Monthly summary of mortgage activities, June 2005

Monthly Summary of Mortgage Activities
Georgia Department of Banking & Finance

Inside this Issue

2

FY 2006 Renewal Period Closed

2

Arrests Continue Georgia Residential

Mortgage Fraud Act

2

Proposed Regulation Changes

3

Renewal Survey Results In

3

Office Relocations

4

$6.50 "Per Loan" Fee

4

Interest Only Mortgages

4

Mortgage Division Contacts

5

Administrative Actions and Issues

2990 Brandywine Road Suite 200
Atlanta, GA 30341 Phone: (770) 986-1269
Fax: (770) 986-1029

FOR THE PERIOD ENDING
June 2005
SUMMARY OF ACTIVITIES
MORTGAGE DIVISION
WEB SITE: www.state.ga.us/dbf

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News Items
FY 2006 Renewal Period Closed
The FY 2006 license renewal application period ended June 30, 2005. Licenses not renewed by that date are now considered to be expired.
No new mortgage business may be conducted under an expired license!
In order to conduct GRMA business, the expired license must now be reinstated.
TO REINSTATE:
Applicants must complete and submit a "REINSTATEMENT APPLICATION". This is an option within the license application package. All required documentation noted in the application MUST be submitted, along with the reinstatement fee of $250, the license fee for the type of license held, and any outstanding assessed fines.
The Renewal Application Form WILL NOT be accepted to reinstate a license.
Once the reinstatement application is submitted, the licensee will be contacted if additional information is required. All fines and fees must be paid before a license can be reinstated.

ARRESTS CONTINUE GEORGIA RESIDENTIAL MORTGAGE FRAUD ACT
Arrests continue under the newly passed Georgia Residential Mortgage Fraud Act, Senate Bill 100, O. C. G. A. 16-8-103 et al.
The Georgia Bureau of Investigation and DeKalb County Police charged six more individuals under the Georgia Residential Mortgage Fraud Act in late June 2005 in connection with an alleged scheme to flip the home of a former professional baseball player for a $2.1 million profit.
According to authorities, the home was purchased for $2.8 million. An hour after the sale closed, an attempt was made to sell the home for $4.9 million through the same law firm based on a false appraisal and other documents prepared by the attorneys.
According to authorities, the first purchaser of the home was an employee of the purchaser on the second sale.
The mortgage company notified authorities after discussing the increased appraisal value with the real estate agent handling the sale. The Georgia Bureau of Investigation set up a sting posing both as power of attorney for the ball player (who was not involved in the scheme) and as a loan officer during the transactions.

FY2005 PROPOSED REGULATION CHANGES AFFECTING THE MORTGAGE INDUSTRY

Pursuant to the provisions of the

Georgia

Administrative

Procedures Act, Official Code of

Georgia Annotated (O.C.G.A.)

Chapter 50-13 and by authority

of O.C.G.A. 7-1-61, O.C.G.A.

7-1-663; O.C.G.A. 7-1-1012,

and other cited statutes, the

Georgia Department of Banking

and Finance hereby gives notice

of its intent to adopt new and

amended rules.

The proposed changes are in part responsive to law changes in the Department's Housekeeping Bill, SB 82, which was signed by the Governor on May 5, 2005, and effective on May 5, 2005.

A synopsis and purpose precedes each proposed rule, with background information and explanation where applicable. Please see the synopsis and proposed changes at:

http://www.state.ga.us/dbf/pdf doc/SpecialBulletinPROPOSED{M TG}_June2005_.pdf

Comments to the Department of Banking and Finance must be received by July 29, 2005, at the close of business.

Please send all comments to:

David G. Sorrell, Commissioner GA. Department of Banking & Finance 2990 Brandywine Rd., Suite 200 Atlanta, GA 30341-5565 Fax: 770.986.1654 or 1655

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The Department will review all comments, may contact those making comments to discuss their suggestions, and after the comment period has closed will prepare the final rules.
The Department will consider the proposed new rules for adoption at a meeting at 10:00 a.m. on Monday, August 15, 2005 at the offices of the Department of Banking and Finance at Suite 200, 2990 Brandywine Road, Atlanta, Georgia 30341. Notice and a copy of the final rules adopted will be e-mailed to persons who have made a special request, and will be made available on our website at: http://www.state.ga.us/dbf/.
Other interested parties may receive a copy of the final rule by contacting the Department at (770) 986-1633, after August 15, 2005.
RENEWAL SURVEY RESULTS IN
The results are in, and a big THANK YOU to all who participated in the survey and provided their thoughts on the process. In general, it appears that on-line applications get a big "Thumbs Up"!
Roughly 12% of licensees completed the survey. Of those responding:
84% preferred the on-line
application to a manual

system, with 5% preferring hardcopy.

75% felt the system was easy
to use, while only 2% felt it was extremely difficult.

86% agreed or strongly
agreed that the on-screen instructions were easy to understand, and 87% felt data entry was easy.

80% felt that the payment

options were easy to use,

with the remainder having

either some payment

problems or no comment. It

should be noted that there

were credit card system

problems at the beginning of

the process, but those were

corrected, and since that

time it appears that the

state's overall credit card

payment process is now

operating

smoothly.

However, 10% did not realize

that a check could be

submitted for payment even

if completing the application

on-line.

Regarding other comments, many suggestions regarded rewording questions to clarify what was being requested, particularly branch and rates/fees questions. Your comments will be taken into consideration when drafting next year's renewal schedules.

Many comments related to confirming that the renewal was approved. Please understand that the information entered by the licensee has to be manually reviewed before a renewal can be approved, and with over 3,000 licensees and a much smaller number of review personnel, this process takes time.

We are continuing to review the renewal process for new methods and enhancements to speed up review, and will hopefully be able to provide online confirmations of renewals in the future.
Again, a big thank you for your comments and suggestions.

Other Items

ON-LINE BRANCH & MAIN OFFICE RELOCATION NOTIFICATIONS

As promised, licensees are NOW able to enter APPROVED / EXISTING branch location address changes on-line, and... although initially thought to be delayed, the system will allow licensees to also enter main office physical and mailing address changes through this web site.

Section 7-1-1006 (e) requires

licensees to notify the

Department in writing of any

change in the address of the

main office or approved

branches 15 days before the

change in location is made. So

to assist you in the reporting

process

and

facilitate

compliance with the Georgia

Residential Mortgage Act, this

on-line application has been

provided.

The new on-line system will

allow you to enter these

changes,

avoiding

any

transcription errors which may

occur when the notice is entered

into the record from a paper

copy submitted by the licensee.

After entering the change,

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Department personnel are notified of the change, and it is reviewed and posted into the database and to the internet listings for your license.
Please make your main office or existing branch address changes, or any change in mailing address, at the following web site:
https://bkgfin.dbf.state.ga.us/M ortgageDocs/Relocation.html
This is a secure site requiring specific identifying information for the protection of your license information.

which also involves the installation of a new manager and then submit the manager approval form. However, if you are opening an entirely new branch, you must complete the APPLICATION TO ESTABLISH ADDITIONAL OFFICE(S)*, which also includes the approval for the new branch manager. That form is also available at the website noted above.
You are encouraged to review your records and enter any changes or corrections on-line.

INTEREST ONLY MORTGAGES

The Department has issued

guidance for consumers

regarding

interest

only

mortgages.

Should your

customers have questions, you

may want to provide them with

this information, which also

contains links to other resources

on this topic.

To view the article, go to:

http://www.gadbf.org/pdfdoc/i nterestonlyhomeloans.pdf

In order to access and change your location information, you will need to enter your license number, then the principal's social security number, or the company's EIN, one of which was supplied by the licensee, and which serves as the password.
Branch Manager Changes Excluded
If the branch change involves the installation of a new manager for the branch, then an approval application form for the new branch manager must be submitted, along with supporting documentation as noted in that application. The APPLICATION FOR APPROVAL OF BRANCH MANAGER form is available at the following website address:
http://www.state.ga.us/dbf/pdf doc/BrnMgrChg_R0705.pdf
A new manager may be placed into a branch prior to approval, but the application form must be filed with the Department within 15 days of placement, and the manager must be removed if the Department denies approval.

$6.50 PER LOAN FEE REPORTING
$6.50 "per loan" fees for the first half of 2005 (January 1 through June 30) are now due. Payments must be received by the due date of September 1, 2005. Failure to pay fees owed by the due date can result in a fine of $1,000.
On-Line Option
Please make these payments on line at the following web-site: https://bkgfin.dbf.state.ga.us/G RMAFee.html
Payment can be made by credit cards, via ACH debit, or by check. Follow the on-screen instructions. Should you decide to pay by check, please complete the form on-line, print a copy and send it in with your check payment.
Any comments or suggestions about the system can be emailed to the Department at: dbfmort@dbf.state.ga.us.

MORTGAGE DIVISION CONTACTS
If you need to get in touch with a member of the staff, please note that the contact information is available at:
www.state.ga.us/dbf/staff.html.

You may enter the change of address for an existing branch

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Administrative Actions and Issues

CEASE AND DESIST ORDERS Issued
American Direct Mortgage, Inc., Marietta, GA (license no. 15255) Cease and Desist Order issued May 26, 2005 became final on June 30, 2005.
Anderson, Alicia, Atlanta, GA Cease and Desist Order issued May 18, 2005 became final on June 8, 2005.
BBMD Partners, Inc., Atlanta, GA (license no. 19560) Cease and Desist Order issued May 27, 2005 became final on June 30, 2005.
C&L Ventures, Inc., Boston, GA (license no. 11405) Cease and Desist Order issued May 26, 2005 became final June 30, 2005.
Community Home Mortgage Brokers, Inc., Lithonia, GA (license no. 17977) Cease and Desist Order issued May 27, 2005 became final June 30, 2005.
Common Cents Mortgage, Inc., Austell, GA (license no. 17370) - Cease and Desist Order issued May 26, 2005 became final June 30, 2005.
Diversified Financial Group, LLC, Marietta, GA (license no. 16007) Cease and Desist Order issued May 26, 2005 became final June 30, 2005.
Edwards, Edgar M., Stone Mountain, GA (license no. 7130) Cease and Desist Order issued May 13, 2005 became final June 9, 2005.
First Choice Mortgage Financial Corporation, Marietta, GA (license 13669) - Cease and Desist Order issued May 26, 2005 became final on June 30, 2005.
1st Georgia Mortgage Funding, Inc., Roswell, GA (license no. 15528) Cease and Desist Order issued June 2, 2005 became final on June 23, 2005
First Suburban Mortgage, Inc., Cumming, GA (license no. 15420) Cease and Desist Order issued May 16, 2005 became final on June 15, 2005.
Flagship Financial, LLC, Provo, UT (license no. 19748) Cease and Desist Order issued May 18, 20045 became final on June 16, 2005.
Hall, Tiffany, Stone Mountain, GA Cease and Desist Order issued May 12, 2005 became final on June 12, 2005.
Jones, Jeffrey Kent (Chip) Jr. Cease and Desist Order issued May 18, 2005 became final on June 18, 2005.
JTB Financial Services, Inc., Cumming, GA (license no. 18817) Cease and Desist Order issued May 26, 2005 became final on June 30, 2005.

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Lane, Rosalind White, Atlanta, GA Cease and Desist Order issued May 18, 2005 became final on June 8, 2005.
Metro Mortgage Brokers of America, Inc. (license no. 14656) - Cease and Desist Order issued April 13, 2005 became final on May 12, 2005.
Millennium Financial Services, Wando, SC Cease and Desist Order issued May 2, 2005 became final on June 2, 2005.
Mortgage Options, Inc., Sugar Hill, GA (license no. 11978) Cease and Desist Order issued June 1, 2005 became final on June 30, 2005.
New Horizons Mortgage Services, Union City, GA Cease and Desist Order issued May 2, 2005 became final on June 2, 2005.
North Georgia Home Mortgage, Inc., Greensboro, GA (license no. 13198) Cease and Desist Order issued May 25, 2005 became final June 24, 2005.
Pinetree Mortgage, Inc., Stone Mountain, GA (license no. 13048) Cease and Desist Order issued June 1, 2005 became final on June 23, 2005.
Red Brick Lending d/b/a redbricklending.biz Cease and Desist Order issued May 11, 2005 became final on June 11, 2005.
Residential Mortgage Source, Inc., Dacula, GA (license no. 11923) Cease and Desist Order issued May 26, 2005 became final on June 30, 2005.
Resource Equity Mortgage, LLC, Conyers, GA (license no. 18347) Cease and Desist Order issued June 1, 2005 became final on June 30, 2005.
Shateris, Nicole Laster Thomas, Fairburn, GA Cease and Desist Order issued May 2, 2005 became final on June 2, 2005.
Silver Leaf Mortgage Company, Inc., Atlanta, GA (license no. 19215) Cease and Desist Order issued May 26, 2005 became final on June 30, 2005.
Billie Jo Stokers Mortgage Analysts, Rome, GA (license no. 18495) Cease and Desist Order issued June 1, 2005 became final on June 30, 2005.
TRG Mortgage, Inc, Austell, GA (license no. 16330) Cease and Desist Order issued May 26, 2005 became final on June 30, 2005.
Trice, Donna James, Fairburn, GA Cease and Desist Order issued May 11, 2005 became final on June 1, 2005.
VM Mortgage, Inc., Ellenwood, GA (license no. 13048) Cease and Desist Order issued June 1, 2005 became final on June 30, 2005.
Barbara J. Winters-Lending Helping Hands, Decatur, GA Cease and Desist Order issued May 27, 2005 became final June 30, 2005.

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CEASE AND DESIST ORDERS Lifted None
FINAL CONSENT ORDERS Issued None
SUPERIOR COURT INJUNCTIONS None
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
5 Licensees fined for Advertising Violations 1 Licensee fined for Check returned for insufficient fund 1 Licensee fined for doing business w/ unlicensed entity

________________________________________________________________________________________________________

LICENSEES/REGISTRANTS REVOKED, EXPIRED, SURRENDERED, WITHDRAWN OR DENIED IN JUNE 2005

ID#
7130 11362 11405 11822 11923 11978 13048 13198 13669 15063 15255

NAME

CODE

EDWARDS, EDGAR M

BD

HOMEAMRICAN CREDIT INC LD

C&L MTG CONSULT

BD

AMER BUS MTG SVCS INC

LD

RES MTG SOURCE INC

BD

MTG OPTIONS INC

BD

PINTETREE MTG INC

BD

N GA HM MTG INC

BD

1ST CHOICE MTG & FINL SVC

BD

PREFERRED MTG SVC INC

BD

AMER DIRECT MTG INC

BD

REVOKED EXPIRED 06-09-05
06-30-05

06-01-05

06-30-05 06-30-05 06-23-05 06-24-05 06-30-05
06-30-05

SURRENDERED WITHDRAWN 06-14-05 06-14-05

DENIED

7

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LICENSEES/REGISTRANTS REVOKED, EXPIRED, SURRENDERED, WITHDRAWN OR DENIED IN JUNE 2005

ID# NAME

15420 16007 16330 16933 17370 17488 17733 17977 18347 18495 18817 19149 19215 19560 19748

1ST SUBURBAN MTG INC DIVERSIFIED FINL GRP LLC TRG MTG INC VM MTG INC COMMON CENTS MTG INC 1ST LIBERTY MTG CO JONES, REBECCA L CMTY HM MTG BROKERS RESOURCE EQUITY MTG STOKES, BILLIE JO JTB FINL SVCS INC WINTERS, BARBARA J SILVER LEAF MTG CO INC BBMD PARTNERS INC FLAGSHIP FINL LLC

TOTAL: 26

CODE
BD BD BD BD BD LD BD BD BD BD BD PD BD BD BD

REVOKED

EXPIRED
06-15-05 06-30-05 06-30-05 06-30-05 06-30-05
06-30-05 06-30-05 06-30-05 06-30-05 06-30-05 06-30-05 06-30-05 06-30-05 06-16-05

SURRENDERED

WITHDRAWN 06-14-05

DENIED

________________________________________________________________________________________________________

13157 20254 20273 20309 20362 20363 20378 20395 20412 19151 20157 20221 20290 20294 20323 20358 20375 20427 20429 20437

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN JUNE 2005

COMPANY NAME

CITY

ST

MB

ORIGINAL RENEWAL

CODE APPROVAL

Absolute Lending & Mtg, LLC * FAYETTEVILLE

Empire Mortgage Svcs, Inc.

SOMERSET

GA

L

NJ

L

Ixis Real Estate Capital, Inc.

NEW YORK

NY

L

E-Z Mortgage Solutions, Inc.

LILBURN

GA

B

Audrey Edwards, Inc.

FAYETTEVILLE

GA

B

Kevin Bradley Buffington

DULUTH

GA

B

Marvis D. Simpson

ATLANTA

GA

B

Williams Mortgage Depot, LLC LITHONIA

GA

B

HomeFi Mortgage Advisory, Inc. MARIETTA

GA

B

MBS Mortgage Company, LLC FORT LAUDERDALE FL

L

S E Metro Mortgage, Inc.

ATLANTA

GA

B

MHC I, Inc.

DEERFIELD BEACH FL

L

MTB Mortgage, Inc.

LILBURN

GA

B

Kingdom Lending Group, LLC LAWRENCEVILLE

GA

B

Attain Mortgage, Inc.

ROME

GA

L

First United Mtg Corp of Georgia JERICHO

NY

L

Stella A. Whitaker 1st Virtual Mortgage, LLC

DULUTH

GA

B

PALM BEACH GARD FL

L

Samantha A. Lewis

AUSTELL

GA

B

Daniel Lawrence Tomhave

CALHOUN

GA

B

01-16-98 06-03-05 06-03-05 06-03-05 06-03-05 06-03-05 06-03-05 06-03-05 06-03-05 04-02-04 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05

06-03-05 06-03-05 06-03-05 06-03-05 06-03-05 06-03-05 06-03-05 06-03-05 06-03-05 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05

REINSTATED

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LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN JUNE 2005

COMPANY NAME

CITY

ST

MB

ORIGINAL RENEWAL REINSTATED

CODE APPROVAL

20440 20447

Cody Lynn Pack

CARTERSVILLE

Crosswalk Mortgage Company LOGANVILLE

GA

B

GA

B

20449 Busy Bee Mortgage, Inc.

MARIETTA

GA

B

20466 Rashit N. Shakirov

ROSWELL

GA

B

20467 Christian George Leon

SNELLVILLE

GA

B

20468 Interfirst Mortgage, Inc.

NORCROSS

GA

B

20482 First Fidelity Centers, Inc.

TARZANA

CA

L

19526 360 Enterprises, Inc.

GREENBELT

MD

B

20342 Allen Mortgage, LC

CENTENNIAL PARK AZ

L

20430 Christopher Robert Payne

DALLAS

GA

B

20432 Dogwood Mtg of Atlanta, Inc.

CUMMING

GA

B

20460 Seniors Home Reverse Mtg, Inc. DECATUR

GA

B

20465 Old Commonwealth Mtg, LLC GARDEN CITY

NY

B

20472 Guaranteed Home Mtg Co., Inc. WHITE PLAINS

NY

L

TOTAL: 34

06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-24-05 06-24-05 06-24-05 06-24-05 06-24-05 06-24-05 06-24-05

06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-17-05 06-24-05 06-24-05 06-24-05 06-24-05 06-24-05 06-24-05 06-24-05

MB CODES B = BROKER L = LENDER R = REGISTRANT

*

Upgrade Broker to Lender

+

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#

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