Monthly summary of mortgage activities, Feb. 2004

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 2004
SUMMARY OF ACTIVITIES - MORTGAGE DIVISION
WEBSITE: www.ga.state.us/dbf
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LICENSE RENEWALS - FY 2005
The Department would like to thank those of you who filed your FY 2005 License Renewals on-line. The program works well, and with only one or two minor issues which had to be corrected, the program is a great timesaver and will be used again in future renewals. The last day to enter an application on-line is March 31, 2004.
Please also note, however, that renewal applications, whether completed on-line or in hard-copy format, are due by April 1, 2004. Failure to properly file the renewal application will result in a $300 late fine. As in prior years, and for all licensees, whether renewing on-line or by mail, all outstanding issues 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, 2004, will have their licenses expire, will have to cease operations, and will have to complete the license application process in full before being allowed to again operate a residential mortgage business.
The Department encourages licensees who qualify for the on-line renewal to take advantage of this process, which will reduce processing time, eliminate mailing concerns, ensure quality data entry, and allow the Department to offer more on-line services in the future. We would like to again thank all of you who have or will renew on-line for your participation.
REMINDER: Mortgage licensees and registrants are reminded that all employees must be compensated on a W-2 basis. Persons compensated on a 1099 basis are considered to be independent contractors and must be individually licensed if they engage in any residential mortgage related business practices. Licensees that compensate unlicensed individuals on a 1099 basis subject their license to administrative actions, including possible revocation.
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 form 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 unlicensed person. O.C.G.A. 7-1-1002.
AUDITED FINANCIAL STATEMENTS - Lenders and some Brokers have licenses which are dependent upon the filing of current audited financial statements with this office. Those whose audits more are 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.
PER LOAN FEES - "Per loan" fees for the second half of 2003 are due by March 1, 2004. If you hold a Georgia Residential Mortgage Lender license, you should have received a Reporting Form in January 2004. Please use this form to remit your fees. Contact the Department or use the internet if you did not receive your form. 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 will be 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; however, you should still send in the form reflecting "0" loans closed if that is the case. 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.
E- MAIL Worms
With the recent e-mail virus attacks, both the state's and the Department's Technology Departments have introduced stronger e-mail content filtering and blocking for incoming infected messages. As a result, many messages containing attachments have the attachments filtered, or often the entire message itself is deleted. If you are e-mailing the Department and you have not received a response in a day or two, please resend the message, being mindful of the SUBJECT line or other content that may be filtered by anti-virus programs.
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.
CEASE AND DESIST ORDERS - Issued
A & L Mortgage, Inc., Cochran, GA (license no. 17415) - Cease and Desist Order issued February 3, 2004 and became final on February 23, 2004.
Avery, Cedric, Snellville, GA - Cease and Desist Order issued January 12, 2004 and became final on February 11, 2004.
Bandele, Vernita, Austell, GA - Cease and Desist Order issued January 21, 2004 and became final on February 10, 2004.
Beasley, Tenesha, Lithonia, GA - Cease and Desist Order issued February 4, 2004 and became final on February 24, 2004.
Blue View Corporation, San Diego, CA - Cease and Desist Order issued December 5, 2003 and became final on January 4, 2004.
CBA Marketing & Financial Services, Snellville, GA - Cease and Desist Order issued January 12, 2004 and became final on February 11, 2004.
CJW Professional Services, Marietta, GA - Cease and Desist Order issued January 12, 2004 and became final on February 11, 2004.
Cole, Thomas, Snellville, GA - Cease and Desist Order issued January 12, 2004 and became final on February 11, 2004.
Cost, Carla, Ellenwood, GA - Cease and Desist Order issued February 3, 2004 and became final on February 23, 2004.
Farrar, Stephen, Atlanta, GA - Cease and Desist Order issued January 15, 2004 and became final on February 4, 2004.
Galosson, Theophilus J., Acworth, GA - Cease and Desist Order issued January 12, 2004 and became final on February 11, 2004.
Greater Atlanta Realty Financial Services, Inc., Atlanta, GA - Cease and Desist Order issued December 17, 2003 and became final on January 16, 2004.
Hairston, Donald A., Sr., Suwanee, GA - Cease and Desist Order issued December 31, 2003 and became final on January 30, 2004.
Lake, Steven, Columbus, GA - Cease and Desist Order issued January 21, 2004 and became final February 10, 2004.
Lamonte, Danny L. - Jewell Mortgage, Statesboro, GA (license no. 14665) - Cease and Desist Order issued
January 15, 2004 and became final on February 14, 2004.

Lee, Cecelia L. aka Cece Lee aka Cici Lee, Marietta, GA - Cease and Desist Order issued January 21, 2004 and became final on February 10, 2004.
McKenzie, Robert L.- McKenzie and Associates , Asburn, GA (license no. 5733) - Cease and Desist Order issued January 21, 2004 and became final on February 20, 2004.
Miracle Home Funding, Stone Mountain, GA (license no.13036) - Cease and Desist Order issued January 21, 2004 and became final on February 10, 2004.
Metro Mortgage Brokers of Athens, Inc., Athens, GA ( license no. 16123) - Cease and Desist Order issued January 21, 2004 and became final on February 15, 2004.
Mortgage International, Inc., Spokane, WA - Cease and Desist Order issued December 31,2003 and became final on January 30, 2004.
Murray, Leola, Lithia Springs, GA - Cease and Desist Order issued January 15, 2004 and became final on February 4, 2004.
Payne, David, Acworth, GA - Cease and Desist Order issued November 5, 2002 and became final on February 23, 2004.
Phillips, Vernal, Atlanta, GA - Cease and Desist Order issued December 17, 2003 and became final on January 16, 2004.
Registry Mortgage Group, Inc., Savannah, GA (license no. 16580) - Cease and Desist Order issued January 27, 2004 and became final on February 26, 2004.
Selph, Craig, McRae, GA - Cease and Desist issued February 3, 2004 and became final on February 23, 2004.
Selph, Donald A., McRae, GA - Cease and Desist issued February 3, 2004 and became final on February 23, 2004.
Selph, Ernest, McRae, GA - Cease and Desist issued February 3, 2004 and became final on February 23, 2004.
Selph Investments, Inc., McRae, GA - Cease and Desist Order issued February 3, 2004 and became final on February 23, 2004.
Selph Mobile Home Sales, McRae, GA - Cease and Desist Order issued February 3, 2004 and became final on February 23, 2004.
Simpson, Arnold A. Jr. - AMSI Mortgage, Marietta, GA (license no. 17023) - Cease and Desist Order issued January 14, 2004 and became final on February 12, 2004.
States Resource Corp., Omaha, NE - Cease and Desist Order issued November 5, 2003 and became final on February 2, 2004.
Walker, Cesar J., Marietta, GA - Cease and Desist Order issued January 12, 2004 and became final on February 11, 2004.
Western United Life Assurance Company, Spokane, WA - Cease and Desist Order issued December 31, 2003 and became final on January 30, 2004.

CEASE AND DESIST ORDER - Lifted
None
FINAL CONSENT ORDER
None
E-MAILING THE DEPARTMENT
The Department would like to encourage you to correspond with us using e-mail.
Providing written details in the e-mail regarding any questions or concerns you may have allows the Department to forward the request to the appropriate person who handles that area, and if sufficient details are provided in the request, that person can then more efficiently provide you an answer.
The e-mail address is dbfmort@dbf.state.ga.us
A detailed message which will be distributed to the proper individual will help us help you. In the event you still need additional information, please contact us by phone.
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 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/

LICENSEES/REGISTRANTS REVOKED, EXPIRED, SUSPENDED, WITHDRAWN OR DENIED IN FEBRUARY 2004

ID#
5733 6011 11919 12049 13622 14474 14856 16123

NAME
MCKENZIE & ASSOC ALLIANCE MTG CO HARBORSIDE FINL NETWORK AMER SOUTHERN FINL NEW START MTG INC AMER SUMMIT MTG CORP HEARTLAND MTG & INVST METRO MTG BKR ATHENS INC

CODE
BD LD LD BD BD BD BD BD

REVOKED

EXPIRED
02/20/2004

SUSPENDED

02/13/2004

02/15/2004

WITHDRAWN
02/04/2004 02/04/2004
02/09/2004 02/16/2004 02/06/2004

DENIED

LICENSEES/REGISTRANTS REVOKED, EXPIRED, SUSPENDED, WITHDRAWN OR DENIED IN FEBRUARY 2004

ID#
16580 16592 16622 17301

NAME
REGISTRY MTG GRP INC AMER SUMMIT LEND CORP DENALI FINL SVCS LP UNITED CAP MTG CORP

CODE
BD LD LD LD

REVOKED

EXPIRED
02/26/2004

SUSPENDED

WITHDRAWN
02/16/2004 02/01/2004 02/01/2004

DENIED

TOTAL: 12

FINES ASSESSED IN FEBRUARY 2004

ID#

ISSUE

DATE

FINE

PAID DATE

COMPANY NAME

CITY

ST

5671 5871 6063 6220 6295 6476 6819

02/23/2004 02/23/2004 02/23/2004 02/23/2004 02/23/2004 02/23/2004 02/26/2004

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

KLW, Inc

Macon

GA

Kingston Mortgage, Inc.

Atlanta

GA

Accent Mortgage Services, Inc.

Alpharetta

GA

Relocation Financial Services, Inc.

Norwell

MA

Jeffrey W. Sawyer

Macon

GA

Metwest Mortgage Services, Inc.

Spokane

WA

Complete Home Lending, Inc.

Jacksonville

FL

7410 7505 7505 11640

02/12/2004 02/04/2004 02/04/2004 02/23/2004

$1000. $2000. $1000. $1000.

03/04/2004 03/05/2004 03/05/2004

Bann-Cor Mortgage Diversified Financial Corporation Diversified Financial Corporation Mortgage Investors Group

Mission Viejo

CA

Macon

GA

Macon

GA

Knoxville

TN

11944

02/23/2004

$1000.

Independent Realty Capital Corporation

Anaheim

CA

11968

02/23/2004

$1000.

William R. Coffeen

Roswell

GA

12048

02/27/2004

$500.

Federated Financial Group, Inc.

Atlanta

GA

12048

02/27/2004

$1000.

Federated Financial Group, Inc.

Atlanta

GA

12048

02/27/2004

$500.

Federated Financial Group, Inc.

Atlanta

GA

13825

02/09/2004

$1000.

Community Home Lenders, Inc.

Atlanta

GA

13825

02/09/2004

$5000.

Community Home Lenders, Inc.

Atlanta

GA

14156

02/09/2004

$1000.

Morris Capital Management, Inc.

Alpharetta

GA

14396

02/05/2004

$1000.

AmeriCap Mortgage Corporation

Tucker

GA

14590

02/06/2004

$500.

03/02/2004 New Freedom Mortgage Corporation

Salt Lake City

UT

15152

02/23/2004

$1000.

Southern Mortgage Unlimited, Inc.

Tifton

GA

15317

02/23/2004

$1000.

Heathrow Funding, Inc.

Cumming

GA

15528

02/23/2004

$1000.

03/05/2004 1st Georgia Mortgage Funding, Inc.

Roswell

GA

17134

02/24/2004

$1000.

1st Preference Mortgage Corporation

Baltimore

MD

17327

02/26/2004

$1000.

South Central Mortgage & Home Loans, Inc.

Douglas

GA

17530

02/05/2004

$3000.

02/24/2004 First Discount Mortgage, LLC

Atlanta

GA

17530

02/05/2004

$1000.

02/24/2004 First Discount Mortgage, LLC

Atlanta

GA

17530

02/05/2004

$1000.

02/24/2004 First Discount Mortgage, LLC

Atlanta

GA

17530

02/05/2004

$1000.

02/24/2004 First Discount Mortgage, LLC

Atlanta

GA

FINES ASSESSED IN FEBRUARY 2004

ID#

ISSUE

DATE

FINE

PAID DATE

COMPANY NAME

CITY

ST

17910 18070 18148

02/23/2004 02/23/2004 02/23/2004

$1000. $1000. $1000.

Evergreen Investment Group, Inc.

Alpharetta

GA

Mortgage Group USA, Inc.

Indianapolis

IN

New Equity Financial Corporation

Louisville

KY

18255

02/23/2004

$1000.

Global Home Loans & Finance, Inc.

Melville

NY

18447

02/23/2004

$1000.

Oaktree Mortgage Group, Inc.

Durham

NC

FINE REASON

1 Licensee fined for prohibited acts 2 Licensees fined for 1099 employees 6 Licensees fined for violation of books & records 2 Licensees fined for acq. of 25% ownership without approval 4 Licensees fined for loan files not properly maintained

18 Licensees fined for audit filed late 2 Licensees fined for advertising violation
1 Licensee fined for failure to do background checks

ID#
14245 18654 18814 18917 19064 19105 19130 19190 18755 18848 18952 19032 19036 19140

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN FEBRUARY 2004

COMPANY NAME
Lovell, Hubbard & Assoc * Golden Age Advisors, LLC Angelyne Collins NexTag, Inc. MJ Processing, Inc. Edward Thompson Aberdeen Mortgage Company, MMBA Metro Mortgage, Inc. First Homeowner Mortgage Laurie M. Brand Pine State Financial, LLC Garden Gate Mortgage, Inc. PayRite Mortgage, LLC Mountain View Mortgage, Inc.

CITY
LAWRENCEVILLE ATLANTA LILBURN SAN MATEO LILBURN DECATUR JACKSONVILLE ATHENS ATLANTA DULUTH ATLANTA DAWSONVILLE RINGGOLD BALL GROUND

ST MB CODE
GA L GA B GA B CA B GA P GA B FL B GA B GA L GA B GA B GA B GA B GA B

ORIGINAL APPROVAL
01/15/1999 02/06/2004 02/06/2004 02/06/2004 02/06/2004 02/06/2004 02/06/2004 02/06/2004 02/13/2004 02/13/2004 02/13/2004 02/13/2004 02/13/2004 02/13/2004

RENEWAL
02/06/2004 02/06/2004 02/06/2004 02/06/2004 02/06/2004 02/06/2004 02/06/2004 02/06/2004 02/13/2004 02/13/2004 02/13/2004 02/13/2004 02/13/2004 02/13/2004

REINSTATED

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN FEBRUARY 2004

ID# COMPANY NAME

CITY

19169 18762 18899 19035 19047 19095 19098 19100 19118 19133 19141 19143 19148 19149 19157 19166 19171 19173 19175 19177 19184 19185 19186 16993 17418 19006 19015 19058 19097
19191 19192 19195 19196 12771
6233 17619 14157 17395

Woodwind Financial Group, LLC DMS Mortgage Company, LLC Karen Lynn Davis Southern Heritage Financial, LLC Janet S. Lynne Leroy A. Lester Buddy's Homes of Thomaston, Lenox Financial Mortgage Nam-May Wong Hae Sung Whang Betty Williams Harry Consumers First Mortgage, Inc. Anderson Endeavors, Inc. Barbara J. Winters William Goodwyn Ruppenthal Homequest Capital Funding, LLC Bryan Lamar Johnson Integrity Mortgage & Finance, Dianna Preece Greenlaw Carol Sue Hall William Lee Bennett, Jr. William Kendall James Anthony Louis Novoth Heritage Lending Grp, Inc. * First Commonwealth Mtg * LoanCare Servicing Center, Inc. Mary Noel Wilkins Tower Mortgage Corp. Structured Mortgage Services, First Continental Mortgage and Express Financial Services, Inc. Mortgage By Design, Inc. Edward J. Spirko, Jr. HomeSouth Mortgage Riverside Mortgage Corp. H.I.T.S. Financials, Inc. Capital One Mortgage Platinum Financial Group, LLC

DECATUR COLUMBUS TUCKER MARIETTA BUFORD LITHONIA THOMASTON ATLANTA NORCROSS CUMMING PINE MOUNTAIN ROSWELL PEACHTREE CITY DECATUR GAINESVILLE ALPHARETTA ADAIRSVILLE WINSTON DALLAS WRIGHTSVILLE EVANS MARIETTA PEACHTREE CITY EVANS LOUISVILLE NORFOLK CARTERSVILLE ATLANTA MARIETTA FAIRFIELD TEMPLE TERRACE SMYRNA SAVANNAH JACKSONVILLE NORCROSS EASTMAN DULUTH ATLANTA

ST MB CODE
GA B GA B GA B GA B GA P GA B GA B GA B GA B GA B GA B GA B GA B GA P GA B GA L GA B GA B GA P GA B GA B GA B GA B GA L KY L VA L GA B GA L GA B NJ L FL B GA B GA B FL L GA B GA B GA B GA B

ORIGINAL APPROVAL
02/13/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 01/11/2002 07/26/2002 02/27/2004 02/27/2004 02/27/2004 02/27/2004 02/27/2004 02/27/2004 02/27/2004 02/27/2004 08/29/1997 06/23/1993 09/27/2002 12/11/1998 06/14/2002

RENEWAL
02/13/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/20/2004 02/27/2004 02/27/2004 02/27/2004 02/27/2004 02/27/2004 02/27/2004 02/27/2004 02/27/2004 02/27/2004 02/27/2004 02/06/2004 02/20/2004 02/20/2004 02/27/2004 02/27/2004

REINSTATED
02/06/2004 02/20/2004 02/20/2004 02/27/2004 02/27/2004

TOTAL: 52

B = BROKER L = LENDER R = REGISTRANT

+ Downgrade Lender to Broker * Upgrade Broker to Lender # Upgrade Lender to Registrant Downgrade Registrant to Lender