Monthly Summary of Mortgage Activities Georgia Department of Banking and Finance 2990 Brandywine Road, Suite 200, Atlanta, GA 30341-5565 FOR THE PERIOD ENDING OCTOBER 2004 SUMMARY OF ACTIVITIES - MORTGAGE DIVISION WEB SITE: www.state.ga.us/dbf NEWS ITEMS ONLINE LICENSE RENEWALS - FY 2006 The ANNUAL LICENSE RENEWAL process will soon be underway, and beginning with this FY2006 licensing period, the Department will be going to an on-line ONLY web-based renewal application distribution. In addition, the on-line renewal SUBMISSION will be available to qualifying renewal applicants as it was for the FY2005 renewal period. Qualifying on-line applicants generally are those who do not have any outstanding issues, fees or fines, and who have a current surety bond or letter of credit as a means of qualifying for their license, not a qualifying minimum net worth. If you qualify for on-line completion and submission, an ACCESS CODE will be generated for you to use in accessing the on-line application system and will be provided in your renewal notice. Non-qualifying renewal applicants will be able to download an application containing their current license information for submission in hard-copy form to the Department. If you ONLY qualify for download of your current information for hardcopy submission, a DOWNLOAD CODE will be generated for you to use in accessing this on-line download system to obtain your personalized application forms, and the code will be provided in your renewal notice. Information regarding these websites and the ACCESS or DOWNLOAD codes will be provided to each licensee along with this year's renewal notification. The notification will be mailed in early February. Please contact the office at renewal@dbf.state.ga.us if you do not receive your renewal forms by February 18, 2005. If you have any problems accessing either the on-line renewal system or the downloadable application for your specific institution, please contact the Department at 770/986-1269 or e-mail us at renewals@dbf.state.ga.us. Renewals, whether completed on-line or in hard-copy format, are due by April 1, 2005. Failure to properly file the renewal application will result in a $300 late fine. As in prior years, and for all licensees whether submitting renewals on-line or by mail, all outstanding issues which exist or may arise, such as any 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, 2005, will have their licenses expire, and will have to cease operations. The Department hopes that all licensees find the new on-line renewal processes beneficial, and we especially encourage licensees who qualify for the on-line completion and submission of their renewal to take advantage of this process. By doing more of the process on-line, we will reduce processing time, eliminate mailing concerns, and ensure quality data entry and submission. Hopefully, a successful renewal program will enable the Department to provide more on-line functions regarding your license, such as address changes, fee payments, other license changes, etc., and we would like to thank you in advance for supporting the on-line automation efforts of the Department. BRANCH/BRANCH MANAGER FINE AMNESTY PROGRAM Continuing through December 31, 2004, the Department will be offering a one-time branch, branch manager, & branch relocation application/registration FINE amnesty program. AT ISSUE Licensees often fail to meet the branching provisions of the Georgia Residential Mortgage Act. Basically, branches, branch managers, relocations and other branch related changes must be reported. Failure to meet these obligations subjects the licensee to fines and/or other sanctions. Failure to meet these provisions of the law presents several problems for consumers, other members of the industry, and the Department. SOLUTION To reduce the reporting burden at renewal time and to get all new branches and branch managers approved and branch locations properly approved and reported prior to the renewal period, the Department is offering a one-time Branch Fine Amnesty Program for the registration of unreported branches and their managers, branch relocations, and changes in managers of previously approved branches. Under the amnesty program provisions, licensees would be able to apply for approval of any branch not previously approved, report changes in managers not previously approved, and report relocation of approved branches without paying the fine for previous failures to do so. However, it is important to note that the branch itself and the proposed manager, even if currently operating an unapproved branch, may NOT be approved. In those instances, the branch must be closed or the manager replaced with an acceptable manager. Failure to do so WILL then result in fines being assessed. The Department also strongly recommends that applicants for licensing, education provider approval and additional offices refrain from entering into any binding financial obligations until after written approval of any application submitted. The Department suggests that space lease or rental obligations entered into prior to Department approval be contingent upon Department approval. This might require the assistance of a qualified attorney. WHAT TO DO Under this program a licensee may submit applications for new branches, changes in branch managers, and relocations of existing branches with no questions asked. The applicant must, however, submit the appropriate application and applicable fees. The following guidelines will apply: Examinations: Examinations conducted during this period will cite violations of GRMA code sections related to unapproved branches and branch managers, unapproved branch manager changes, and unreported branch relocations, but no fines will be assessed. Applications and Fees: Completed branch applications must be submitted and all applicable fees for new branches will be assessed - $350 per branch application. Branch Managers submitted with the application will require background checks. Fingerprint card fees will only be paid if fingerprint cards are requested by the Department This fee is $30 per set of fingerprint cards (2 cards to a set). A Branch Manager Approval only application is also available. Managers: Proposed managers who have issues that prevent them from working in the industry, pursuant to the provisions of GRMA, will continue to be rejected as branch managers. This is a FINE amnesty program only. The other qualifying provisions of the Act are not being circumvented. Other Branch Application Fees: Branch relocation applications and change in branch management forms for any new branch managers of previously approved existing branches should be submitted for approval. However, there is no fee associated with these applications. Branches Only!!: Other applications, such as a change in principal officers of a licensee or changes in control, etc., DO NOT fall into this amnesty program. Fines for failure to report these changes will continue to be assessed. PROGRAM RUN DATES Only applications received between the dates of October 15, 2004 and received by close of business Friday, December 31, 2004 are eligible in order to avoid fines. Applications for new branches, change of address, or change in branch manager can be found on the web at www.state.ga.us/dbf/mortgage_forms.html. CONTACT US Should you have any questions about the program, the Department has set up an e-mail address for your convenience at dbfmort@dbf.state.ga.us. In addition, you may call the Mortgage Division at 770/986-5035. NOTICE OF FINAL RULEMAKING: SEPTEMBER 3, 2004 On September 3, 2004, the Department of Banking and Finance published a notice of final rulemaking regarding the adoption of new and amended rules. The rules were adopted on Monday, August 30, 2004 and were filed with the Secretary of State on September 1, 2004, and are therefore effective 20 days following or Tuesday, September 21, 2004. You may view or download a copy of the final rules from our web site: http://www.gadbf.org/docs/FinalRegsAll932004.doc WEB SITES & DOMAIN NAME REGISTRATION Remember, all licensees must register their web site domain names with the Department as a d/b/a name if it is different than the name(s) licensed/registered with the Department. A web site name is a d/b/a name and as such must be registered with the Department pursuant to the requirements of O.C.G.A Section 7-1-1006 (d) which states that "No licensee may conduct business under any name other than that designated in the license." Further, "advertisement" as defined in Department Regulation 80-11-1-.02 (f), means material used or intended to be used to induce the public to apply for a mortgage loan. Web sites are considered advertisements, and must contain the name(s), license number, and an office address which conforms with the name, license number, and office address on record with the Department. Web sites must also contain the words "Georgia Residential Mortgage Licensee" or list Georgia as a state in the which the licensee is licensed to do business if the licensee is licensed in more than one state. Any unregistered d/b/a/ name which comes to the attention of the Department will subject the licensee to a minimum $500 fine. For proper registration of domain names with the Department, the names must be registered as d/b/a (trade) names with the Superior Court Clerk in the Georgia county/counties where or from which business is conducted. If there is no Georgia location, d/b/a names should be registered with the appropriate authority in the licensee's home state. The recorded registration document(s) and surety bond or bond rider, if applicable, should be sent to the Department. After the appropriate documents are received and there are no conflicts with approved registered d/b/a names of other licensees, the web site domain name d/b/a will be added to the licensee's Department record and displayed on the Department web site. The form to be used to apply for the approval of the d/b/a name with the Department is available on the Department's web site at http://www.ganet.org/dbf/pdfdoc/DBARegis_R0804.pdf. Please use this form and submit it with the required documentation as noted in the instructions. If you have additional questions regarding domain registration, please do not hesitate to contact the Mortgage Division. OTHER REGULATORY ISSUES NOTICE OF PLAN TESTING The Department of Banking and Finance will be performing testing of our Business Resumption and Disaster Recovery Plan on November 17, 2004. Part of the testing will involve sending an emergency alert, via e-mail, to our licensees. If you have signed up to received bulletins and other important announcements from the Department via e-mail, you may receive a test e-mail on November 17th. It will come from the dbfcorp@dbf.state.ga.us mailbox, identified as a test. If you receive an e-mail on that date from the dbfcorp mailbox, please do not reply to the e-mail. BRANCH INFORMATION Licensee and Registrant additional offices (branches) are now listed on the Department's web site. After conducting an online search at http://www.ganet.org/dbf/mortgage.html, select "Approved Branch Offices" for a list of that licensee's/registrant's approved offices. Should you find any information that needs updating, please contact the Department at (770) 986-1136. REAL ESTATE BROKERS AND UNLAWFUL RESIDENTIAL MORTGAGE ACTIVITIES Although a real estate broker may refer consumers to a mortgage broker or mortgage lender, Georgia law prohibits a real estate broker from accepting any fee or compensation in any form whatsoever for directly or indirectly negotiating, placing, or finding a mortgage for a Georgia consumer. O.C.G.A. 7-1-1001 (4). In order for a real estate broker to receive compensation legally for such services, that real estate broker must first obtain a mortgage broker or mortgage lender license or demonstrate that he, she, or it is exempt from GRMA's licensing requirements. Compensating a real estate broker for such services will subject a Georgia licensed mortgage broker or mortgage lender to revocation procedures as such conduct constitutes engaging in residential mortgage activities with an unlicensed person. O.C.G.A. 7-1-1002. VERIFYING LICENSED ENTITIES Rule 80-11-4-.05 of the Mortgage Division Rules states, in part, that it is the licensee's responsibility to "know" that it is conducting business with a licensed entity. You run the risk of conducting business with an unlicensed entity if you do not verify the license. The fine for "dealing with unlicensed persons" under Rule 80-11-3-.01 (4) is $1,000 per transaction and your license shall be subject to suspension or revocation. Anyone who purchases, sells, places for processing or transfers a mortgage loan or loan application to or from a person who is required to be licensed but is not properly licensed will be fined. You can check the license status of any licensee by going to the Department's web site at http://www.ganet.org/dbf/mortgage.html. From there you can check by entering the licensee's name, license number, or city, or leave the selection box blank and you will get a complete listing of licensees. There is also an option to download the entire list into an Excel spreadsheet. 2005 HOLIDAY SCHEDULE In accordance with O.C.G.A. 1-4-1, Governor Sonny Perdue proclaimed the following dates as public and legal holidays for the year 2005. 2005 HOLIDAY New Year's Day Martin Luther King, Jr.'s Birthday Robert E. Lee's Birthday Washington's Birthday Confederate Memorial Day Memorial Day Independence Day Labor Day Columbus Day Veterans' Day Thanksgiving Day (Alternate observance of Lee's Birthday) Christmas Day (Alternate observance of Christmas Day) (Alternative observance of Washington's Birthday) DAY/DATE January 1 will be observed Monday, January 3 Monday, January 17 Monday, January 19 Will be observed on Friday, November 25 Tuesday, February 22 Will be observed on Tuesday, December 27 Monday, April 25 Monday, May 30 Monday, July 4 Monday, September5 Monday, October 10 Friday, November 11 Thursday, November 24 Friday, November 25 Sunday, December 25 Monday, December 26 Tuesday, December 27 CEASE AND DESIST ORDERS - Issued American General Financial Services, Inc. (DE), Evansville, IN (license no. 5704) - Cease and Desist Order issued August 19, 2004 and became final on October 12, 2004. Citizen Mortgage Finance Corporation, Inc., Decatur, GA (license no. 19345) - Cease and Desist Order issued October 8, 2004 and became final on October 29, 2004. Intermax Mortgage, LLC, Atlanta, GA (license no. 16057) - Cease and Desist Order issued October 6, 2004 and became final on October 27, 2004. Peach State Funding, LLC, Atlanta, GA (license no. 18326) - Cease and Desist Order issued October 7, 2004 and became final on October 31, 2004. CEASE AND DESIST ORDERS - Lifted Johnson, Lisa, College Park, GA - Cease and Desist Order issued August 17, 2004 was LIFTED on October 4, 2004. Sheriff, Wanda J. Clayton, Cumming, GA - Cease and Desist Order issued February 1, 2004 was LIFTED on October 4, 2004. Williams, Sabrina, Decatur, GA - Cease and Desist Order issued June 28, 2004 was LIFTED on October 12, 2004. FINAL CONSENT ORDERS - Issued Brown, Chesley, Austell, GA - Final Consent Order issued October 12, 2004 and became final on October 12, 2004. Long, Edward, Jr., Austell, GA - Final Consent Order issued October 12, 2004 and became final on October 12, 2004. Common Cents Mortgage, Inc., Austell, GA (license no. 17370) - Final Consent Order issued October 12, 2004 and became final on October 12, 2004. FINE PUBLICATION Information regarding fines assessed against a specific licensee and against whom there are no pending administrative actions, is available on an individual licensee basis by submitting a written request to the following e-mail address: dbfmort@dbf.state.ga.us FINE REASON 3 Licensees fined for Prohibited Acts 5 Licensees fined for Advertising Violations 8 Licensees fined for Audit filed late 7 Licensees fined for Books and Records 4 Licensees fined for Background Check Violations 1 Licensee fined for an Unapproved Branch 4 Licensees fined for Loan Files not properly maintained 1 Licensee fined for GaFLA violations 1 Licensee fined for Relocation of office without notice 1 Licensee fined for Unapproved Branch Manager 1 Licensee fined for 1099 Employees LICENSEES/REGISTRANTS REVOKED, EXPIRED, SUSPENDED, WITHDRAWN OR DENIED IN OCTOBER 2004 ID# 12905 13292 13953 14333 15412 16441 16586 17328 18326 18782 NAME NANTUCKET MTG INC KNOX FINL GRP LLC ACCELERATED MTG FND ACADEMY FINL SVCS LLC C&A MTG WEATHERLY, BARRY L COASTAL LENDING CORP 1ST CITS MTG CORP PEACH STATE FUNDING SKYLINE CAP MTG INC CODE BD BD BD LD BD BD BD BD BD BD REVOKED 10/27/2004 10/22/2004 EXPIRED SUSPENDED 10/31/2004 WITHDRAWN 10/19/2004 10/04/2004 10/04/2004 10/18/2004 10/01/2004 10/12/2004 10/15/2004 DENIED TOTAL: 10 LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN OCTOBER 2004 ID# COMPANY NAME CITY ST MB ORIGINAL RENEWAL REINSTATED CODE APPROVAL 19545 Aames Investment Corporation LOS ANGELES CA L 10/01/2004 10/01/2004 19599 The Southern Financial LAWRENCEVILLE GA B 10/01/2004 10/01/2004 19606 Rickey Acie Allen DULUTH GA B 10/01/2004 10/01/2004 19683 Stately Mortgage, Inc. DALTON GA B 10/01/2004 10/01/2004 19735 1st Midtown Mortgage, Inc. LAWRENCEVILLE GA B 10/01/2004 10/01/2004 19758 Evergreen Mortgage, Inc. BRENTWOOD TN L 10/01/2004 10/01/2004 19763 Financial Mortgage Funding, ORLANDO FL B 10/01/2004 10/01/2004 19764 Guardian First Funding Group, HUNTINGTON NY B 10/01/2004 10/01/2004 19771 Elaine Patricia Bunch COLUMBUS GA B 10/01/2004 10/01/2004 17006 First American Finl * TUCKER GA L 01/18/2002 10/08/2004 19386 Nationwide Mortgage RANCHO MIRAGE CA L 10/08/2004 10/08/2004 19582 Magellan Capital Mortgage, DRAPER UT B 10/08/2004 10/08/2004 19626 Southern Home Mortgage DOUGLASVILLE GA P 10/08/2004 10/08/2004 19634 Matisse, Inc. DORAVILLE GA B 10/08/2004 10/08/2004 19636 Merizon Mortgage, Inc. STONE GA B 10/08/2004 10/08/2004 19637 New Day Financial, LLC COLUMBIA MD L 10/08/2004 10/08/2004 19640 Southwestern Mortgage Co. ATLANTA GA B 10/08/2004 10/08/2004 19642 Global Mortgage, Inc. CLEARWATER FL B 10/08/2004 10/08/2004 19646 A-1 Mortgage Brokers, LLC TEMPLE GA B 10/08/2004 10/08/2004 19661 Stephen Ryan Austin MARIETTA GA B 10/08/2004 10/08/2004 19670 Loanology, LLC MURRAY UT L 10/08/2004 10/08/2004 19680 Donna Marie Valentino DULUTH GA B 10/08/2004 10/08/2004 19684 Honey Mae, Inc. SHERMAN OAKS CA L 10/08/2004 10/08/2004 19742 Simple Mortgage Services, Inc. NORCROSS GA B 10/08/2004 10/08/2004 19757 Priez Corp. SNELLVILLE GA B 10/08/2004 10/08/2004 19770 Continental Mortgage NORCROSS GA B 10/08/2004 10/08/2004 19802 Seth-Alan Mortgage Brokers, NORCROSS GA B 10/08/2004 10/08/2004 19550 Century Mortgage Company LOUISVILLE KY L 10/15/2004 10/15/2004 19584 Assured Lending Corporation CHERRY HILL NJ L 10/15/2004 10/15/2004 19595 Crosscountry Mortgage, Inc. CLEVELAND OH B 10/15/2004 10/15/2004 19663 iHomeowners, Inc. CALABASAS CA B 10/15/2004 10/15/2004 19692 New America Mortgage, Inc. SHARPSBURG GA B 10/15/2004 10/15/2004 19760 Cornerstone Mortgage DULUTH GA B 10/15/2004 10/15/2004 19786 Citinet Mortgage ATLANTA GA B 10/15/2004 10/15/2004 19788 Lincoln Capital Advisors, LLC ALPHARETTA GA L 10/15/2004 10/15/2004 18961 Barclays Bank, PLC NEW YORK NY L 10/22/2004 10/22/2004 19726 Double Tree Mortgage, Inc. CARTERSVILLE GA B 10/22/2004 10/22/2004 19728 First Platinum Mortgage, Inc. ALPHARETTA GA B 10/22/2004 10/22/2004 19733 Curtis J. Miller TUCKER GA B 10/22/2004 10/22/2004 19739 Dakota Financial Group, Inc. MARIETTA GA B 10/22/2004 10/22/2004 19630 Elite Investments, Inc. MABLETON GA B 10/29/2004 10/29/2004 19745 Ecitymortgage, LLC HOUSTON TX B 10/29/2004 10/29/2004 19759 1st American Mortgage, Inc. VIENNA VA L 10/29/2004 10/29/2004 19796 Citiwide Group Inc. LANDOVER MD L 10/29/2004 10/29/2004 19800 Bertram A. Asadi COLLEGE PARK GA B 10/29/2004 10/29/2004 19806 Yvonne Carter Green COLUMBUS GA B 10/29/2004 10/29/2004 LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN OCTOBER 2004 ID# COMPANY NAME CITY 19808 19810 19812 19816 19817 19827 19832 16434 15685 12048 DreamCrafters Mortgage, LLC Uptick Financial Services, Inc. Serious Solution Mortgages, Riccardo Ferranti Steven Max Taylor The Executive Mortgage Prime Realty & Mortgage, Inc. 25 Hours A Day, Inc Amenity Mortgage, Inc. Federated Financial Group, DULUTH DECATUR SOUTHFIELD ALPHARETTA CARTERSVILLE ATLANTA HAMPTON OMAHA ATLANTA ATLANTA ST MB ORIGINAL RENEWAL REINSTATED CODE APPROVAL GA B 10/29/2004 10/29/2004 GA B 10/29/2004 10/29/2004 MI B 10/29/2004 10/29/2004 GA B 10/29/2004 10/29/2004 GA B 10/29/2004 10/29/2004 GA B 10/29/2004 10/29/2004 GA B 10/29/2004 10/29/2004 NE B 05/18/2001 10/01/2004 10/01/2004 GA B 05/26/2000 10/08/2004 10/08/2004 GA B 12/13/1996 10/15/2004 10/15/2004 TOTAL: 56 B = BROKER L = LENDER R = REGISTRANT * Upgrade Broker to Lender + Downgrade Lender to Broker # Upgrade Lender to Registrant Downgrade Registrant to Lender