Monthly summary of mortgage activities, Mar. 2002

Monthly Summary of Mortgage Activities
Georgia Department of Banking and Finance
2990 Brandywine Road, Suite 200, Atlanta, GA 30341-5565
MARCH 2002 SUMMARY OF ACTIVITIES - MORTGAGE DIVISION
----------------------------------------------------------------------------------------------------------------------------------------------------**IMPORTANT NOTES**
STAFF CHANGES
Melinda G. Kinard has joined the Mortgage Division as Director of Mortgage Licensing and Administration. Melinda has been with the Department since 1978. She began service with the Department as a bank and information systems examiner in the Albany, GA field office. She moved to Atlanta in 1983 and worked actively with the Department's information systems. She has served as the Director of Information Systems and Training for the Department before joining the Division.
DISTRIBUTING THE MONTHLY SUMMARY: The Monthly Summary of Mortgage Activities is emailed each month to licensees. The Department requests that all licensees provide the Department a valid email 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 email address, please contact the Mortgage Division at dbfmort@dbf.state.ga.us or at 770-986-1633 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/
PER LOAN FEES - "Per loan" fees for the second half of 2001 were due by March 1, 2002. If you hold a Georgia Residential Mortgage Lender license, you were mailed a "per loan" fee reporting form. Please use this form to remit your fees. Regardless of the volume of loans (even "0" loans closed), you should send in the fee report. 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 have been posted to the delinquent licensees. 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 loan" fees. 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 2003 mortgage licenses were distributed beginning February 7, 2002. A $300 late fine will be assessed against licensees who fail to return the renewal application form prior to April 1, 2002. As in prior years, all outstanding issues such as fines, fees, stale audits, complaint resolution, etc. must be resolved before your renewal license will be granted. Licensees who do not complete the renewal process by June 30, 2002, will have their licenses expire, and will have to cease operations. 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. The licensees whose audits 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.
NOTICE OF NON-COMPLIANCE FOR LICENSE RENEWALS
Any renewal application received by the Department which does not contain all of the required information or documentation may be returned to the applicant for correction.
Those with missing documentation which pass our initial cursory review or that have other supervisory issues will be mailed a notification of the deficiency. These notices will be made either by fax, e-mail or by regular U.S. Postal Service mail. The Department will rely on the most recent fax number, e-mail address or mailing address which we have been given by the licensee as to where to send this notice. Applications received without payment or paid with a bad check will not be considered as being "filed." Late filing fines may be levied.
The receipt and/or correction of information will be expedited using fax or e-mail were applicable. However, if you prefer or require your notice to be sent by U.S. Postal Service mail, please send a stamped, self addressed envelope with your renewal application.
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 each mortgage licensee has signed an oath pledging that they will not employ individuals who are disqualified from employment in the residential mortgage industry by the provisions of OCGA Section 7-1-1004 (e). OCGA Section 7-1-1004 (f) permits this Department to obtain conviction data on individuals working in the mortgage industry. Employers should run background checks on any person seeking employment in order to comply with this law. If the Department discovers that a licensee has employed a felon, the licensee will be fined $1,000 for each violation, and will be issued a Notice of Intent to Revoke their license. The Georgia law was changed in Senate Bill 353 to require background checks. That bill has been sent to the Governor for signature and would be effective July 1, 2002. There will be more information regarding this in the next issue.
"Statutory Employees" Must be Licensed
The Department has received a number of inquiries concerning whether "statutory employees" fall within the employee exemption of O.C.G.A 7-1-1001(11). O.C.G.A. 7-1-1001(11) provides an exemption from the licensing requirement for "A natural person employed by a licensed mortgage broker, a licensed mortgage lender, or any person exempted from the licensing requirements of this article when acting within the scope of employment and under the supervision of the licensee or exempted person as an employee and not as an independent contractor. To be exempt, a natural person must be employed by only one such employer ... ." In addition, Department Rule 80-11-4-.03 provides that the employee exemption applies only to natural persons who meet all of the following criteria:
a. An employee must be employed by just one licensee and work exclusively for that licensee; b. An employee may not solicit, process, or place loans for anyone else while claiming the exemption; c. An employee's procedures and activities must be supervised by the licensee on a daily basis, and the licensee is responsible for the actions of such employees; and d. An employee may not be paid or compensated for performance of mortgage activity on a 1099 basis.

The Department agrees with the position of the Internal Revenue Service that statutory employees are independent contractors. See Publication 15-A, Employer's Supplemental Tax Guide (Rev. January 2002). Our reading of this law indicates that under certain very limited instances, such an independent contractor may be treated as a "statutory employee" for IRS purposes. But, the person is essentially working independently. "Statutory employees," then, are not employees within the meaning of O.C.G.A. 7-1-1001(11) and do not qualify for the employee exemption from the GRMA licensing requirements.
Furthermore, the Department advises employers to be wary and to follow the procedures mandated by the IRS whenever an employee claims total exemption from withholding and his or her earnings would normally exceed $200 per week, or if an employee claims total exemption from withholding and claims more than 10 exemptions. See Publication 15, Employer's Tax Guide (Rev. January 2002).
Failure to comply with the Georgia Residential Mortgage Act and Rules of the Department may result in fines and sanctions, including the revocation of a license issued by the Department. You may access the laws and regulations concerning these and similar issues on the Department's website at http://www.ganet.org/dbf and the IRS website at http://www.irs.treas.gov/.

LICENSEES/REGISTRANTS REVOKED, EXPIRED, SUSPENDED, WITHDRAWN OR DENIED IN MARCH 2002

ID#
7274 12050 12086 12974 13123 13174 14103 14198 14413 14440 14544 14819 15102 15348 15451 15585 15604 15725 15792 15806 15969 16027 16179 16313 16550 16720 17165

NAME
HOMES FOR BETTER LIVING LYON MTG GRP LLC YOUNG-MCKENZIE ASSOC PEACH PLUS FINL INC AMERISTAR MTG CORP ROBINSON-HUMPHREY CO CHARTER CAP SVCS INC BASKIN, DELOIS FULLER, EUGENE STEWART, JOHN S EDWARD JONES MTG, LLC ATL FINL GRP INC ONEPIPELINE.COM, INC. MANHATTAN GRP MTG INC EQUITY GRP FINL MTG MILLER, GEOFFREY C AMER ADVANTAGE FUNDIN YOUNG, DONALD L CANNON, STEVEN M KIDD, JULIA A MADDOX, KEVIN L COX FINL CENTERS, INC. COVENANT CAPITAL MTG, INC PSE GRP INC USALOAN SE INC WINDAU, MELANIE SUE GOLDEN CAPITAL INV INC

CODE
BD BD BD BD BD RD LD BD BD BD LD BD BD BD BD BD BD BD BD BD BD BD BD BD BD BD BD

REVOKED
03/04/2002
03/19/2002
03/13/2002 03/26/2002
03/28/2002 03/13/2002

EXPIRED

SUSPENDED

WITHDRAWN
03/01/2002 03/06/2002 03/27/2002

10/03/2001 03/26/2002 03/27/2002 03/06/2002

03/12/2002 03/12/2002 03/29/2002 03/19/2002

03/27/2002 03/07/2002

03/28/2002 03/06/2002 03/29/2002 03/28/2002 03/04/2002

03/07/2002 03/25/2002 03/26/2002

DENIED

TOTAL: 27

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN MARCH 2002

ID# COMPANY NAME

CITY

17076 17110 17111 17116 17117 17119 17120 17132 17154 17156 17161
5889 7268 17105 17134 17139 17140 17148 17155 17162 16339 17160

Stockton Turner, LLC Wyndham Capital Mortgage, Inc. Willie Lamar Turner Affiliate Lending Corporation Ceridian Mortgage Corporation Best Choice Mortgage, Inc. Christopher Wilson Woods Virginia Milner Consola Donald G. Landry Willie Lee Mason Deborah Gay Williams Springfield Finl + Ameron Mortgage Corp * Mortgagebot, LLC 1st Preference Mortgage Pinckney K. Ridley IV HLM Mortgage Co. Platinum Mortgage, LLC Michael Scott Moore Georgia Loan Services, Inc. American Freedom Mtg, Inc * Henry C. Ransom, Jr.

MAITLAND CHARLOTTE MORROW ATLANTA ATLANTA MARIETTA CARTERSVILLE DULUTH GAINESVILLE HADDOCK WEST POINT DOUGLASVILLE MARIETTA CEDARBURG BALTIMORE MARIETTA DECATUR MARIETTA SNELLVILLE MARIETTA ATLANTA ALPHARETTA

ST MB CODE
FL B NC B GA B GA L GA L GA B GA B GA B GA B GA B GA B GA B GA L WI L MD L GA B GA B GA B GA B GA B GA L GA B

ORIGINAL APPROVAL
03/01/2002 03/01/2002 03/01/2002 03/01/2002 03/01/2002 03/01/2002 03/01/2002 03/01/2002 03/01/2002 03/01/2002 03/01/2002 06/18/1993 08/04/1995 03/08/2002 03/08/2002 03/08/2002 03/08/2002 03/08/2002 03/08/2002 03/08/2002 03/09/2001 03/01/2002

RENEWAL
03/01/2002 03/01/2002 04/03/2002 03/01/2002 03/01/2002 04/03/2002 04/03/2002 04/03/2002 04/03/2002 03/01/2002 04/03/2002 03/08/2002 03/08/2002 03/08/2002 03/08/2002 03/08/2002 03/08/2002 03/08/2002 04/03/2002 03/08/2002 03/15/2002 03/27/2002

REINSTATED

TOTAL: 22

B = BROKER L = LENDER R = REGISTRANT

+ Downgrade Lender to Broker * Upgrade Broker to Lender

FINES ASSESSED IN MARCH 2002

ID#

ISSUE

DATE

FINE REASON

FINE

PAID DATE

COMPANY NAME

CITY

ST

5649 03/22/2002 FEE

$ 1,000

Chase Mortgage Company-West

Edison

NJ

5756 03/22/2002 FEE

$1000.

Damla Corporation

Stone Mountain

GA

5819 03/22/2002 FEE

$1000.

First Choice Mortgage, Inc.

Augusta

GA

5831 03/22/2002 FEE

$1000. 04/02/200 Equity One, Inc.

Marietta

GA

5832 03/22/2002 FEE

$1000.

Harvest Mortgage Co., Inc.

Marietta

GA

5873 03/04/2002 B&R

$500. 03/20/200 Monticello Mortgage Corporation

Atlanta

GA

5919 03/22/2002 FEE

$1000.

Infinity Mortgage Corporation

Atlanta

GA

6024 03/22/2002 FEE

$1000.

Washtenaw Mortgage Company

Ann Arbor

MI

6244 03/22/2002 FEE

$1000.

Associates First Capital Mortgage

Irving

TX

6245 03/22/2002 FEE

$1000.

CitiFinancial Mortgage Company, Inc.

Irving

TX

6348 03/22/2002 FEE

$1000.

Seacoast Equities, Inc.

La Mesa

CA

6500 03/19/2002 B&R

$500.

Mortgage and Investment Services

Rome

GA

6500 03/19/2002 FILE

$500.

Mortgage and Investment Services

Rome

GA

FINES ASSESSED IN MARCH 2002

ID#

ISSUE

DATE

FINE REASON

FINE

PAID DATE

COMPANY NAME

CITY

ST

6820 6833 6836

03/22/2002 FEE 03/22/2002 FEE 03/22/2002 FEE

$1000. $1000. $1000.

First Franklin Financial Corporation

Atlanta

GA

Saxon Mortgage, Inc.

Glen Allen

VA

Loans by Summerville, Inc.

Augusta

GA

7078 7410 7414 7439

03/22/2002 FEE 03/22/2002 FEE 03/22/2002 FEE 03/22/2002 FEE

$1000. $1000. $1000. $1000.

04/01/200

AmTrust Mortgage Corporation Bann-Cor Mortgage First Consumer Credit, L.L.C. First Service Mortgage, Inc.

Atlanta

GA

Mission Viejo

CA

Dallas

TX

College Park

GA

11478 11586 11600 11764

03/22/2002 FEE 03/22/2002 FEE 03/22/2002 FEE 03/22/2002 FEE

$1000. $1000. $1000. $1000.

C.F.M. Mortgage Co.

College Park

GA

Unicor Funding, Inc.

Mission Viejo

CA

The Miami Valley Bank

Lakeview

OH

Citizens Trust Bank Mortgage Services,

Decatur

GA

11830 12005 12095 12111

03/05/2002 03/22/2002 03/22/2002 03/19/2002

B&R FEE FEE B&R

$500. $1000. $1000.
$500.

04/01/200

Southland Lending Group, LLC America's MoneyLine, Inc. Title West Mortgage, Inc. Adrain Appling

Marietta

GA

Glen Allen

VA

Woodland Hills

CA

Macon

GA

12111 12111 12191 12207

03/19/2002 UL 03/19/2002 FEL 03/22/2002 FEE 03/22/2002 FEE

$3000. $1000. $1000. $1000.

04/01/200

Adrain Appling Adrain Appling NovaStar Mortgage, Inc. Macon Mortgage, Inc.

Macon

GA

Macon

GA

Westwood

KS

Macon

GA

12447 03/22/2002 FEE

$1000.

Loan Store, Inc. (The)

Florissant

MO

12525 03/27/2002 BR

$250. 04/05/200 Daniel E. Greene, CPA

Charlotte

NC

12748 03/22/2002 FEE

$1000.

Washington Mortgage Services, Inc.

Federal Way

WA

12868 03/22/2002 FEE

$1000.

World Wide Financial Services, Inc.

Southfield

MI

13019 13189 13283 13351 13384

03/22/2002 FEE 03/22/2002 FEE 03/22/2002 FEE 03/22/2002 FEE 03/22/2002 FEE

$1000. $1000. $1000. $1000. $1000.

Calmco Servicing L.P.

Austin

TX

E-Loan, Inc.

Dublin

CA

CFB Financial, Inc.

Carrollton

GA

Tribeca Lending Corp.

New York

NY

Macon Savings Bank, Inc. SSB

Franklin

NC

13475 13512 13532 13598

03/22/2002 03/22/2002 03/22/2002 03/13/2002

FEE FEE FEE B&R

$1000. $1000. $1000.
$500.

SouthPoint Financial Services, Inc.

Alpharetta

GA

Southstar Funding, LLC

Atlanta

GA

USA Financial Services, Inc.

Chantilly

VA

Vision One Mortgages Incorporated

Lithonia

GA

13598 03/13/2002 B&R

$500.

Vision One Mortgages Incorporated

Lithonia

GA

13640 03/22/2002 FEE

$1000.

Champion Mortgage Co., Inc.

Parsippany

NJ

13653 03/22/2002 FEE

$1000.

Vintage Mortgage Corporation

Voorhees

NJ

13669 03/05/2002 B&R

$500. 03/18/200 First Choice Mortgage Financial

Marietta

GA

13669 03/05/2002 CIC

$500. 03/18/200 First Choice Mortgage Financial

Marietta

GA

13795 03/22/2002 FEE

$1000.

Golden First Mortgage Corp.

Melville

NY

13805 03/19/2002 UL

$6000.

E & Y Mortgage Corporation, Inc.

Macon

GA

13805 03/19/2002 BR

$250.

E & Y Mortgage Corporation, Inc.

Macon

GA

13805 03/19/2002 B&R

$500.

E & Y Mortgage Corporation, Inc.

Macon

GA

13805 03/19/2002 B&R

$500.

E & Y Mortgage Corporation, Inc.

Macon

GA

13805 03/19/2002 1013

$3000.

E & Y Mortgage Corporation, Inc.

Macon

GA

13983 03/22/2002 FEE

$1000.

Union Bancshares Mortgage Corp.

Holiday

FL

14029 03/05/2002 B&R

$500. 03/14/200 Outback Builders, Inc. (The)

Woodstock

GA

14103 03/22/2002 FEE

$1000.

Charter Capital Services, Inc.

Macon

GA

14203 03/22/2002 FEE

$1000.

BYL Bank Group

Tustin

CA

14337 03/22/2002 FEE

$1000.

Laguna Capital Mortgage Corporation

Aliso Viejo

CA

FINES ASSESSED IN MARCH 2002

ID#

ISSUE

DATE

FINE REASON

FINE

PAID DATE

COMPANY NAME

CITY

ST

14383 03/22/2002 FEE

$1000.

Homeowners Loan Corp.

Atlanta

GA

14635 03/22/2002 FEE

$1000.

First Funding Mortgage Corp.

Rosedale

NY

14796 03/05/2002 B&R

$500. 03/28/200 Nations Funding Group, Inc.

Atlanta

GA

14845 15036 15058 15059

03/22/2002 FEE 03/22/2002 FEE 03/22/2002 FEE 03/22/2002 FEE

$250. $1000. $1000. $1000.

National Bank

Kileen

TX

Specialized Financial Services, Inc.

Bedford

TX

SWBC Mortgage Corporation

San Antonio

TX

Empire Home Lending Corporation

Boca Raton

FL

15061 03/01/2002 CIC

$500.

Affordable Mortgage Of Kingsbay, Inc.

Kingsland

GA

15061 03/01/2002 FILE

$500.

Affordable Mortgage Of Kingsbay, Inc.

Kingsland

GA

15336 03/01/2002 B&R

$500. 03/15/200 Adventure Mortgage Corporation

Dalton

GA

15336 03/01/2002 B&R

$500. 03/15/200 Adventure Mortgage Corporation

Dalton

GA

15336 03/01/2002 B&R

$500. 03/15/200 Adventure Mortgage Corporation

Dalton

GA

15336 03/01/2002 B&R

$500. 03/15/200 Adventure Mortgage Corporation

Dalton

GA

15337 03/19/2002 FILE

$500.

Village Home Loans, LLC

Atlanta

GA

15337 03/19/2002 B&R

$500.

Village Home Loans, LLC

Atlanta

GA

15375 15441 15467 15515

03/22/2002 03/22/2002 03/22/2002 03/04/2002

FEE FEE FEE B&R

$1000.

Mortgage Group, Inc. (The)

Columbia

SC

$1000. 04/01/200 Mortgage Network, Inc.

Danvers

MA

$1000.

Lighthouse Mortgage Services Co., Inc.

Huntingdon Valle

PA

$500. 03/18/200 R & R Mortgage Company, LLC

Douglas

GA

15657 15820 15820 15889

03/22/2002 03/12/2002 03/12/2002 03/12/2002

FEE B&R B&R FILE

$1000. $500. $500. $500.

NCS Mortgage Lending Company Allright Mortgage, Inc. Allright Mortgage, Inc. Fonseca Financial Services, Inc.

Norcross

GA

MABLETON

GA

MABLETON

GA

Stone Mountain

GA

16025 16035 16117 16131 16147

03/22/2002 FEE 03/22/2002 FEE 03/22/2002 FEE 03/22/2002 FEE 03/22/2002 FEE

$1000. $1000. $1000. $1000. $1000.

First Beneficial Mortgage Corporation

Charlotte

NC

1st Republic Mortgage, Inc. (New York)

Floral Park

NY

CreditCorp

Macon

GA

Interland Associates, Inc.

Savannah

GA

HomeSouth Mortgage Services, LLC

Hiram

GA

16179 03/01/2002 UL

$1000.

Covenant Capital Mortgage, Inc.

Douglasville

GA

16179 03/01/2002 FILE

$500.

Covenant Capital Mortgage, Inc.

Douglasville

GA

16179 03/01/2002 B&R

$500.

Covenant Capital Mortgage, Inc.

Douglasville

GA

16182 03/22/2002 FEE

$1000. 04/02/200 Popular Financial Services, LLC

Marlton

NJ

16232 16277 16281 16299

03/22/2002 03/22/2002 03/13/2002 03/12/2002

FEE FEE FILE UL

$1000. $1000.
$500. $1000.

03/26/200

Home Star Mortgage Services, L.L.C CyberLoanOfficer. Com, Inc T.L.H. Mortgage Corporation GE Mortgage Inc.

Montvale

NJ

Oak Brook Terrace

IL

Norcross

GA

Chamblee

GA

16299 03/12/2002 FILE

$500. 03/26/200 GE Mortgage Inc.

Chamblee

GA

16302 03/22/2002 FEE

$1000. 04/04/200 Boston Financial, Inc.

Marietta

GA

16308 03/22/2002 UL

$1000. 04/01/200 Select Mortgage Services, Inc.

Lilburn

GA

16308 03/22/2002 B&R

$500. 04/01/200 Select Mortgage Services, Inc.

Lilburn

GA

16312 03/27/2002 FILE

$500.

Georgia Mortgage Group, Inc.

Atlanta

GA

16333 03/22/2002 FEE

$1000.

Consumer Home Mortgage, Inc.

Melville

NY

16338 03/05/2002 B&R

$500. 04/01/200 Bridge Mortgage, Inc.

Villa Rica

GA

16443 03/22/2002 FEE

$1000.

HomeOne Credit Corp.

Houston

TX

16558 16585 16609 16627

03/22/2002 FEE 03/22/2002 FEE 03/22/2002 FEE 03/22/2002 FEE

$250.

Mountain States Mortgage Centers, Inc.

Sandy

UT

$1000. 04/01/200 Professional Mortgage Corporation

City of Industry

CA

$1000.

Equity Services, Inc.

Raleigh

NC

$250.

Liberty Funding Services, Inc.

Morristown

NJ

FINES ASSESSED IN MARCH 2002

ID#

ISSUE

DATE

FINE REASON

FINE

PAID DATE

COMPANY NAME

CITY

ST

16901 16911

03/22/2002 FEE 03/22/2002 FEE

$1000. $1000.

Bristol Home Mortgage Lending, LLC

Atlanta

GA

EliteAgents, Inc.

Woodstock

GA

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