Georgia Department of Banking & Finance NON-DEPOSITORY FINANCIAL INSTITUTIONS Monthly Summary of Mortgage Activities For the Period Ending October 2006 Inside this issue: Nontraditional Mortgage Loans 1 Advertising 1 Fingerprint Card Scanning 2 License Match--from GTA 3 On-line Information Updatees 3 Customer Service Georgia 4 Administrative Actions 5 Fines 6 Licenses Approved & Reinstated 7 Licenses Revoked, Expired...etc 9 2990 Brandywine Rd. Suite 200 Atlanta, GA 30341 Phone: 770.986.1269 Fax: 770.986.1029 NEWS ITEMS Nontraditional Mortgage Loans Agencies Offer NonTraditional Mortgage Publication The federal financial institution regulators published a new resource to help consumers make more informed choices when considering nontraditional mortgage loans. The publication "Interest-Only Mortgage Payments and PaymentOption ARMs Are They for You?" -- stresses the importance of understanding key mortgage loan terms, warns of the risks consumers may face, and urges borrowers to be realistic about whether they can handle future payment increases. Consumers who are not comfortable with these risks are urged to consider other products. It features a glossary of lending terms, a mortgage shopping worksheet and a list of additional information sources. The publication is available on the each of the regulatory agency's Web sites for download in PDF format, and licensees may add their own contact information. The sponsoring regulators are FDIC, Federal Reserve, Office of the Thrift Supervision, the Office of the Comptroller of the Currency and the National Credit Union Administration. The 11page brochure is available at http://www.fdic.gov/ consumers/consumer/interestonly/index.html. within the document, noting terms of the current or former lender and/or identifying information from the courts, While not directly stating there is a problem, the document makes it appear that there may at least be potential problems with the existing note, the payoff of an old note, or outstanding issues with the bankruptcy courts. Potentially Misleading Advertising False and Misleading Advertising As previously noted in the Monthly Summary, many companies continue to advertise to would-be mortgage clients by using advertising that appears to be from the customer's existing or prior mortgage company, and the newest approach is to appeal to consumers who have recently gone through a bankruptcy. These advertisements often appear to be legal documents with "Deed of Trust", "Discharged Bankruptcy Statement" or other terminology in bold lettering on or The unsuspecting borrower does not realize, and often can not readily discern from these documents, that this is an advertisement, the sole purpose of which is to get the borrower to call the number in the advertisement for the purpose of obtaining a new mortgage from the advertising licensee. The identifying licensee information is generally in small point type in an obscure location, if it is discernable at all. Consumer Concerns The Department has determined that the use of such an (Continued on page 2) Monthly Summary of Mortgage Activities For the Period Ending October 2006 Page 2 Fingerprint Card Scanning The blue lined DBF cards and typed information then make the card usable on our scanner. The Department uses a fingerprint card scanner that allows the Department to submit card information "on-line" to the GBI for review. As a result, if the Department receives a quality fingerprint card that can be read by the scanner, criminal history results may be received within days, and not weeks, which helps decrease the time for approving pending applications. However, it has come to our attention that many law enforcement agencies preparing cards for you now use "live-scan" - electronic fingerprint scanning, rather than using ink rolled prints. Unfortunately this poses a problem because the livescan cards often cannot be read on our card reader. If we receive a complete application requiring no further information, along with good fingerprint cards, the approval processing time is significantly improved. On any cards you submit, live scan or rolled prints, in order to increase the probability fingerprint cards will be readable and acceptable for the GBI and FBI, examine the cards and make sure the prints are not too light or dark and the prints are not smudged. Smudging, actually blurring, can also occur on live-scan prints. In addition, make sure each print is inside the appropriate blue box on the form, not touching or crossing over the lines. These cards cannot be read and you will be asked to submit new cards. To alleviate some reader problems, we ask that licensees request and use Department cards, but DO NOT COMPLETE any information before taking the card to the law enforcement agency. The law enforcement agency will then enter the person's information into its computer, scan the prints, and then print the completed card containing all of the identifying information and fingerprints. FY 2008 RENEWAL CONTINUING EDUCATION REMINDER JUST A REMINDER THAT BROKERS MUST OBTAIN 12 HOURS OF CONTINUING EDUCATION IN A 12 MONTH PERIOD PRIOR TO THE ANNUAL RENEWAL DEADLINE. CREDITS MUST BE OBTAINED PRIOR TO MARCH 31, 2007. MAKEUP CREDITS CAN BE OBTAINED APRIL 1 TO JUNE 30. FAILURE TO OBTAIN CONTINUING EDUCATION CAN RESULT IN THE IMPOSITION OF FINES AND POSSIBLE NON- RENEWAL OF THE LICENSED Q&A for CE's http://www.ganet.org/dbf/ faqmtg.html Advertising (Continued from page 1) advertisement is alarming to the consumer and appears to mislead the consumer into thinking that there is a problem with their existing loan, the payoff of the prior loan, or unresolved bankruptcy issues with the loan. Such possibly misleading advertisements are in potential violation of Official Code of Georgia Section 7-11016, which prohibits licensees from engaging in false, misleading, or deceptive advertising. UPCOMING SPEAKING ENGAGEMENTS Deputy Commissioner Rod Carnes, Supervisory Manager Joel Byers, and Examiner Peter Lisowski will be speaking to the Money Service Businesses of Georgia organization at the Gwinnett Convention Center, November 29, 2006. Licensees should understand that the use of such advertise- ments is discouraged by the Department, particularly where other lenders are named in these documents. Such ad- vertising could lead to possible legal action by the lenders named in the advertisement against the licensee creating the ad. What is known for certain is that such advertisements DO lead to many consumer complaints against those licensees who use this type of advertising. Licensees need to be aware of the fact that consumer complaints are a basis used by the Department for scheduling examinations. Useful Links MORTGAGE FORMS: CODE, REGULATIONS & APPLICATIONS HTTP://WWW.STATE.GA.US/ MORTGAGE_FORMS.HTML UPDATING LICENSE INFORMATION HTTP://WWW.STATE.GA.US/ DBF/MORTGAGE_FORMS.HTM L#ONLINE PRESS RELEASES HTTP://WWW.GANET.ORG/D BF/BULLETINS.HTML Continued on Page 3 Monthly Summary of Mortgage Activities For the Period Ending October 2006 Page 3 GTA helps fight identity crime with LicenseMatch "Because when it comes to bank fraud, the bad guys aren't this obvious." According to the FBI and the American Bankers Association, thieves steal more through check fraud than from bank robberies, costing banks an average of $677 million a year. With instructions on the Internet and easy access to desktop publishing software and laser printers, would-be criminals find it easier than ever to create counterfeit checks and IDs. The Georgia Technology Authority (GTA) has developed a tool called LicenseMatch to help combat check fraud. LicenseMatch is a simple, yet powerful, web-based tool now offered to banking institutions and other licensed entities. Using LicenseMatch, licensees can quickly check customers' state-issued ID cards against an up-to-date database to ensure the IDs are valid. If the match isn't made between what's on the ID and what's in GTA's system, it could mean a case of false identity! Mortgage personnel can then take action following in-house procedures. For example, LicenseMatch can be used to verify the license information when anyone is cashing a check, opening an account, applying for or closing a loan, obtaining account information, initiating a wire transfer or gaining entry into a safe deposit box. LicenseMatch was conceived by GTA and developed in cooperation with the Georgia Department of Banking & Finance and the Georgia Department of Driver Services. The tool is currently being piloted and will be available for general sale beginning in January. If you would like to learn more about LicenseMatch, you may view or download a copy of the promotional tri-fold brochure. "We debuted LicenseMatch at a recent credit union industry conference, and it was a big hit," said GTA Data Sales Director Ivan Sumter. "We believe this simple, safe and cost-effective tool will be a much-needed, value-added service to the banking and financial services industry. We also hope to expand our business to other industries in the future." For more information contact: Georgia Technology Authority Office of Data Sales 404-463-2300 or 404-463-7212 datasales@gta.ga.gov GTA is a state agency whose purpose is to deliver secure, reliable technology services and solutions, and provide guidance and oversight that lead to sound decisions for Georgia government. Learn more.... visit GTA on the web at http:// gta.georgia.gov/ ON-LINE MORTGAGE APPLICATIONS & INFORMATION UPDATES A reminder to all licensees and applicants--you can make many timely changes to your license record or check the status of a pending application on-line. The items noted below are those which you can handle on-line, and it is preferable that you use this system to ensure the information is entered exactly as you need it to be reflected. Main Office Relocation/ Address Change Branch Office Relocation/ Address Change (NOT Branch Manager changes) Mailing Address Changes Office Closure Notification Contact Changes: Com- pany, Complaint, Registered Agent Pending Application(s) - Status Fingerprint Card Requests On-Line $6.50 Fee Pay- ments Notificant Information Changes Please utilize the options above to make timely notifications to the Department. If you have any suggestions, please e-mail the Department at: dbfmort@dbf.state.ga.us Happy Thanksgiving Continued on Page 4 Customer Service Georgia Page 4 Governor Sonny Perdue has a campaign to put new emphasis on customer service, emphasizing easier access to government services, faster processes so customers can get business done quickly, and friendlier service in a customer-focused, goal-oriented culture. It is the Department's goal to provide excellent customer service, meeting and exceeding the expectations of our customers. Along those lines, we would like to recognize the following individuals for going above and beyond in serving our customers: Larry Shelley--Supervisory Manager--Mortgage Regulation: Larry received an email this month from a customer saying: "Your help is appreciated. Here is your gold star for being the first of all states to call me back. You are great!" CONGRATULATIONS AND GREAT JOB!! The Department is the state agency that regulates and examines banks, credit unions, and trust companies chartered by the State. The Department also has regulatory and/or licensing authority over mortgage brokers, lenders, and processors, money service businesses, international banking organizations, and bank holding companies conducting business in Georgia. Our MISSION is to promote safe, sound, competitive financial services in Georgia through innovative, responsive regulation and supervision. Our VISION is to be the best financial services industry regulator in the country Progressive. Proactive. Service-Oriented. Continued on Page 5 Administrative Actions For the Period Ending September 2006 CEASE AND DESIST ORDERS--ISSUED Page 5 Custom Home Loans, Inc., Las Vegas, NV Cease and Desist Order issued September 1, 2006 became final on October 2, 2006. Diversified Home Mortgages, Inc., Atlanta, GA Cease and Desist Order issued September 15, 2006 became final on October 16, 2006. Ferranti, Riccardo, Alpharetta, GA (license no. 19816) Cease and Desist Order issued August 31, 2006 became final on October 1, 2006. Henderson, Corey E. dba YET-Worldwide Financial Group Cease and Desist Order issued September 1, 2006 became final on October 2, 2006. Madson Mortgage Company, Douglas, GA (license no. 12854) Cease and Desist Order issued September 25, 2006 became final on October 25, 2006. Nationwide Security Mortgage Corporation, Orange, CA (license no. 21028) Cease and Desist Order issued September 1, 2006 became final on October 3, 2006. Painter, Amanda C., dba Continental Mortgage, Lake Park, GA (license no. 17138) Cease and Desist Order issued September 26, 2006 became final on October 26, 2006. Park West Mortgage, Inc., Atlanta, GA (license no. 15698) Cease and Desist Order issued September 29, 2006 became final on October 31, 2006. Pearson, Taisha, College Park, GA Cease and Desist Order issued May 10, 2005 became final on October 27, 2006. Continued on Page 6 Administrative Actions For the Period Ending September 2006 Page 6 CEASE AND DESIST ORDERS--LIFTED OR RESCINDED AllState Equity Mortgage, Inc., Woodstock, GA (license no. 16936) Cease and Desist Order issued August 17, 2006 was rescinded on October 13, 2006. FINAL CONSENT ORDERS --ISSUED Park, Yong Rae, Atlanta, GA--Consent Order issued October 11, 2006 and became final on October 11, 2006. City Capital Mortgage, Atlanta, GA (license no. 19269)--Consent Order issued October 11, 2006 and became final on October 11, 2006. 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 2 Licensees fined for Background Checks Violation 3 Licensees fined for Books & Records 1 Licensee fined for Employment of a Felon 1 Licensee fined for Loan Files not properly maintained 1 Licensee fined for Check returned for Insufficient Fund 2 Licensees fined for doing business w/ unlicensed entity 8 Licensees fined for Unapproved Branch 4 Licensees fined for Unapproved Branch Manager 2 Licensees fined for Prohibited Acts 1 Licensee fined 1099 Employees 1 Licensee fined for Miscellaneous/Other Continued on Page 7 Monthly Summary of Mortgage Activities For the Period Ending October 2006 Page 7 ID# 20014 21681 21703 21785 21833 21842 21843 21848 21856 21858 21861 21864 21870 21884 21891 21904 17203 20509 21844 21687 21797 21798 21824 21831 21846 21876 21877 21882 21883 21886 21894 21559 21722 21804 LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN 0CTOBER 2006 Novation Mortgage, LLC * CITY Marietta MB ST CODE GA L ORIGINAL APPROVAL 01-07-2005 RENEWAL 10-06-2006 Mainstreet Mortgage Lending Enterprises, Inc. Vestor Mortgage of Georgia, LLC Port St. Lucie Sarasota FL B FL B 10-06-2006 10-06-2006 10-06-2006 10-06-2006 First Capital & Mortgage, LLC Atlanta GA B 10-06-2006 10-06-2006 Rational Citizens Mortgage Corp Orlando FL B 10-06-2006 10-06-2006 Legends Mortgage Services, Inc. Gainesville GA B 10-06-2006 10-06-2006 Waset Mortgage Group, Inc. Boca Raton FL B 10-06-2006 10-06-2006 Rushing Enterprises, LLC Indianapolis IN B 10-06-2006 10-06-2006 Barbara Butler Savannah GA B 10-06-2006 10-06-2006 Global Residential Mortgage, Incorporated Affordable Home Mortgage, Inc. Norcross Tampa GA B FL B 10-06-2006 10-06-2006 10-06-2006 10-06-2006 Metro Management Corporation Atlanta GA B 10-06-2006 10-06-2006 Anclote Mortgage, LLC Tarpon Springs FL B 10-06-2006 10-06-2006 West Coast Processing, LLC Senoia GA L 10-06-2006 10-06-2006 Mortgages Unlimited, Inc. Lawrenceville GA B 10-06-2006 10-06-2006 Atlantic Financial Funding, Inc. Atlanta GA B 10-06-2006 10-06-2006 Hallmark Funding, LLC * Atlanta GA L 04-12-2002 10-13-2006 Clayton Peters and Associates, Inc. * Central Funding, Inc. * Towson Duluth MD L GA L 08-19-2005 09-15-2006 10-13-2006 10-13-2006 Starpointe Mortgage, LLC Troy MI L 10-13-2006 10-13-2006 JBL Mortgage Network, LLC Annapolis MD B 10-13-2006 10-13-2006 First United Mortgage Services Corp. Atlantic Mortgage Financing, Inc. Fort Lauderdale Woodstock FL L GA B 10-13-2006 10-13-2006 10-13-2006 10-13-2006 Prime One Funding, Inc. Los Angeles CA B 10-13-2006 10-13-2006 Dogwood Mortgage Services, LLC Atlanta GA B 10-13-2006 10-13-2006 Optimized Financial Services, Inc. Snellville GA B 10-13-2006 10-13-2006 Cornerstone Mortgage Company (Texas) Grand Prix Credit Corporation Houston Atlanta TX L GA B 10-13-2006 10-13-2006 10-13-2006 10-13-2006 Lightell Loan Processing, Inc. Cumming GA P 10-13-2006 10-13-2006 South Fulton Mortgage Company, Inc. Vulcan Financial Corp. Fairburn Pasadena GA B CA L 10-13-2006 10-13-2006 10-13-2006 10-13-2006 Jonathan Bolnick Atlanta GA P 10-20-2006 10-20-2006 All American Mortgages of Savannah, Inc. Lewis Hunt Enterprises, Inc. Pooler Troy GA B MI L 10-20-2006 10-20-2006 10-20-2006 10-20-2006 REINSTATED Continued on Page 8 Monthly Summary of Mortgage Activities For the Period Ending October 2006 LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN SEPTEMBER 2006 Page 8 ID# 21841 21859 21890 21892 21908 21932 21935 21936 21938 21941 21951 21957 20929 21799 21854 21857 21905 21919 21920 21933 21937 21939 21950 21954 21961 21962 21964 21967 21968 14642 19588 16936 19412 15616 COMPANY NAME CITY Premier Home Lending, Inc. Prestige Funding, LLC Maryland Financial Resources, Inc. Covenant Lenders, LLC Lawrence E. Haynes The Dunhill Mortgage Co., Inc. Mortgages By Prime, Inc. Renovation Mortgage Plus, LLC Leon Mortgage Lending, Corp. 1st Advantage Mortgage, L.L.C. (Illinois) Future Mortgage, LLC Machelle Pellegrini America's Lending Leader, LLC * Pacific Wholesale Mortgage, Inc. Empire Capital Group, Inc. RAM Capital Corporation Shepard Mortgages and Financing, Co. Equity Resources, Inc. Montgomery Mtg Capital Richmond Community Home Mortgage, Inc. Superior Mortgage Corporation (Virginia) Gemstarr Mortgage Services, Inc. Lender Lend, Inc. Seminole Moneytree, Inc. AmeriDream Mortgage Group, Inc. Atlas Capital Mortgage, Inc. 1st Advantage Mortgage, LLC Brown Eyed Beauty, LLC Asset Builders, LLC BNB & Associates, LLC Tampa Waunakee Cockeysville Gainesville Atlanta Lakewood Fayetteville Alpharetta Doral Lombard Norcross Duluth Atlanta Pasadena Atlanta Jonesboro Nashville Newark Parsippany Staten Island South Hill Cooper City Atlanta Lake Mary Dunwoody Ball Ground Roswell Jonesboro Hollywood College Park Palmetto South Mortgage Corporation Allstate Equity Mortgage, Inc. FMT Mortgage of America, LLC Columbia Woodstock Fort Myers DBSA Holdings, Inc. San Diego ST MB CODE FL B WI B MD B GA B GA B CO B GA B GA B FL L IL L GA B GA B GA L CA B GA B GA B GA B OH L NJ L NY B VA B FL B GA B FL L GA B GA B GA B GA B FL L GA B SC L GA B FL B CA L ORIGINAL APPROVAL 10-20-2006 10-20-2006 10-20-2006 10-20-2006 10-20-2006 10-20-2006 10-20-2006 10-20-2006 10-20-2006 10-20-2006 10-20-2006 10-20-2006 12-16-2005 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 05-21-1999 08-27-2004 12-21-2001 08-06-2004 05-05-2000 RENEWAL 10-20-2006 10-20-2006 10-20-2006 REINSTATED 10-20-2006 10-20-2006 10-20-2006 10-20-2006 10-20-2006 10-20-2006 10-20-2006 10-20-2006 10-20-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-27-2006 10-06-2006 10-06-2006 10-06-2006 10-06-2006 10-13-2006 10-13-2006 10-13-2006 10-13-2006 10-20-2006 10-20-2006 TOTAL: 68 Continued on Page 9 Monthly Summary of Mortgage Activities For the Period Ending October 2006 Page 9 LICENSEES/REGISTRANTS REVOKED, EXPIRED, SURRENDERED, WITHDRAWN OR DENIED IN OCTOBER 2006 ID# 11649 12854 15698 16993 17138 17503 17956 19158 19190 19269 19401 19545 19816 21028 21044 21839 COMPANY NAME AAMES FUNDING CORP MADSON MTG CO PARK W MTG INC HERITAGE LENDING GRP INC PAINTER, AMANDA C ALLIANCE FINANCING MTG CO EZ LOAN, INC AMERIFIRST FINL CORP MMBA METRO MTG INC CITY CAPITAL MORTGAGE, INC. ACCURATE FINL SOLUTIONS AAMES INV CORP FERRANTI, RICCARDO NATIONWIDE SECURITY MTG C HOME LOANS PA LLC R & J Mortgage Corp CODE LD BD BD LD BD LD BD LD BD BD BD LD BD BD BD BD REVOKED EXPIRED 10-25-2006 10-31-2006 10-26-2006 10/11/2006 SURRENDERED WITHDRAWN 10-10-2006 10-24-2006 10-06-2006 10-31-2006 10-11-2006 10-10-2006 DENIED 10-01-2006 10-12-2006 10-25-2006 10-03-2006 10-30-2006 10-20-2006 TOTAL: 16 * Upgrade Broker to Lender + Downgrade Lender to Broker # Upgrade Lender to Registrant Downgrade Registrant to Lender MB CODES B = BROKER L = LENDER R = REGISTRANT To receive this publication: This publication is e-mailed monthly to interested parties and is also available from the Department's website at: http://www.state.ga.us/dbf/bulletins.html If you would like to be added to our distribution list, please send an email to: dbfmort@dbf.state.ga.us. Please include your name, company, and phone number. To unsubscribe, please notify the Department at the same e-mail address noted.