Monthly summary of mortgage activities, Aug. 2005

Inside this Issue

2

Continuing Education

Requirements

2

Background ChecksNew Time

Requirements

2

Surety Bond Requirement

Reminder

3

More On-line Applications

3

Outstanding Orders on Employees

4

Notificants On-line Reporting

5

Administrative Actions & Issues

Monthly Summary of Mortgage Activities
Georgia Department of Banking & Finance
FOR THE PERIOD ENDING
August 2005
SUMMARY OF ACTIVITIES
MORTGAGE DIVISION
WEB SITE: www.state.ga.us/dbf STAFF: www.state.ga.us/dbf/staff.html

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

CONTINUING EDUCATION REQUIREMENTS

A significant change in the regulations involves the implementation of an annual continuing education (CE) requirement for brokers. Significant portions of the requirement are as follows:

Hours Required: Brokers must obtain 12 hours of continuing education in a 12 month period prior to the annual renewal deadline.

Qualifying Attendees: the qualifying attendee will be the individual owner of the licensee, or a person designated and employed by the licensee as the primary supervisor or manager of the business.

Qualifying Courses: Courses

approved by mortgage

related state and federal

regulatory agencies, NAMB,

state and federally regulated

lenders and affiliates, and

other approved providers.

Courses consisting of

monthly

association

meetings,

conventions,

seminars or those provided

through electronic means,

will qualify as continuing

education hours, provided

the subject meets the

requirements of the rule.

Course Content: Generally course material must pertain

to state and federal rules

and regulations on the

mortgage industry, the

brokering process, loan

application

processing,

proper loan documentation,

and, in general, operating a

mortgage brokering business

in Georgia. NOTE-At least

one hour shall be concentrated

on fraud detection and

prevention annually.

Proof of Training: Licensees must maintain course documentation as noted in the rule, i.e. name of course, provider, date, etc., and must maintain such documentation for a period of 5 years. Approved Georgia in-state education providers must maintain lists of attendees for 2 years.

Fine: Licensees who apply for renewal, but who have failed to meet the continuing education requirements will be fined $1,000, and will have from April 1 to June 30 prior to the new fiscal year licensing period starting July 1 of each year to obtain CE credits, or their license can not be renewed.

The requirement for CE hours will begin with the FY 2008 licensing period (April 1, 2007 renewal). As such, licensees will have from January 1, 2006 through April 1, 2007 to obtain credits. After that initial period, April 1 through March 31 will be the period each year to obtain CE hours. To qualify for renewal if you failed to obtain credit during that period, you will have from April 1 to June 30 to make up the credits, but will receive a $1,000 fine for failure to obtain credit in the qualifying 12

months for that renewal period. If the CE hours are then not obtained in the make-up period, the renewal will not be approved.
BACKGROUND CHECKSNEW TIME REQUIREMENT

Regulation

80-11-1-.05(1)

regarding background checks on

covered employees was revised

to require that all employers

submit background information

to the proper authorities

promptly upon initial hire in

order to meet the 90 day

requirement to complete the

checks on new employees.

Therefore, the new requirement

states that employers must

submit the information to the

proper authorities within 10

business days of initial hire.

A fine of $1,000 is imposed if the 10 business day filing requirement is not met and an employee is found to be disqualified under Code Section 7-1-1004.

SURETY BONDS REQUIREMENT REMINDER

To those licensees who still have a qualifying audit in place, please be advised that once the audit expires for licensing purposes and no surety bond is provided, the licensee will be issued a cease and desist order and their license will expire 20 days after the issuance of the order if no bond is subsequently provided. As a reminder, please read below:

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GRMA Requirements
Due to changes in the Georgia Residential Mortgage Act made in the 2005 legislative session, all licensees must now have a surety bond in place in order to meet the financial requirements for licensing. This means a bond (or letter of credit) in the amount of $50,000 for brokers and $150,000 for lenders. The bond must be on the Department approved bond form available from the website. The HUD approved broker/lender category no longer exists for any type of licensee.
For those lenders and HUD approved brokers who were still able to use their audited financials for the FY 2006 renewal period, please note that, when your existing audit expires, you must provide a qualifying surety bond to replace those audited financials.
If you fall into the expiring category noted above, you will receive a letter from the Department indicating that your audit is expiring and the bond is required. You may not submit new audited financials and maintain your license. Failure to provide a bond will result in the revocation of your existing license for failure to maintain the financial qualifications required for the license.
INSURER Requirements
The new requirement for all licensees to have a bond exposes insurers to potentially more risk in a narrow market, and therefore many of these bonding companies have chosen to tighten their underwriting and credit standards.

A review of the procedures utilized by some bonding companies indicates they have chosen to more closely analyze credit scores, outstanding liens and judgments, and the liquidity available in the financial position of the insured. Based on the bonding company's underwriting standards and analysis, licensees are then offered a rate plan, at which point they may then choose to accept or reject the insurance plan offered through that company.

These financial requirements are a business decision by the bonding company for protection of their business and/or that of the sureties with whom they work.

Should you wish to seek further

assistance or feel that you have

additional issues or concerns

with regard to the plan as

offered by a company, please

contact

the

Insurance

Commissioner's Office at (404)

656-2070 or email at:

inscomm@mail.oci.state.ga.us.

MORE ON-LINE APPLICATIONS

The following on-line functions are now available as noted:

We encourage you to take

advantage of these new on-line

applications. They save time,

paper, prevent transcription

errors, and ensure that the

correct

information

is

maintained for your license.

Other Items

OUTSTANDING ORDERS EMPLOYEES
As you know, licensees have the responsibility to check the Department's website to ensure their potential employees do not have an outstanding Cease & Desist Order issued by the Department.
Licensees should also be aware that if an employee/prospective employee has an outstanding Consent Order, then the licensee should ask the employee for a copy of the Order to determine exactly what restrictions have been placed on that employee or potential employee regarding working in the industry.

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NOTIFICANTS
REPORTING CHANGES
ON-LINE
Under the GRMA, any wholly owned subsidiary of any lender described in paragraph Code Section 7-1-1000 (1) shall be subject to the filing of a notification statement in order to facilitate the department's handling of consumer inquiries.
The notification requirements are contained in Code Section 71-1003.4. Any subsidiary which fails to file the notification statement or keep the information current will immediately be subject to the registration requirements of Code Section 7-1-1003.3
To facilitate this reporting, the Department has provided an online update system, as noted in the "On-Line" section above.
So, to use the system, notificants apply on-line for activation of a password. This step is made to ensure that only authorized personnel have access to the data for that notificant.
The following day after application for the password has been made, Mortgage Division personnel will verify the information provided by the applicant for password access, and if all data is validated, then the password will be activated.
Mortgage Division will then notify the notificant of their password at the e-mail address provided by the applicant when applying for the password. This password is good for subsequent changes. Should the password ever be forgotten or compromised, the user can go on-line for a reminder or to reapply.

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Administrative Actions and Issues
CEASE AND DESIST ORDERS Issued
ABC Mortgage Services, Inc. Augusta, GA (license 15290) Cease and Desist Order issued July 22, 2005 became final on August 21, 2005.
AMB Brokers, LLC, Alpharetta, GA (license no. 18511) Cease and Desist Order issued July 20, 2005 became final on August 18, 2005.
Butler, Shonta Y., Smyrna, GA Cease and Desist Order issued July 29, 2005 became final on August 19, 2005.
Eshmon, Taamiah, Stone Mountain, GA Cease and Desist Order issued July 20, 2005 became final on August 10, 2005.
Ewing, Terry Lynn, Lilburn, GA Cease and Desist Order issued July 29, 2005 became final on August 19, 2005.
Lawson, Ruth C., Flowery Branch, GA (license no. 18636) Cease and Desist Order issued July 20, 2005 became final August 18, 2005.
Lee, Veronica, Statesboro, GA Cease and Desist Order July 25, 2005 became final on August 25, 2005.
Liberty Mortgage Capital, Inc., Atlanta, GA Cease and Desist Order July 20, 2005 became final on August 20, 2005.
Nash, Samantha, Atlanta, GA Cease and Desist Order July 29, 2005 became final on August 19, 2005.
Nationwide Realty & Mortgage, Inc., Marietta, GA (license no. 19939) Cease and Desist Order issued July 22, 2005 became final August 20, 2005.
Ocean West Enterprise, Inc. dba Ocean West Funding, Tustin, CA (license no. 12746) Cease and Desist Order issued July 7, 2005 became final August 7, 2005.
Park West Mortgage, Inc, Atlanta, GA license no. 15698) Cease and Desist Order issued July 19, 2005 became final August 17, 2005.
Smith Enterprises, Inc. dba Smithstone Mortgage Service, Hogansville, GA (license 6648) Cease and Desist Order issued July 18, 2005 became final on August 14, 2005.
Universal Funding Enterprises (Veronica Lee), Statesboro, GA Cease and Desist Order issued July 22, 2005 became final on August 22, 2005.
_____________________________________________________________________________________

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CEASE AND DESIST ORDERS Lifted None
FINAL CONSENT ORDERS Issued American Home Loan Corp., Suwanee, GA (license no. 16704) - Consent Order issued August 11, 2005, became final on August 11, 2005. Morris, E. David, Atlanta, GA Consent Order issued August 1, 2005, became final on August 1, 2005. Ashton, James D., Gainesville, GA Consent Order issued August 11, 2005, became final on August 11, 2005.
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 Background Checks
Violations 3 Licensees fined for Books & Records 2 Licensees fined for Unapproved Branch 3 Licensee fined for Unapproved Branch Manager

4 Licensees fined for Loans Files not properly maintained 1 Licensee fined for GaFla Violations 2 Licensees fined for Check returned for Insufficient funds 3 Licensees fined for Prohibited Act 1 Licensee fined for Doing business w/ Unlicensed Entity

________________________________________________________________________________________________________

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

ID# NAME

CODE

5738 MCCAUGHAN MTG CO INC

LD

6648 SMITH ENT INC

BD

14715 FIRST CAPITAL MORTGAGE

BD

& ASSOCIATES, INC.

15265 OCWEN INC

BD

15290 ABC MTG SVCS INC

BD

15698 PARK W MTG INC

BD

16704 AMER HM LOAN CORP

BD

17939 RHR MTG AMER LLC

LD

18511 AMB BROKERS LLC

BD

18636 LAWSON, RUTH C

PD

19939 NATIONWIDE REALTY & MTG BD I
TOTAL: 11

REVOKED EXPIRED SURRENDERED

08-19-2005

08-14-2005

08-21-2005 08-17-2005
08-18-2005 08-18-2005 08-20-2005

08-11-2005

WITHDRAWN 08-08-2005
08-29-2005
08-26-2005

DENIED

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN AUGUST 2005

ID#
20269 20322 20422 20493 20524 20539 20543 20553
20576 20595 20596 20597 20643 19823 20459 20473 20575 20584 20619 20620 20623

COMPANY NAME

CITY

Pacific Reverse Mortgage, Inc. The Mortgage Zone, Inc. (NY) SunnyMTG.com 866-768-CASH Amherst Funding Group, L.P. AmStar Financial Mortgage, Inc. ACT Lending Corporation Central Fidelity Mtg Corp Melanie W. Walburg

San Diego Melville Pompano Beach Austin Atlanta Sunrise Atlanta Dawsonville

Mortgage SuperStore, Inc. Sandra B. Brand First Choice Mortgage & Capital AC K Edwai rds Tax & Finl Svcs Atlanta Primary Home Mtg, Inc. Resurgens Capital Mtg, LLC * American Mtg Corp of S AL Allegiance Mortgage, Inc. Broker's Home, LLC Platinum Mortgage, Inc. (AL) Grassroots Mortgage, Inc. Evergreen Home Finance, LLC Shelby Ernest Kervin

Boca Raton Alpharetta Lithonia Hampton Alpharetta Atlanta Foley Chattanooga Metairie Madison Stone Mountain Lilburn Atlanta

MB

ORIGINAL

ST CODE APPROVAL RENEWAL REINSTATED

CA

L

NY

B

FL

B

TX

L

GA

B

FL

L

GA

B

GA

B

08-05-2005 08-05-2005 08-05-2005 08-05-2005 08-05-2005 08-05-2005 08-05-2005 08-05-2005

08-05-2005 08-05-2005 08-05-2005 08-05-2005 08-05-2005 08-05-2005 08-05-2005 08-05-2005

FL

L

GA

P

GA

B

GA

B

GA

B

GA

L

AL

B

TN

B

LA

B

AL

L

GA

B

GA

B

GA

B

08-05-2005 08-05-2005 08-05-2005 08-05-2005 08-05-2005 12-24-2004 08-12-2005 08-12-2005 08-12-2005 08-12-2005 08-12-2005 08-12-2005 08-12-2005

08-05-2005 08-05-2005 08-05-2005 08-05-2005 08-05-2005 08-12-2005 08-12-2005 08-12-2005 08-12-2005 08-12-2005 08-12-2005 08-12-2005 08-12-2005

7

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LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN AUGUST 2005

ID# COMPANY NAME

CITY

20639 20645 20648 20649 20656 20657 20673 20509 20531 20592 20624 20625 20626 20633 20637 20653 20654 20669 20672 20685 20703 20534 20582 20598 20614 20621 20636 20655 20701 18695 19097

Residential Lending of MD Diversion Enterprises, LLC

Calverton Suwanee

Easy Home Loans, Inc.

Rincon

Kerling Menard Eldred

Lithonia

Real Property Mtg Co, LLC

Decatur

Benjamin Scott Terry

Macon

Shades Of Green Mtg Co

Locust Grove

Clayton Peters and Assoc, Inc. Towson

Joseph Mann, Jr.

Columbus

Will Daniel Wren

Duluth

Yolanda Rivera

Atlanta

Dreamland Mortgage, LLC

Ellenwood

First Mutual Home Loans Corp Atlanta

AZ Mortgage Service, LLC

Chamblee

James F. Partlowe

Gainesville

NorthPoint Capital

Roswell

Ryan David Luelf

Atlanta

Hargrow & Associates, Inc.

Ann Arbor

Assurance Financial Group, LLC Baton Rouge

First Integrity Lending, LLC

Lawrenceville

EBS Mortgage, LLC

Winston

United Mtg & Loan Inv, LLC

Charlotte

Hunter Financial Group, LLC

Tempe

Mtg Professionals, Inc. (DE)

Hatboro

Tristone Financial, LLC

Alpharetta

Labrescia Dawson

Lawrenceville

Amanda Reeves Palmer

Donalsonville

Platinum Mtg Funding of FL, Inc. Naples

Clocktower Mortgage Company, Rome

BI ach Consulting, Inc.

Destin

Structured Mtg Svcs, Inc.

MARIETTA

TOTAL: 52

MB

ORIGINAL

ST CODE APPROVAL RENEWAL REINSTATED

MD

L

GA

B

GA

B

GA

B

GA

B

GA

B

GA

B

MD

B

GA

B

GA

B

GA

B

GA

B

GA

B

GA

B

GA

B

GA

L

GA

B

MI

B

LA

B

GA

B

GA

B

NC

L

AZ

L

PA

L

GA

B

GA

B

GA

B

FL

B

GA

B

FL

B

GA

B

08-12-2005 08-12-2005 08-12-2005 08-12-2005 08-12-2005 08-12-2005 08-12-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-26-2005 08-26-2005 08-26-2005 08-26-2005 08-26-2005 08-26-2005 08-26-2005 08-26-2005 10-03-2003 02-27-2004

08-12-2005 08-12-2005 08-12-2005 08-12-2005 08-12-2005 08-12-2005 08-12-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-19-2005 08-26-2005 08-26-2005 08-26-2005 08-26-2005 08-26-2005 08-26-2005 08-26-2005 08-26-2005 08-19-2005 08-26-2005

08-19-2005 08-26-2005

MB CODES B = BROKER L = LENDER R = REGISTRANT

*

Upgrade Broker to Lender

+

Downgrade Lender to Broker

#

Upgrade Lender to Registrant



Downgrade Registrant to Lender

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