Monthly summary of mortgage activities, Jan. 2005

Monthly Summary of Mortgage Activities
Georgia Department of Banking and Finance
2990 Brandywine Road, Suite 200, Atlanta, GA 30341-5565
FOR THE PERIOD ENDING JANUARY 2005
SUMMARY OF ACTIVITIES - MORTGAGE DIVISION
WEB SITE: www.state.ga.us/dbf
NEWS ITEMS
ONLINE LICENSE RENEWALS - FY 2006 The annual license renewal notices were mailed February 8th and 9th . Remember that ALL licensees will be able to submit the application, the renewal fees, and any associated fines on line by means of ACH payments, and we are happy to announce that credit card payments (Visa and MasterCard) will be accepted. The actual renewal application WAS NOT mailed with the notice. If you are unable to access the on-line renewal application, a paper copy of the appropriate application type will be available for download from the Department's website at http://www.ganet.org/dbf/mortgage_forms.html .
Your User ID and Password has been provided in your individual renewal notice. ALL licensees will access, update, and correct any errors regarding their license information, complete the Calendar Year 2004 operating information on the Renewal Schedules, and make fee and fine payments to complete the process and submit the renewal application, on-line. After review of submitted information, if there are any other qualifying issues or renewal requirements, the licensee will be notified of these requirements by e-mail or fax only.
It is important to remember that the additional information required must be provided before the renewal can be approved, therefore it is important to provide correct e-mail or fax numbers. Applicants who have no qualifying conditions to their renewal should receive no further notice from the Department after completion of the application until they receive their license.
Applicants who are unable to utilize the ACH or credit card payment methods may still complete their application review and correction on-line, and then print the required identification pages of the application for hard copy submission to the Department, along with the check payment of required fees and any outstanding fines. You will be prompted regarding the payment method you wish to use. If there are any other outstanding issues, you will then be notified by e-mail or fax.
Updated or changed surety bonds and new audits must be submitted under separate cover to ensure that proper delivery of these items has been made.
IMPORTANT NOTE - Renewals are due by the close of business April 1, 2005. Renewals postmarked, stamped, received electronically or hand delivered after April 1, 2005 are considered late renewals and the licensee will be fined $300. For all licensees, whether submitting renewals on-line or by mail, all outstanding issues which exist

or may arise prior to the license issue date, such as any new fines, fees, stale audits, complaint issues, 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 on-line system will not be available after April 1, 2005.
Please contact the office at renewal@dbf.state.ga.us if you do not receive your renewal notification by February 18, 2005. If you have any problems accessing the on-line renewal system for your specific institution, please contact the Department at 770/986-1269 or at the e-mail address noted above.
The Department hopes that all licensees find the new on-line renewal process beneficial, and we would like to thank you in advance for supporting the on-line automation efforts of the Department.
BROKER RENEWAL INFORMATION: NET WORTH RESTRICTIONS
The qualifying financial requirements for brokers changed with the July 2004 legislative changes. In order to meet the financial requirements, brokers must have in place a $50,000 surety bond or a letter of credit in the amount of $50,000 or the broker must meet the HUD requirements for an approved correspondent broker/lender status. This requires that the broker/processor meet the net worth requirements established by HUD. HUD renewal applicants must provide evidence of their HUD approved status, and provide a certified financial audit which meets the qualifying guidelines in GRMA. Non-HUD approved brokers/processors may not qualify for renewal using their net worth.
APPLICATIONS AND BOND FORMS
Laws, rules and regulations may be changed from time-to-time. When changes do occur, they may require changes in various applications and forms that must be submitted to the Department.
Submission of outdated applications and forms may delay the processing of your request. Please be sure to use applications and forms that are current when submitted. Up-to-date applications and forms may be downloaded from the Department's web site at:
http://www.ganet.org/dbf/mortgage_forms.html
OTHER REGULATORY ISSUES & INFORMATION
JUDGMENT/CLAIM NOTIFICATION
As a reminder to licensees, Section 7-1-1007 of the Georgia Residential Mortgage Act, dealing with certain actions brought against licensees, states the following:
"(a) A licensee shall give notice to the department by registered or certified mail or statutory overnight delivery of any action which may be brought against it by any creditor or borrower where such action is brought under this article, involves a claim against the bond filed with the department for the purposes of compliance with Code Section 7-1-1003 or 7-1-1004, or involves a claim for damages in excess of $25,000.00 for a broker and $250,000.00 for a lender and of any judgment which may be entered against it by any creditor or any borrower or prospective borrower, with details sufficient to identify the action or judgment, within 30 days after the commencement of any such action or the entry of any such judgment."

The Department has recently obtained information regarding judgments and claims from public sources or other regulators, not from the licensee. It is important to remember that such notification is required by law, and any licensee subject to such claim or judgment must report details to the Department according to the guidelines noted above.
PREQUALIFYING/LOCK-INS
It has become apparent that many consumers are confusing "pre-qualifying" for a loan with being "pre-approved" for a specific loan amount, and as a result of their confusion, assume that when the actual 1003 application is taken for a house with a different value than their pre-qualification maximum, that they have been misled or duped by the broker or lender. It is important that licensees stress to the consumer that the purpose of the prequalification, when a mortgage company tells a buyer in advance of the formal application approximately how much money the buyer can afford to borrow, may be different from the actual loan approval for a specific loan amount at a specific rate after verifications have been made.
The Department has also received numerous complaints regarding "lock-ins", which unless the lock-in is in writing, is not binding, and borrowers need to be made aware of and clear on this fact.
The Department takes seriously consumer complaints regarding instances where it appears that a borrower has been led to believe that they 1) had a locked-in rate for a specific period of time and 2) had been approved for a loan amount and rate that was only a preliminary prequalification to aid them in their search for a home.
Allegations of misrepresentations will be investigated by the Department.
CEASE AND DESIST ORDERS - Issued
Akanni, Paul Dayo, Jonesboro, GA - Cease and Desist Order issued December 9, 2004 became final on January 9, 2005.
Blackwood, Deirdre, Lithonia, GA - Cease and Desist Order issued January 5, 2005 became final on Janaury 25, 2005.
CFN Finance, Inc., Duluth, GA (license no. 14565) - Cease and Desist Order issued December 16, 2004 became final on January 17, 2005.
Downey, Melody, Atlanta, GA - Cease and Desist Order issued January 4, 2005 became final January 24, 2005.
Financial Advisors, Albany, NY - Cease and Desist Order issued December 6, 2004 became final on January 6, 2005.
Hardin, Genethie, Augusta, GA - Cease and Desist Order issued December 16, 2004 became final on January 16, 2005.
Lenox Financial Mortgage, LLC, Atlanta, GA (license no. 19100) - Cease and Desist Order issued January 1, 2005 became final on January 22, 2005.
Mortgage Central Finance, Inc., Atlanta, GA (license no. 12599) - Cease and Desist issued December 28, 2004 and became final on January 26, 2005.
Stuart, Michael, Fayetteville, GA - Cease and Desist Order issued December 22, 2004 became final on January 22, 2005.

Tibbs, Cheryl, Stone Mountain, GA - Cease and Desist Order issued December 9, 2004 became final on January 9, 2005.

CEASE AND DESIST ORDERS - Lifted None
FINAL CONSENT ORDERS - Issued Cotton, Joann, Lithonia, GA - Consent Order issued January 13, 2005 became final on January 13, 2005. Crystal Mortgage, Lawrenceville, GA (license no. 15263) - Consent Order issued January 14, 2005 became final January 14, 2005. Edwards, Deborah J., Powder Springs, GA - Consent Order issued January14, 2005 became final January 14, 2005. FST Financial Mortgage, LLC, Atlanta, GA (license no. 17567) - Consent Order issued January 26, 2005 became final January 26, 2005. Folayan, Toyeen, Lithonia, GA - Consent Order issued January 26, 2005 became final January 26, 2005.

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

1 Licensee fined for 1099 Employees 1 Licensee fined for Prohibited Acts 5 Licensees fined for Advertising Violations 2 Licensees fined for Audit filed late 2 Licensees fined for Background Check Violations 10 Licensees fined for Books and Records 1 Employee under C&D or revocation

1 Employment of a Felon 4 Licensees fined for Loan files not properly
maintained 2 Licensees fined for Unapproved Branch Manager
1 Licensee fined for Unapproved Change in Management
1 Licensee fined for doing business w/ unlicensed entity
3 Licensees fined for Miscellaneous Acts

LICENSEES/REGISTRANTS REVOKED, EXPIRED, SUSPENDED, WITHDRAWN OR DENIED IN JANUARY 2005

ID#
6236 7166 12599 12868 14565 14605 15263 15624 17043 17325 17567 18123 18125 18411

NAME
TARA MTG INC OLYMPIA MTG CORP MTG CENTRAL FIN INC WORLD WIDE FINL SVCS INC CFN FIN INC WINTAP MTG INC CRYSTAL MTG INC RATEONE HM LOANS LLC CENTRAL FUNDING INC INTOWN FINANCING INC FST FINL MTG LLC HOMEWISE FINL SVCS INC JW MANAGEMENT INC EXECUTIVE HM LENDING LP

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

REVOKED
01/27/2005
01/27/2005 01/26/2005

EXPIRED

SUSPENDED

01/26/2005 01/17/2005

WITHDRAWN
01/20/2005 01/13/2005
01/20/2005 01/14/2005 01/27/2005 01/20/2005
01/11/2005 01/20/2005 01/27/2005

DENIED

TOTAL: 14 14

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN JANUARY 2005

ID# COMPANY NAME

CITY

19716 19743 19862 19881 19889 19904 19923 19946 19948 19961 19997 19998 20001 20002 20014 20021 20024 20031 18852 15865 19654 19813 19883 19894

PHM Financial Incorporated Integrity Mortgage & Lending Willie L. Flynn, III Mylor Financial Group, Inc. Lime Financial Services, Ltd. Gloriann Jean Stock Amanda L. Sinclair Alliance Mortgage Solutions, Inc. Southern Mortgage Brokers AmeriHome Mortgage Corporation Georgia Premier Lending Gregory Lynn Miller Duke Mortgage, LLC Superior Mortgage Services, LLC Novation Mortgage, LLC Perry Jay Betts Samuel Augustus Shepard, III MZ Financial Services, Inc. Eastern Residential Mtg, LLC * Alegis Group, L. P. Group One Mortgage, Inc. Advantage First Mortgage Corp. Oricon Funding Corporation Ingomar Limited Partnership

CENTENNIAL MABLETON DULUTH MISSION HILLS LAKE OSWEGO SMYRNA CUMMING ALPHARETTA LAWRENCEVILLE BUFORD NORCROSS ELLENWOOD EAST POINT COLUMBUS MARIETTA RINGGOLD FAIRBURN NORCROSS COLUMBIA GREENVILLE JUPITER ACWORTH CHARLOTTE EUREKA

ST MB CODE

OH L GA B GA B CA L OR L

GA B GA P GA B GA B

GA B GA B GA B GA B

GA B GA B GA B GA B

GA B

MD L

SC L

FL

L

GA B NC L CA L

ORIGINAL APPROVAL
01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 11/21/2003 01/14/2005 01/14/2005 01/14/2005 01/14/2005 01/14/2005

RENEWAL
01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/07/2005 01/14/2005 01/14/2005 01/14/2005 01/14/2005 01/14/2005 01/14/2005

REINSTATED

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN JANUARY 2005

ID# COMPANY NAME

CITY

19902 19903 19922 19930 19939 19958 19959 19960 19964 20040 17403 19843 19951 19974 20013 20017 20018 20027 20030 20033 20036 20043 20053 20054 20056 20095 19897 19985 20003 20019 20038 20077 20082 20085 20099 20108 11599 11961 15652

Alaska Eastern Partners, A Alaska Seaboard Partners Yu Fang Li American Internet Mortgage, Inc. Nationwide Realty & Mortgage, SignPost Mortgage, Inc. Covenant Lending Solutions, LLC South United Mortgage, Corp. Loan One, LLC DCG Home Loans, Inc. Mortgage Strategies Grp, * Ace Mortgage Funding, * Prime Capital Group, LLC RSA Mortgage Solutions, Inc. Pacific West Lending, Inc. Danny F. Dukes Sidney Page Huff, III Johnny Albert Davis Melvin Broadnax Real Capital, LLC Leonard Lester Mortgage Central Corporation A & C Mortgage, LLC NetWork Lending Solutions, LLC Eastern Mortgage Co. Olde Savannah Mortgage United Securities Alliance, Inc. Brenda Knight Sanders Stephen B. Ditto Residential Mortgage Associates, Bridgette Hammond American Mainstreet Mortgage, Georgia First American Mortgage Tammy Lorraine Jeffcoat Edward Bernard Seay Consumer Home Lending, LLC Total Mortgage Lending, Inc. P & H Mortgage Services, Inc. People's Choice Home Loan, Inc.

EUREKA EUREKA DULUTH SAN DIEGO MARIETTA ACWORTH FAYETTEVILLE SANFORD SMYRNA LAGUNA HILLS BOCA RATON INDIANAPOLIS ATLANTA AMHERST CARLSBAD CANTON CANTON LOUISVILLE MACON COLLEGE PARK HAWKINSVILLE LAWRENCEVILLE LILBURN ATLANTA CUMMING SAVANNAH CHARLOTTE SUWANEE BLAIRSVILLE DENVER PEMBROKE NORCROSS ATLANTA DOUGLASVILLE LILBURN DECATUR MONROE LAWRENCEVILLE IRVINE

ST MB CODE

CA L CA L GA B CA L

GA B

GA B

GA B

FL

B

GA B

CA B

FL

L

IN

L

GA L

NY B CA L GA B GA B

GA B GA B GA B GA B

GA B GA B GA L GA B

GA B NC L GA B GA B

CO B GA B GA B GA B

GA B GA B GA B GA B GA B

CA L

ORIGINAL APPROVAL
01/14/2005 01/14/2005 01/14/2005 01/14/2005 01/14/2005 01/14/2005 01/14/2005 01/14/2005 01/14/2005 01/14/2005 07/26/2002 11/12/2004 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/28/2005 01/28/2005 01/28/2005 01/28/2005 01/28/2005 01/28/2005 01/28/2005 01/28/2005 01/28/2005 01/28/2005 05/10/1996 11/08/1996 05/05/2000

RENEWAL
01/14/2005 01/14/2005 01/14/2005 01/14/2005 01/14/2005 01/14/2005 01/14/2005 01/14/2005 01/14/2005 01/14/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/21/2005 01/28/2005 01/28/2005 01/28/2005 01/28/2005 01/28/2005 01/28/2005 01/28/2005 01/28/2005 01/28/2005 01/28/2005 01/07/2005 01/07/2005 01/07/2005

REINSTATED
01/07/2005 01/07/2005 01/07/2005

TOTAL: 63

B = BROKER L = LENDER R = REGISTRANT

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