Monthly summary of mortgage activities, June 2002

Monthly Summary of Mortgage Activities
Georgia Department of Banking and Finance
2990 Brandywine Road, Suite 200, Atlanta, GA 30341-5565
JUNE 2002 SUMMARY OF ACTIVITIES - MORTGAGE DIVISION
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**IMPORTANT NOTES**
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 first half of 2002 are due by September 1, 2002. 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 report. 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 - Renewal application forms were mailed February 7, 2002. A $300 late fine was assessed against licensees who failed to return the renewal application form prior to April 1, 2002. Licensees who do not complete the renewal process by June 30, 2002, will have their license expire and must cease activities covered by the Georgia Residential Mortgage Act. Lenders whose license will expire will have to divest of their Georgia residential loan portfolios. Former licensees seeking to reinstate an expired license must file a complete new application supported by updated information (including fingerprint cards) on the principals and payment of all outstanding fines and fees.
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!!ATTENTION LENDERS!!
SURVEY
Licensed lenders should expect to receive a GEORGIA FAIR LENDING ACT SURVEY in the near future. This survey will help the Department determine the industry's preparedness to comply with the Georgia Fair Lending Act which becomes effective October 1, 2002. All licensed lenders must respond to this survey. The Department anticipates mailing this survey no later than August 15, 2002. If you not receive your copy of the survey prior to September 1, 2002, you should contact the Department at 770-986-1136.
Georgia Fair Lending Act Questions, Inquiries, and Comments
The Governor signed the Georgia Fair Lending Act (HB 1361) into law on April 22, 2002. The law is effective October 1, 2002 and affects all lenders and brokers who make home loans in Georgia. The Department asks you to send your questions, inquiries and comments to us on the Georgia Fair Lending Act by June 15, 2002, so that we all can prepare for the October 1 implementation date for this law. You may send these comments by email to gafla@dbf.state.ga.us or regular mail or by fax. We would greatly appreciate you referencing that your correspondence regards the Georgia Fair Lending Act in order to expedite the Department's handling of this correspondence. The Department intends to compile a question and answer database from this correspondence that we will post on our website www.gadbf.org as soon as possible before October 1, 2002. Thanks in advance for your help with this matter.
NEW BOND REQUIREMENT BEGINNING 2002
A reminder of the bond term requirements for those companies who write bonds for Mortgage Brokers and Lenders in the State of Georgia.
In addition to the requirements contained in O.C.G.A. 7-1-1003.2 for a bond, Rule 80-11-4-.03 (2) of the Department states that beginning July 1, 2002, the bond requirement for a lender or broker license shall have a stated term of one year or less, and shall expire on June 30. A corporate surety or licensee that does not intend to renew a bond for a subsequent term shall notify the Department of such cancellation no later than June 1 of each year. Providing renewal policies to the Department in a timely manner will expedite the license renewal process each year.
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.
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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, 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.
2002 LEGISLATIVE CHANGES TO ARTICLE 13 GEORGIA RESIDENTIAL MORTGAGE ACT (GRMA)
Preliminary Overview of Law Changes
The following is a brief recap of the significant 2002 housekeeping bill changes which affected the GRMA. The provisions of the legislative changes become effective July 1, 2002. Code Section 7-1-1004
Changes involve the criminal background check requirement for principals and employees of a licensee. The 2002 legislative changes provide for broader definitions of officers and directors, to include policy making employees of a company. This will ensure extended regulatory oversight into the demonstrated financial responsibility, good character, and ethical conduct of all individuals having responsibility for the affairs of the company. In addition, the new law creates a requirement for licensees to conduct Georgia Crime Information Center (GCIC) criminal background checks on their "covered employees," which is defined in the legislation. These changes will require the submission of fingerprint cards on the policy making employees (in addition to officers and directors) with any new license application made after July 1, 2002.
7-1-1004 (a) -- Relating to Officials of the Company This section provides for a broader definition of who the controlling principals are in a company, so as to include all policy making persons under the provisions of the law, regardless of title. The Department will now expect background and financial information on all such persons. 7-1-1004 (d) -- Felonies
This code section pertains to the issuing or revoking of a license for any applicant or licensee who has been convicted of a felony involving moral turpitude. The legislative change added coverage to include "any individual who directs the affairs or establishes policy for the licensee," as noted above.
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7-1-1004 (e) -- Conviction Data

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The Department continues to be authorized to perform BACKGROUND CHECKS and submit

FINGERPRINT CARDS on all employees.

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The Department will handle background checks on directors, officers and policy makers. Fingerprint cards

shall be submitted to the Department on these people with the initial application or as needed. Fees for

processing shall also be submitted by applicants or licensees.

7-1-1004(f) New Section -- This section added the requirement that licensees and applicants obtain criminal background checks on covered employees. Covered employees are defined as those who work in this state and have authority to enter, delete, or verify any information on any mortgage loan application form or document.

Applicants and Licensees must:

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Obtain criminal background checks on covered employees. These will generally be submitted to a local

law enforcement agency and must be forwarded to and handled by the GCIC.

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If the GCIC report comes back with information indicating a possible felony or if the information indicates

the employee has a criminal record in any state other than Georgia, the employer shall submit to the

Departme n t two complete sets of fingerprints of the employee, any other required information, and

applicable investigation fees. This information will be submitted by the Department for further criminal

background investigation.

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The law provides for a probationary employment period for covered employees of 90 days from date of hire

during which the applicant or licensee can obtain satisfactory background data. If the employee is

determined to be a convicted felon, the applicant or licensee must immediately correct this violation of 7-

1-1004(d).

Code Section 7-1-1016 -- Advertising

This section was changed to indicate that any advertisements disseminated in the state will contain identifying information and now must include the License Number along with the name and office address already required, and added a provision allowing for an advertiser (licensee) who is located in more than one state to list Georgia as a state in which they are licensed, but the advertisement must include the identifying information noted above.

More Information

A copy of the legislation affecting the GRMA is contained on the web site at: http://www.ganet.org/dbf/mortgage forms.html.

CEASE AND DESIST ORDERS - Issued in June
Cobb Mortgage Professionals, Incorporated, Atlanta, GA - Cease and Desist Order issued 05-17-02 and became final 06-06-02.

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ID#
5633 5633 5867 5867 5867 5867 6405 6405 6405 6470 11531 11531 11531 11639 11778 11778 11778 11778 11778 11933 11933 12373 14280 14280 14738 15581 16520 17023

ISSUE DATE
06/19/2002 06/19/2002 06/03/2002 06/03/2002 06/03/2002 06/03/2002 06/19/2002 06/19/2002 06/19/2002 06/05/2002 06/19/2002 06/19/2002 06/19/2002 06/05/2002 06/25/2002 06/25/2002 06/25/2002 06/25/2002 06/25/2002 06/06/2002 06/06/2002 06/05/2002 06/06/2002 06/06/2002 06/18/2002 06/25/2002 06/05/2002 06/17/2002

FINE REASON
B&R FILE OTH OTH OTH OTH FILE B&R CIC REL FEL B&R FILE B&R 1013 1099 B&R B&R FILE UL FILE B&R B&R FILE 1099 NSF 1013 B&R

FINES ASSESSED IN JUNE 2002

FINE
$500. $1000.
$250. $250. $250. $250. $500. $500. $500. $250. $3000. $500. $500. $500. $2000. $4000. $500. $500. $6500. $2000. $500. $500. $500. $2500. $1000.
$35. $1000.
$500.

PAID DATE
06/18/2002 06/18/2002 06/18/2002 06/18/2002
06/19/2002
06/24/2002 06/19/2002 06/19/2002 06/25/2002

COMPANY NAME
Georgia Mortgage & Realty, Inc. Georgia Mortgage & Realty, Inc. Pine State Mortgage Corporation Pine State Mortgage Corporation Pine State Mortgage Corporation Pine State Mortgage Corporation Wall Street Capital Funding, Inc. Wall Street Capital Funding, Inc. Wall Street Capital Funding, Inc. Vanguard Mortgage Corporation Hometrust Mortgage , Inc. Hometrust Mortgage , Inc. Hometrust Mortgage , Inc. S.E. Universal Builders, Inc. Alante' Mortgage, Inc. Alante' Mortgage, Inc. Alante' Mortgage, Inc. Alante' Mortgage, Inc. Alante' Mortgage, Inc. World Lending Group, Inc. World Lending Group, Inc. Trinity Park Mortgage, Inc. Quality Mortgage Corporation Quality Mortgage Corporation Hunter Mortgage, Inc. Bond Street Mortgage, LLC Superior Lending, LLC Arnold A. Simpson, Jr.

CITY

ST

Sandy Springs

GA

Sandy Springs

GA

Atlanta

GA

Atlanta

GA

Atlanta

GA

Atlanta

GA

Conyers

GA

Conyers

GA

Conyers

GA

Atlanta

GA

Atlanta

GA

Atlanta

GA

Atlanta

GA

Charlotte

NC

Stone Mountain

GA

Stone Mountain

GA

Stone Mountain

GA

Stone Mountain

GA

Stone Mountain

GA

Duluth

GA

Duluth

GA

Decatur

GA

Atlanta

GA

Atlanta

GA

Aiken

SC

Tucker

GA

Roswell

GA

Marietta

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

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

ID#
5784 5932 6244 6500 7368 11896 11948 12613 13720 14229 14385 14523 14660 14689 14691 15017 15384 15789 15854 15893 15958 15986 16009 16281 16328 16859 16911 17159 17242

NAME
NATL MTG RESOURCES INC CHASE MANHATTAN MTG CORP ASSOC FIRST CAP MTG CORP MTG & INV SVCS CORP ALL STATES HOME IMPROV CO COASTAL MTG CORP SHELTER MTG CO LLC USA MTG SVCS RUCKER, KERRY V CONEY, EVELYN ARKHIPOV, IGOR D STRATEGY FINLS LLC SUMMIT HMS S GA INC MCCOY MTG LOANS GA INC MCDANIEL, MYRA B EZ MTG CO EASON, BOBBY R EQUITY FINL MTG INC GOODMAN, DANNY K WILLIAMS, DECARLOS P ROBERTSON, JOHN M ANDREWS, GEORGIA W VANARSDALE, JAN TLH MTG CORP CHARTERWEST MTG LLC EQUITY LENDERS INC ELITEAGENTS, INC JOAN E. MAYS FLICK MTG INVESTORS INC

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

REVOKED
06/11/2002 06/28/2002
06/04/2002
06/07/2002 06/21/2002 06/27/2002
06/21/2002

EXPIRED SUSPENDED
06/21/2002 07/01/2001

WITHDRAWN
06/25/2002 06/11/2002
06/26/2002 06/28/2002 06/26/2002 06/28/2002
06/27/2002 06/13/2002 06/03/2002
06/27/2002 06/26/2002 06/01/2002
06/27/2002 06/28/2002 06/27/2002 06/24/2002
06/28/2002 06/15/2002 06/19/2002 06/27/2002 06/14/2002 06/28/2002

DENIED

TOTAL: 29

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LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN JUNE 2002

ID# COMPANY NAME

CITY

ST MB CODE

16825 Mortgage Zone, Inc. (The)

WARRENSVILLE OH B

17204 American Home Estate Mortgage,

DULUTH

GA B

17266 Sanni Day Mortgage, Inc.

LITHONIA

GA B

17298 Heritage Loans, Inc.

ALPHARETTA

GA B

17302 Home Loan Center, Inc. (California) IRVINE

CA L

17306 Manufirst Mortgage, LLC

PERRY

GA L

17308 Southern Metro Mortgage, Inc.

KENNESAW

GA B

17315 American Republic Mortgage, Inc

CUMMING

GA B

17319 Savings Mortgage, Inc.

PHILADELPHIA

PA L

17321 Cole Mortgage Company

LAWRENCEVILLE GA B

17329 A Mortgage Solution Incorporated

COLUMBUS

GA B

17330 Joe Sledge

CLEVELAND

TN B

17336 Ayana Jawaun Thomas

ATLANTA

GA B

17337 Homeland Capital Group, LLC

COLUMBIA

MD L

17344 White Oak Financial Corp.

ATLANTA

GA B

17345 Kary Allen

DECATUR

GA B

17346 Chastain Financial Group, LLC

MARIETTA

GA B

17347 Ho Mortgage Corporation

ALPHARETTA

GA B

17349 Home Mortgage Depot, Inc.

ATLANTA

GA B

17351 Old South Mortgage, Inc.

WOODSTOCK

GA B

17382 Sherry Yvonne Trahan

DULUTH

GA B

17388 June Iris Johnson

DOUGLASVILLE GA B

17391 Judith Olshefski Finger

ATLANTA

GA B

17393 Virgil W. Knox, Sr.

ELLENWOOD

GA B

12244 First Mortgage Group, LLC *

MARIETTA

GA L

15393 Yates Insurance & Real Estate, Inc.

DUBLIN

GA B

15346 Iwayloan.com, Inc. *

HOUSTON

TX L

17211 Lending Group, Inc. (The)

JACKSONVILLE FL L

17296 First Interstate Financial Corp.

SHREWSBURY

NJ L

17301 United Capital Mortgage Corporation ATLANTA

GA L

17320 Financial Mortgage Solutions

CONYERS

GA B

17325 InTown Financing, Inc.

ATLANTA

GA B

17342 Metro Mortgage Group, Inc

KENNESAW

GA B

17354 Tuscany Mortgage Corporation

WOODSTOCK

GA B

17368 Homestar Financial Corporation

GAINESVILLE

GA B

17369 Melvin Lanus, Jr.

SUWANEE

GA B

17385 American Nationwide Mortgage

TAMPA

FL L

17386 Century Oak Financial, Inc.

ATLANTA

GA B

17389 Interstate Funding Corporation

COLUMBIA

MD B

17390 Masterkey Mortgage, LLC

COLLEGE PARK GA B

17394 American Integrity Loan, LLC

MARIETTA

GA B

ORIGINAL APPROVAL
06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 02/21/1997 02/18/2000 02/25/2000 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002

RENEWAL
06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/07/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002

REINSTATED

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LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN JUNE 2002

ID# COMPANY NAME

17395 17405 17413 17415 17417 17419 17428 17439
7079 17205 17263 17274 17304 17314 17361 17370 17374 17375 17376 17377 17380 17383 17392 17396 17399 17401 17449 12243 16302 14003 17275 17327 17365 17381 17408 17421 17435 17445 17465 14761

Platinum Financial Group, LLC Dream Maker Mortgage, LLC BallPark Mortgage, Inc. A & L Mortgage, Inc. Alvydas Sapranauskas Manna Financial Services, LLC Robert L. Harrison Carlton Taylor Peachtree Funding Grp, Inc. + Monarch Mortgage Funding, Inc. Roy Lee Dobson, Jr. First Source Financial USA, Inc. Stanley Emil Carson United Capital, Inc. Garrett Mortgage, Inc. Common Cents Mortgage, Inc. American Mortgage Brokers School, Angela Willis Michael R. Powell Kathryn P. Montcalm Kenneth A. Brown Rita Caldwell AAA Financial Associates, Inc. William R. Thompson George Casey, Sr. Dennie Rae Thomas Joseph T. Shockley Ohio Mtg Company, Inc. + Boston Financial, Inc. + Lending Connection, Inc. (The) Watermark Financial Partners, Inc. South Central Mortgage & Home A-Pac Mortgage Corporation ARI Financial Services, LLC Argent Mortgage Company, LLC Glenda Hewitt Fowler Alpha Financial Mortgage Services, First Atlantic Mortgage Services, Jeffrey Vann Smith Cities Home Mortgage Corp.

CITY
ALPHARETTA TWIN CITY DALTON COCHRAN ATLANTA WOODSTOCK DULUTH CONYERS SMYRNA JACKSONVILLE CENTERVILLE HENDERSON LITHONIA ALCOA ATLANTA MARIETTA CUMMING AUSTELL MARIETTA SMYRANA EATONTON MCDONOUGH DALLAS MARIETTA LITHONIA CALHOUN MARIETTA BROOKLYN MARIETTA COSTA MESA DENVER DOUGLAS MARIETTA AUSTELL ORANGE WARNER ACWORTH ST. DUBLIN MARIETTA

ST MB CODE
GA B GA B GA B GA B GA B GA B GA B GA B GA B FL B GA B NV B GA B TN B GA B GA B GA B GA B GA B GA B GA B GA B TX B GA B GA B GA B GA B OH B GA B CA L CO L GA B GA B GA B CA L GA B GA B FL B GA B GA B

ORIGINAL APPROVAL
06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 01/06/1995 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 03/28/1997 03/02/2001 06/28/2002 06/28/2002 06/28/2002 06/28/2002 06/28/2002 06/28/2002 06/28/2002 06/28/2002 06/28/2002 06/28/2002 06/25/1999

RENEWAL
06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/14/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/21/2002 06/28/2002 06/28/2002 06/28/2002 06/28/2002 06/28/2002 06/28/2002 06/28/2002 06/28/2002 06/28/2002 06/28/2002 06/28/2002 06/28/2002 06/14/2002

REINSTATED
06/14/2002

TOTAL: 81

B = BROKER L = LENDER R = REGISTRANT

+ Downgrade Lender to Broker * Upgrade Broker to Lender

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