Monthly summary of mortgage activities, Aug. 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 AUGUST 2004
SUMMARY OF ACTIVITIES - MORTGAGE DIVISION
WEB SITE: www.state.ga.us/dbf
NEWS ITEMS
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
HIRING OF FELONS - THE "TOP STEP" PROGRAM It has come to the attention of the Department that there is a bonding program offered by the Federal Government known as the "Top Step Program". The purpose of the program is to encourage employers to hire persons who have previous felony convictions. If the convicted individual qualifies for this program, they can obtain a bond that would basically cover the employer against dishonest acts which might be committed by the felon while in the employment of the company. While this a federal program, it is administered through the State Department of Labor (DOL).
Please be advised that this is strictly a voluntary program for employers. In a particular instance, one of the local county DOL offices mistakenly informed a mortgage licensee that this was a mandatory hiring program, and that they had to hire someone who had qualified under the program and who had otherwise qualified for mortgage industry employment.
It was confirmed with an official with the DOL that the program is offered to encourage the employment of qualified convicted persons by various industries and businesses as a part of a rehabilitation program. It is not, and is generally not presented by the DOL as, a required hiring program.
It is very important that all licensees understand that, for purposes of the Georgia Residential Mortgage Act (GRMA), the employment of felons by licensees is prohibited in the mortgage business, unless those so convicted have received the remedies provided for in the act under O.C.G.A. 7-1-1004 et al. Therefore, unless a person had received the proper remedies, use of the Top Step Program alone without the remedies is NOT allowed under GRMA. Use of the program by the employer as an additional incentive to hire a person convicted of a felony who has received the proper remedies would be allowed.

In the event that a licensee is approached by anyone utilizing the Top Step Program, the only way that licensees can legally hire those individuals convicted of felonies in the mortgage business is for the individual to have received one of the remedies as noted. The DOL has been made aware of this legal requirement, and was asked to relay the information to their county office personnel so that the use of this program will not be routinely reported to our licensees as a requirement.
MANUFACTURED HOME DEALER GUIDELINES The Department has simplified the guidelines for determining when a manufactured home dealer must have a mortgage broker or lender license in an effort to prevent future inadvertent violations of the licensing requirements of the Georgia Residential Mortgage Act. In essence, manufactured home dealers are not required to have a license if they are only providing customers a mortgage loan application. However, if the manufactured home dealer performs duties beyond this such as (1) assisting the customer in the completion of the application, (2) mailing or delivering the application to the lender on the customer's behalf, (3) receiving compensation for loan referrals, or (4) performing any other duties that are defined as being a Mortgage Broker or Lender under 7-1-1000 (11) and (12), then a mortgage broker or lender license is required.
WEB SITES As reported last month, 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." In order to have it designated, the name must be registered. This registration is to assist the consumer in identifying licensed entities, further protect the consumer from dealing with unlicensed entities and, in addition, to also assist the Department in verifying licensed entities with those persons who, in the course of their dealings with a licensee, need to verify names with the Department.
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. The web site may not use a name for the licensee which has not been approved as a "d/b/a" name for that licensee. Please note: Since domain names do not contain spaces, it is understood that the licensee name "Your Best Mortgage" will be "yourbestmortgage.com (net, etc.) on the web. A domain name such as this does not have to be registered as a d/b/a name. However, "ybm.com", "yourbest.net", "bestmortgage.com", and similar variations on the licensed name would require registration.
DOMAIN NAME REGISTRATION Domain names, if different from the license name, 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 other registered d/b/a names, 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
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.
CEASE AND DESIST ORDERS - Issued
Alonzo, Wayne, Stone Mountain, GA - Cease and Desist Order issued July 28, 2004 and became final on August 28, 2004.
Cantrell-Nisen, Barbara Ann, Waycross, GA - Cease and Desist Order issued July 12, 2004 and became final August 12, 2004.
Clark, Karen, Stone Mountain, GA - Cease and Desist Order issued July 28, 2004 and became final on August 18, 2004.
Complete Mortgage Solutions, Lawrenceville, GA - Cease and Desist Order issued July 27, 2004 and became final on August 27, 2004.
First Choice Mortgage, Inc., Augusta, GA (license no. 5819) - Cease and Desist Order issued July 21, 2004 and

became final on August 11, 2004.
Express Financial Services, Inc., Temple Terrace, FL (license no. 19192) - Cease and Desist Order issued July 30, 2004 and became final on August 22, 2004.
Don T. Golden dba Golden Mortgage Company, Savannah, GA (license no. 6563) - Cease and Desist Order issued August 24, 2004 and became final on August 31, 2004.
Heaton Trust (The) (Charles & Victoria Heaton) - Cease and Desist Order issued July 12, 2004 and became final on August 12, 2004.
Hilton Mortgage Corporation II, Columbus, GA (license no. 6320) - Cease and Desist Order issued July 21, 2004 and became final on August 11, 2004.
Knotts Lending c/o Lewis Farlow, Dublin, GA - Cease and Desist Order issued July 28, 2004 and became final on August 28, 2004.
Lexington Mortgage Capitol Corporation, Inc. dba Lexington Mortgage Co. (license no. 18273) - Cease and Desist Order issued July 26, 2004 and became final on August 16, 2004.
Praise Mortgages, Inc., Atlanta, GA (license no. 19102) - Cease and Desist Order issued July 19, 2004 and became final on August 19, 2004.
Residential Mortgage Corporation dba Orion Mortgage, Norcross, GA (license no. 6855) - Cease and Desist Order issued July 19, 2004 and became final on August 19, 2004.
Star Mark Mortgage and Investments, Athens, GA (license no. 17350) - Cease and Desist Order issued July 20, 2004 and became final on August 19, 2004.
FINE PUBLICATION
Beginning with this reporting period, the Department will no longer publish individual fines. Information regarding fines assessed against a specific licensee, against whom there are no pending administrative actions, will be available on an individual licensee basis by submitting a written request to the following e-mail address: dbfmort@dbf.state.ga.us
In summary, fine information will no longer be available for licensees on the Department's web site and, further, the Department will no longer offer lists of all fines assessed against all licensees. Only requests for fine information about a specific licensee will be addressed, and information will only then be provided if there are no pending administrative actions.

FINE SUMMARY FOR AUGUST

1 Licensee fined for Prohibited Acts 2 Licensees fined for Advertising violations 6 Licensees fined for Background Check Violations 5 Licensees fined for Books & Records 2 Licensees fined for Unapproved Branch 2 Licensees fined for Acq. of 25% ownership without approval 1 Licensee fined for Change-In-Management violation 4 Licensees fined for Employment of a Felon

3 Licensees fined for Loan Files not properly maintained
1 Licensee fined for GaFLA violations 2 Licensees fined for an Unapproved Branch
Manager 1 Licensee fined for doing business with
unlicensed entity 1 Licensee fined for Miscellaneous/Other

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

ID#
5625 6212 6563 6855 11813 12945 13495 15662 17350 18344 19102 19192

NAME
UNITED MTG INVESTORS RIVIERA MTG CO GOLDEN, DON T RES MTG CORP WORLD FIN CORP GA WAYNE FRIER HM CTR STONEBRIDGE MTG CO HOMEBOUND MTG INC STAR MARK MTG & INVS BRICKSTONE MTG LLC PRAISE MTG INC EXPRESS FINL SVCS INC

CODE
LD BD BD BD LD BD BD LD BD BD BD BD

REVOKED
08/24/2004

EXPIRED
08/31/2004 08/19/2004
08/19/2004 08/19/2004 08/22/2004

SUSPENDED

WITHDRAWN
08/02/2004 08/24/2004
08/05/2004
08/02/2004 08/02/2004
08/09/2004

DENIED

TOTAL: 12

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN AUGUST 2004

ID# COMPANY NAME

CITY

ST MB ORIGINAL RENEWAL REINSTATED CODE APPROVAL

18050 Jandair Mortgages, Inc. +

CUMMING

GA B

04/04/2003 08/06/2004

19150 RFA, LLC a LLC of WI * 19268 United Mortgage Resources

NEWPORT SNELLVILLE

CA L GA P

04/23/2004 08/06/2004

08/06/2004 08/06/2004

19412 FMT Mortgage of America, LLC FORT MYERS

FL B

08/06/2004 08/06/2004

19420 Results Mortgage Services,

CUMMING

GA B

08/06/2004 08/06/2004

19445 Gateway Mortgage, LLC

STOCKBRIDGE

GA B

08/06/2004 08/06/2004

19453 Premium Capital Funding, LLC JERICHO

NY L

08/06/2004 08/06/2004

19465 Old Republic Financial

CHICAGO

IL L

08/06/2004 08/06/2004

19496 Catalina Home Loans, Inc.

NORCROSS

GA B

08/06/2004 08/06/2004

19512 Home Point Processing, LLC

NORCROSS

GA B

08/06/2004 08/06/2004

19535 AccessAmerica Mortgage, LLC DACULA

GA B

08/06/2004 08/06/2004

19541 Initia Technologies, LLC

ATLANTA

GA B

08/06/2004 08/06/2004

19542 Cross Plains Mortgage, LLC

DALTON

GA B

08/06/2004 08/06/2004

19543 Jai Shree Krishna, Inc.

LAWRENCEVILLE GA B

08/06/2004 08/06/2004

19546 Jose Eguinardo Fraire

CALHOUN

GA B

08/06/2004 08/06/2004

19552 Residential Mortgage Loan

DES PLAINES

IL B

08/06/2004 08/06/2004

19555 Woodmen Mortgage Services, OMAHA

NE L

08/06/2004 08/06/2004

19557 Gary Alan Dotson, Jr.

HAMPTON

GA B

08/06/2004 08/06/2004

19635 AGIT Financial, LLC

MARIETTA

GA B

08/06/2004 08/06/2004

19313 Griffin Financial Mortgage, LLC FORT WORTH

TX B

08/13/2004 08/13/2004

19501 First Continental Mortgage, Ltd. HOUSTON

TX L

08/13/2004 08/13/2004

19507 Patrick J. Fincher

LAWRENCEVILLE GA B

08/13/2004 08/13/2004

19536 The Mortgage Manor, Inc.

DALLAS

GA B

08/13/2004 08/13/2004

19556 Building Generations Mortgage, AUSTELL

GA B

08/13/2004 08/13/2004

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN AUGUST 2004

ID# COMPANY NAME

18908 19495 19537 19547 19560 19565 19612 19568 19570 19571 19577 19578 19581 19583 19588 19589 19590 19594 19596 19659 19660 14516 16744 16897

Flat Fee Home Loans, Inc. Fairon & Associates, Inc. Premier Mortgage Plus, Inc. Park Avenue Mortgage, LLC BBMD Partners, Inc. Northland Funding Corp. Coastal Georgia Mortgage, Inc. Statewide Funding, Inc. Franklin Mortgage Corporation Azeem Technologies, Inc. CGB AGRI Financial Services, Lifetime Mortgage Solutions, America's Home Loan Allied Mortgage & Financial Palmetto South Mortgage Progressive Lending Corp. Youa Moua Wesley Harrison Newell Allegiant Financial Services, William Ches Smith, IV John P. Taliaferro, Jr. Americorp Credit Corporation C R Mortgage Solutions, Inc. Kenneth Frederick Bohan

CITY

ST

ST.

FL

IRVINE

CA

COLUMBUS

GA

HIRAM

GA

ATLANTA

GA

MERRICK

NY

SAVANNAH

GA

NORCROSS

GA

LAWRENCEVILLE GA

LILBURN

GA

LOUISVILLE

KY

SUGAR HILL

GA

MARIETTA

GA

HOLLYWOOD

FL

WEST COLUMBIA SC

ALPHARETTA

GA

DACULA

GA

ALPHARETTA

GA

PEACHTREE CITY GA

AUGUSTA

GA

SUWANEE

GA

TEMECULA

CA

ATLANTA

GA

SUWANEE

GA

MB CODE
B L B B B B B B B B L B B L L B B B B B B L B B

ORIGINAL APPROVAL
08/20/2004 08/20/2004 08/20/2004 08/20/2004 08/20/2004 08/20/2004 08/20/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 04/23/1999 09/14/2001 11/09/2001

RENEWAL
08/20/2004 08/20/2004 08/20/2004 08/20/2004 08/20/2004 08/20/2004 08/20/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/27/2004 08/13/2004 08/20/2004 08/20/2004

REINSTATED
08/13/2004 08/20/2004 08/20/2004

TOTAL: 48

B = BROKER L = LENDER R = REGISTRANT

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