Monthly Summary of Mortgage Activities Georgia Department of Banking and Finance 2990 Brandywine Road, Suite 200, Atlanta, GA 30341-5565 FOR THE PERIOD ENDING FEBRUARY 2003 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/ PER LOAN FEES - "Per loan" fees for the second half of 2002 were due by March 1, 2003. If you hold a Georgia Residential Mortgage Lender license, you should have received a Reporting Form in January 2003. Please use this form to remit your fees. Contact the Department or use the internet form if you did not receive your copy. 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. Failure to pay the fees may result in non-renewal of your license. The ANNUAL LICENSE RENEWAL process is now underway. Renewal application forms for the fiscal year 2004 mortgage licenses were distributed beginning February 7, 2003. A $300 late fine will be assessed against licensees who fail to return the renewal application form prior to April 1, 2003. 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, 2003, 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. GEORGIA FAIR LENDING ACT This law has been amended. You may view the current changes by going to the following website: http://www.legis.state.ga.us/legis/2003_04/versions/sb53_SB_53_HCSFA_9.htm MORTGAGE APPLICATION The Mortgage Division has revised several application forms including Change In Management, Change In Address, and Change In Control. Please refer to the following website to review the current forms: http://www.ganet.org/dbf/mortgage_forms.html . FINGERPRINT CARDS Please remember that all persons submitting fingerprint cards to the Department should obtain the blank cards directly from the Department. One set consists of TWO cards. The fee for processing these cards is $30. This fee should be submitted to the Department in the form of a money order or certified check. Also, it is important that the fingerprinting process be performed by trained law enforcement personnel. We have had many "self prepared" cards rejected by the GCIC and the FBI because the prints had avoidable problems (such as smudging)and as a result could not be processed. Cards which cannot be processed must be redone and reprocessed through the law enforcement system, which extends the processing time for the application. Also remember that when having fingerprints taken, after the fingerprints are on the card, the card should be protected to insure that smudging does not occur due to contact with other objects. SURETY BONDS AND RENEWALS Beginning July 1, 2002, the law was changed regarding the surety bond. In addition to the requirements contained in O.C.G.A. 7-1-1003.2 for a bond, the bond requirement for any lender or broker license utilizing a bond is such that the bond shall have a stated term of one year or less, and shall expire on June 30 of each year. Please remember that in order to renew your license a current bond must be in effect. The bonding companies will notify the Department of any cancellations 30 days prior to the expiration date fo the bond. If the Department received a cancellation notice regarding any licensee in June, the license will NOT be renewed unless the Department receives notice of reinstatement of the bond prior to expiration. Licensees using bonds are encouraged to review the status of their bond with their bonding company to facilitate the renewal of their license and prevent the issuance of a revocation notice. LOAN PROCESSORS The Department is considering a change in its policy regarding third party, independent mortgage loan processors. If the Department makes the changes under consideration, third party, independent mortgage loan processors will 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 Georgia Fair Lending Act specifically addresses loan processors and includes "processing" in its definition of `creditor'. Additionally, loan processing now involves considerably more consumer contact. This exclusion may no longer be permitted by the Georgia Residential Mortgage Act (GRMA). Third party, independent mortgage loan processors may need to be licensed or qualify for the employee exemption permitted under GRMA. 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. 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, North Carolina, Pennsylvania, South Carolina, and Texas have the requirement that brokers have a physical place of business in their home state. CEASE AND DESIST ORDERS - Issued Megamerica Mortgage Group, Inc. (license no. 12718) San Antonio, TX - Cease and Desist Order issued 0220-03 and became final 02-20-03. Randles, Michael D., Stone Mountain, GA - Cease and Desist Order issued 03-02-01 and became final 04-0101. CEASE AND DESIST ORDER - Lifted Weaver, Otis (Equity Mortgage Funding, Inc. - license no. 13406) Atlanta, GA - Cease and Desist Order issued 07-10-02 was LIFTED on 02-03-03. FINAL CONSENT ORDER None LICENSEES/REGISTRANTS REVOKED, EXPIRED, SUSPENDED, WITHDRAWN OR DENIED IN FEBRUARY 2003 ID# 5991 7101 12137 12365 12718 13019 13042 13805 13916 14315 14412 14490 14912 NAME SWAINSBORO FINANCIAL AEGIS MTG CORP YARBROUGH, RHONDA 1ST CHOICE FIN SVCS LTD MEGAMERICA MTG GRP INC OLYMPUS SERVICING LP UNITED FINL MTG CORP E & Y MTG CORP INC SURETY MTG INC AFFORDABLE REMODELING WAYNE FRIER HM CTR BIL-RAY ALUMINUM SIDING C ALLSTATE MTG BROKERS INC CODE LD LD BD BD BD LD LD BD LD BD BD BD BD REVOKED 02/13/2003 02/18/2003 02/18/2003 EXPIRED SUSPENDED WITHDRAWN 02/18/2003 02/11/2003 02/06/2003 02/25/2003 02/28/2003 02/20/2003 02/06/2003 02/03/2003 02/19/2003 02/06/2003 DENIED LICENSEES/REGISTRANTS REVOKED, EXPIRED, SUSPENDED, WITHDRAWN OR DENIED IN FEBRUARY 2003 ID# 15261 16303 16307 16389 16450 16585 16912 16995 17777 NAME CODE HOMEWISE ENTERPRISES INC BD RLI MTG SVCS LLC LD ROYAL CROWN MTG INC LD DJM MTG BD YOUR MORTGAGE LENDER LD PROFESSIONAL MTG CORP LD EWEB FUNDING GRP LLC LD NORTHSTAR FINL SVCS INC BD CAPITOL COMMERCE MTG CO. LD REVOKED 02/27/2003 02/03/2003 02/11/2003 EXPIRED SUSPENDED WITHDRAWN 02/04/2003 02/10/2003 02/03/2003 02/01/2003 02/10/2003 02/21/2003 DENIED TOTAL: 22 LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN FEBRUARY 2003 ID# 13971 15746 17790 17956 17964 18035 18036 18104 5813 16361 17904 18068 18086 18103 18013 18030 18096 15380 18067 18074 18075 18087 18127 18137 18141 18142 18145 COMPANY NAME CITY ST Edward D. Jones & Co., LP # ST. LOUIS MO Quincy Fortson ALBANY GA Nations Investment, Inc. FLORISSANT MO Suk Hyoun Yoon DULUTH GA Jason Keith Rogers KENNESAW GA Peggy Jo Massey KENNESAW GA Richard E. Schmidt LILBURN GA Future Unlimited, LLC CUMMING GA First Realty Mortgage + ROSWELL GA Hogarty Funding Group, Inc. * PLEASANTON CA Easy Mortgage Brokers, LLC COLUMBUS GA Solid Rock Mortgage, Inc. MONROE GA Storehouse Mortgage, LLC STONE MOUNTAIN GA Good Quest Financial DULUTH GA F & T Mortgage, Inc. ADDISON TX Horizon Financial Consultants, SAVANNAH GA 1st Nations Mortgage CHARLOTTESVILLE VA All Credit Mtg Lenders, LLC + DUNWOODY GA Buckingham Mortgage ROCKVILLE MD Green Oak Mortgage, LLC HOSCHTON GA Pinnacle Financial Solutions, Inc. ATLANTA, GA MortgageLoanz.com, Inc. CHAMBLEE GA Mattie Sue Callahan JASPER GA James H. Spinks WARNER ROBINS GA Charles Edward Thompson,Jr. MACON GA Michael Flynn Browning CORDELE GA Primacy Mortgage, Inc. DULUTH GA MB CODE R B B B B B B B B L B B B B B B B B B B B B B B B B B ORIGINAL APPROVAL 10/09/1998 02/07/2003 02/07/2003 02/07/2003 02/07/2003 02/07/2003 02/07/2003 02/07/2003 06/18/1993 04/13/2001 02/14/2003 02/14/2003 02/14/2003 02/14/2003 02/21/2003 02/21/2003 02/21/2003 03/24/2000 02/28/2003 02/28/2003 02/28/2003 02/28/2003 02/28/2003 02/28/2003 02/28/2003 02/28/2003 02/28/2003 RENEWAL 02/07/2003 02/07/2003 02/07/2003 02/07/2003 02/07/2003 02/07/2003 02/07/2003 02/07/2003 02/14/2003 02/14/2003 02/14/2003 02/14/2003 02/14/2003 02/14/2003 02/21/2003 02/21/2003 02/21/2003 02/28/2003 02/28/2003 02/28/2003 02/28/2003 02/28/2003 02/28/2003 02/28/2003 02/28/2003 02/28/2003 02/28/2003 REINSTATED LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN FEBRUARY 2003 ID# COMPANY NAME CITY 18146 13356 15152 Jay Barr Burton & Burton Mortgage, Inc. Southern Mtg Unlimited, Inc. * WOODSTOCK TALLAHASSEE TIFTON ST MB CODE GA B FL B GA L ORIGINAL APPROVAL 02/28/2003 03/27/1998 11/12/1999 RENEWAL 02/28/2003 02/21/2003 02/21/2003 REINSTATED 02/21/2003 02/21/2003 TOTAL: 30 B = BROKER L = LENDER R = REGISTRANT + Downgrade Lender to Broker * Upgrade Broker to Lender # Upgrade Broker to Registrant FINES ASSESSED IN FEBRUARY 2003 ID# ISSUE DATE FINE FINE REASON PAID DATE COMPANY NAME CITY ST 5661 02/11/2003 B&R $500. Central Mortgage Corporation Smyrna GA 5818 02/27/2003 B&R $500. Cash Credit Corporation (Iowa) Austell GA 5818 02/27/2003 FILE $500. Cash Credit Corporation (Iowa) Austell GA 6199 02/19/2003 BR $250. Invest America Mortgage Corp. Atlanta GA 6199 6578 6842 7233 02/19/2003 02/13/2003 02/13/2003 02/24/2003 MGR FILE FILE MGR $250. Invest America Mortgage Corp. Atlanta GA $500. 02/26/200 Southeast Mortgage of Georgia, Inc. Lawrenceville GA $500. 02/19/200 Real Estate Depot, Inc., The Atlanta GA $750. Morgan Stanley DW, Inc. New York NY 7399 7399 7399 7403 7486 12121 12121 02/13/2003 02/13/2003 02/13/2003 02/21/2003 02/11/2003 02/27/2003 02/27/2003 FEL B&R FILE B&R B&R BR MGR $1000. $500. $500. $500. $500. $250. $250. First Georgia Mortgage & Financial Newnan GA First Georgia Mortgage & Financial Newnan GA First Georgia Mortgage & Financial Newnan GA Gene Austin Augusta GA Taylor Construction Company, Inc. Dunwoody GA Associates Housing Finance, LLC Irving TX Associates Housing Finance, LLC Irving TX 12252 02/05/2003 CIC $500. 02/10/200 American Mortgage Services, Inc. Norcross GA 13087 02/17/2003 FILE $500. Square One Mortgage, LLC Lithonia GA 13167 02/27/2003 B&R $500. EEWC, Inc. Tucker GA 13167 02/27/2003 1013 $1000. EEWC, Inc. Tucker GA 13406 02/04/2003 B&R $500. Equity Mortgage Funding Group, Inc. Atlanta GA 13406 02/04/2003 B&R $500. Equity Mortgage Funding Group, Inc. Atlanta GA 13406 02/04/2003 FILE $500. Equity Mortgage Funding Group, Inc. Atlanta GA 13802 02/04/2003 NSF $350. Innovative Mortgage Solutions, LLC Norcross GA 13802 13964 13964 14888 14888 02/04/2003 02/19/2003 02/19/2003 02/13/2003 02/13/2003 NSF CIC CIC B&R B&R $25. $500. $500. $500. $500. Innovative Mortgage Solutions, LLC Norcross GA Northland Services, Inc. Duluth GA Northland Services, Inc. Duluth GA Federated First Mortgage Corporation Hilton Head SC Federated First Mortgage Corporation Hilton Head SC 14985 02/27/2003 B&R $500. American Mortgage & Financial Mauldin SC 14985 02/27/2003 BR $250. American Mortgage & Financial Mauldin SC FINES ASSESSED IN FEBRUARY 2003 ID# ISSUE DATE FINE FINE REASON PAID DATE COMPANY NAME CITY ST 14985 02/27/2003 MGR $250. American Mortgage & Financial Mauldin SC 14985 02/27/2003 B&R $500. American Mortgage & Financial Mauldin SC 14985 15144 15380 16543 02/27/2003 02/24/2003 02/21/2003 02/13/2003 CIC B&R NSF BR $500. $500. $25. $250. American Mortgage & Financial Mauldin SC Myarb Realty Corp. Ozone Park NY All Credit Mortgage Lenders, LLC College Park GA Professional Mortgage Network, Inc. Marietta GA FINE REASON 1013 1099 B&R BR CD CIC EMP FEE FEL Prohibited Acts 1099 employees 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 Employment of a felon FILE LAR MGR NSF REL REN UL OTH Loan files not properly maintained Late filing Written Annual Report Unapproved branch managers Check returned for insufficient funds Relocation of office without notice Renewal filed late Doing business with unlicensed entity Miscellaneous other