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