomas M. Dekle Jeffrey A. Glover Connie Hardaway William Morgan Harvill, Jr. Floria Izadi Girard L. McEntee CITY ST WEST HEMPSTEAD NY ALEXANDRIA IN BROOKLINE MA MORROW GA MACON GA MILLEDGEVILLE GA ATLANTA GA CANTON GA LILBURN GA STATESBORO GA JESUP GA VALDOSTA GA DOUGLASVILLE GA DEMOREST GA RIVERDALE GA ATLANTA GA ATLANTA GA LILBURN GA DALTON GA AUGUSTA GA EAST ELLIJAY GA ATHENS GA STONE MOUNTAIN GA ALPHARETTA GA WOODSTOCK GA KENNESAW GA ATLANTA GA MB CODE L L L B B B B L B B B B B B B B B B B B B B B B B B B ORIGINAL APPROVAL 10/01/1999 11/09/2001 10/04/2002 10/04/2002 10/04/2002 10/04/2002 10/04/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 RENEWAL 10/04/2002 10/04/2002 10/04/2002 10/04/2002 10/04/2002 10/04/2002 10/04/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 10/11/2002 REINSTATED LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN OCTOBER 2002 ID# COMPANY NAME CITY 17764 17769 17771 17683 17707 17708 17709 17710 17711 17712 17715 17716 17717 17739 17740 17741 17742 17743 17744 17745 17748 17749 17750 17752 17760 17762 17765 17767 17770 11531 12347 17136 17511 17520 17554 17563 17564 17573 17649 17659 17666 17682 17688 17701 17723 17738 Philip McGregor Bill Thompson William A. Wilson Stanley R. Rockett Phillip Ollon Gay Jimmy M. Anthony, Sr. Robert Ashley Lee Proctor Woods Calvin DuBose, Jr. Maggie Dutton Clarence Michael Johnston Stanley C. Houston Ann M. Sullivan Chad Bradley Randolph H. Bryan Joseph Bernard DeBose David C. Gallman Judy T. Gladney Teresa S. Grubbs William V. Hardison Matthew Mixon Leonard E. Schaeffer III William J. Taylor Kenneth Wayne Adams Scott Hubbard Loyd G. Massey, Jr. Douglas Stanley Mikula Janice S. Roberts Connie R. Wilkes Hometrust Mortgage , Inc. * Leahy and Walker Finl * H&S Homes, LLC Mortgage Academy of Georgia, Aclarian, Inc. Michael R. Diffee Simone H. Ford Paul Wendell Rumsey, Jr. Ron E. McCleave Jason Travis Pate Paul A. Thomas Perry Brent Conrad Daniel P. Ross Ray W. Brooks Down's Financial, Inc. Merrill Lynch Mortgage Lending, Joseph C. Bedsole LITHONIA FAYETTEVILLE ATHENS DOUGLAS SOPERTON STATESBORO MARIETTA WRENS ALPHARETTA ST. SIMONS IS. ALBANY BLAKELY MCDONOUGH LAWRENCEVILLE COCHRAN ATLANTA LOGANVILLE LAWRENCEVILLE GRIFFIN BRUNSWICK CLARKESVILLE THOMSON COVINGTON CARROLLTON COVINGTON ATLANTA MARIETTA MACON COLUMBUS ATLANTA COSTA MESA EATONTON DETROIT VALRICO KENNESAW CALHOUN LITHONIA SMYRNA VALDOSTA WARNER ROBINS JONESBORO DOUGLAS ADEL DENVER WASHINGTON DOUGLASVILLE ST MB CODE GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA L CA L GA B MI B FL B GA B GA B GA B GA B GA B GA B GA B GA B GA B CO L DC L GA B ORIGINAL APPROVAL 10/11/2002 10/11/2002 10/11/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 04/12/1996 03/21/1997 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 RENEWAL 10/11/2002 10/11/2002 10/11/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/18/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 REINSTATED LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN OCTOBER 2002 ID# COMPANY NAME 17746 17751 17783 17785 17788 17789 17798 17800 17803 17805 17806 R. Browning Holland Frank H. Worley Janet L. Harris Melinda Kay Griggs Robert L. Paschall Lisana D. Owens Hallen Mortgage Corporation Victor Dale Brantley Eileen Brewster William Douglas Timms David F. Griggs CITY DULUTH TOCCOA CALHOUN CALHOUN ALPHARETTA HAPEVILLE ROSWELL BAXLEY ATLANTA CALHOUN CALHOUN ST MB CODE GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B GA B ORIGINAL APPROVAL 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 RENEWAL 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 10/25/2002 REINSTATED TOTAL: 84 B = BROKER L = LENDER R = REGISTRANT + Downgrade Lender to Broker * Upgrade Broker to Lender FINES ASSESSED IN OCTOBER 2002 ID# ISSUE DATE FINE REASO N FINE PAID DATE COMPANY NAME CITY ST 5635 10/11/2002 AUD $1000. 10/17/200 Century Mortgage Corporation Dunwoody GA 5792 10/03/2002 FILE $500. 10/15/200 Royal American Mortgage, Inc. Atlanta GA 5849 10/08/2002 B&R $500. 10/31/200 Goff/Coley Enterprises, Inc. Atlanta GA 5849 10/08/2002 FILE $500. 10/31/200 Goff/Coley Enterprises, Inc. Atlanta GA 5850 5858 5959 5959 10/11/2002 10/18/2002 10/22/2002 10/22/2002 AUD B&R B&R FILE $1000. $500. $500. $1000. Tower Financial Services, Inc. Atlanta GA Power Mortgage Company of Georgia, Woodstock GA Official Mortgage & Investments, Inc. Riverdale GA Official Mortgage & Investments, Inc. Riverdale GA 5959 5959 6002 6002 6009 10/22/2002 10/22/2002 10/18/2002 10/18/2002 10/11/2002 1013 1013 FILE B&R AUD $1000. $4000. $500. $500. $1000. Official Mortgage & Investments, Inc. Riverdale GA Official Mortgage & Investments, Inc. Riverdale GA NDB Mortgage Services Inc. Atlanta GA NDB Mortgage Services Inc. Atlanta GA Mainstreet Mortgage Makers, Inc. Tampa FL 6199 10/11/2002 AUD $1000. Invest America Mortgage Corp. Atlanta GA 6317 10/22/2002 UL $1000. Darryl Haysbert Atlanta GA 6317 10/22/2002 FILE $500. Darryl Haysbert Atlanta GA 6690 10/08/2002 FILE $500. 10/25/200 Tri Star Mortgage, Inc. Lilburn GA 6692 10/11/2002 AUD $1000. 10/21/200 Taylor, Bean & Whitaker Mortgage Corp. Atlanta GA 6830 10/11/2002 AUD $1000. American Acceptance Mortgage, Inc. Chattanooga TN 6867 10/18/2002 FILE $500. HomeQUEST, Inc. Norcross GA 6959 10/25/2002 B&R $500. Kimcor Mortgage, Inc. Chamblee GA 6959 10/25/2002 FILE $500. Kimcor Mortgage, Inc. Chamblee GA FINES ASSESSED IN OCTOBER 2002 ID# ISSUE DATE FINE REASO N FINE PAID DATE COMPANY NAME CITY ST 7062 10/11/2002 AUD $1000. 10/16/200 Springs Mortgage Corporation Fort Mill SC 7086 10/25/2002 FEL $1000. Southern Siding and Window Company, Augusta GA 7086 10/25/2002 B&R $500. Southern Siding and Window Company, Augusta GA 7086 10/25/2002 FILE $500. Southern Siding and Window Company, Augusta GA 7245 10/11/2002 AUD $1000. 10/18/200 Aames Capital Corporation Los Angeles CA 7383 10/18/2002 B&R $500. Sunset Carson Housing Inc. Statesboro GA 7383 10/18/2002 B&R $500. Sunset Carson Housing Inc. Statesboro GA 7387 10/11/2002 AUD $1000. 10/18/200 CMH Homes, Inc. Maryville TN 11435 10/11/2002 AUD $1000. 10/18/200 First Mortgage Corporation Diamond Bar CA 11599 10/03/2002 B&R $500. Total Mortgage Lending, Inc. Monroe GA 11649 10/11/2002 AUD $1000. 10/18/200 Aames Funding Corporation Los Angeles CA 11813 10/11/2002 AUD $1000. World Finance Corporation of Georgia Marietta GA 12121 10/11/2002 AUD $1000. Associates Housing Finance, LLC Irving TX 12375 10/11/2002 AUD $1000. 21st Mortgage Corporation Knoxville TN 12480 10/03/2002 FILE $500. MBM Capital Roswell GA 12746 10/11/2002 AUD $1000. Ocean West Enterprises, Inc. Tustin CA 12967 10/03/2002 FILE $500. 10/28/200 Mortgage Center, Inc. (The) Cullman AL 13127 10/22/2002 NSF $75. Dumas Mortgage Corporation Norcross GA 13906 10/11/2002 AUD $1000. Bottomline Mortgage, Inc. Pasadena CA 15056 10/11/2002 AUD $1000. 10/17/200 Mortgage Capital Associates, Inc. Los Angeles CA 15063 10/03/2002 FILE $500. 10/16/200 Preferred Mortgage Services, Inc College Park GA 15380 10/22/2002 NSF $25. All Credit Mortgage Lenders, LLC College Park GA 15683 10/11/2002 AUD $1000. Alliance Capital Corp. Levittown NY 15748 10/02/2002 B&R $500. 10/25/200 Jimmy Drake Mableton GA 16256 10/11/2002 AUD $1000. Main Line Mortgage of South Florida, Inc. Coral Springs FL 16809 10/08/2002 FILE $500. Innovative Funding Solutions, Inc. Conyers GA 16824 10/02/2002 FEL $2000. 10/18/200 U. S. Financial Services, Inc. Alpharetta GA 16824 10/02/2002 B&R $500. 10/18/200 U. S. Financial Services, Inc. Alpharetta GA 16824 10/02/2002 FILE $1500. 10/18/200 U. S. Financial Services, Inc. Alpharetta GA 16824 10/02/2002 FILE $500. 10/18/200 U. S. Financial Services, Inc. Alpharetta GA 16907 10/11/2002 AUD $1000. 10/24/200 Madison Mortgage Corporation Smyrna GA 16912 10/11/2002 AUD $1000. EWEB Funding Group, LLC Gaithersburg MD FINE REASON 1099 1099 employees B&R BR CD CIC EMP FEE Books & records Unapproved branch Violation of Cease & Desist Order Acq. of 25% ownership without approval Employer under C&D or revocation $6.50 fees not paid LAR NSF REL REN UL OTH FILE 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