Monthly summary of mortgage activities, Feb. 2006

Georgia Department of Banking & Finance

NON-DEPOSITORY FINANCIAL
INSTITUTIONS

Monthly Summary of Mortgage Activities For the Period Ending February 2006

Inside this issue:

ACTIVITIES THAT REQUIRE LICENSING:
Applications, Pre-Quals, & ReferralsIndividuals & Companies

Telemarketing

1

FY 2007 Renewals

2

Treasury Bonds

2

Administrative Actions

3

Fines & Licensing Actions

5

2990 Brandywine Rd. Suite 200
Atlanta, GA 30341 Phone: 770.986.1269
Fax: 770.986.1029

The Department is often asked to clarify what activities require a license for a company to sell mortgage leads to licensees or collect information from potential borrowers. The requirement for a license depends on the information taken, which might be considered an "application" for state licensing purposes, as well as other factors. The following discussion applies whether the information is gathered through the use of standard phone telemarketing means, via the internet, or through any other means.
Individuals or companies who, at their own initiative and without a written contract to solicit from a Georgia Residential Mortgage Act (Act) licensee, contact Georgia consumers and generate a list of potential residential mortgage contacts for sale to GRMA licensees, are required to be licensed under the Act.
Those who contact Georgia consumers and generate a list of potential residential

mortgage contacts under a written contract to do so from a licensee are not required to be licensed under the Act provided:
The individual/company makes it clear that it is contacting the consumer on the behalf of a specific licensee;
The fee for the leads is a flat fee and not based on a "per loan closed" basis;
The individual/company must be in the lead generation business and not work solely for the licensee and perform any other mortgage related functions for the licensee;
The individual or company may only gather minimal contact type and non-specific property or other personal information from the consumer, such as property value ranges or income ranges. Information sufficient to verify credit, verify employment, income,

date of birth, etc. constitutes an application and cannot be collected by the individual or company unless it is individually licensed. If any of the above information is taken by the individual or company, then the licensee is required to record the transaction on the mortgage loan transaction journal. Also, the licensee is required to maintain a loan file for the transaction.
The contractual scenario provides for very limited mortgage data collection and mortgage type activity on the part of the individual or company in order to preclude the need for a license. As noted, the activity should be limited to minimal collection of general contact data that would allow the licensee to contact prospective borrowers based on their request for information.

Monthly Summary of Mortgage Activities For the Period Ending February 2006

Page 2

FY 2007
RENEWALS
FY2007 license renewal notices were mailed out February 6, 2006. You may contact the office at renewal@dbf.state.ga.us if you have not received your renewal notification. Please note the following:
O N-LINE ONLY!! NO hardcopy renewal application forms are available. Renewals must be made on-line. In the event you are absolutely unable to access the online renewal application contact the Department.
W HERE & HOW TO FILE A RENEWAL link is available from the main mortgage forms web page: https://bkgfin.dbf.state.g a.us/MortgageDocs/FY200 7Renewal.html.

Making fee and fine payments and attesting to the renewal information.
The licensee will be notified by either email or fax only if additional information is required. 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.
N EW FEATURES NO hardcopy applications accepted.
Payment must be made by ACH draft or credit card.
Licensee notified by emal or fax ONLY if there are outstanding issues.
AUDITS may no longer be used to qualify for licensing, and a surety bond or qualifying letter of credit is required.

Obtain initial hours in the period January 1, 2006 through March 1, 2007;
Credit reporting begins with FY2008 licensing period of 7-1-2007 to 6-30-2008.
NO continuing education credit reporting is required for the FY2007 renewal period.
Treasury Bonds
For those of you who work with compliance on the APR threshold for GAFLA and HOEPA, the Treasury has resumed issuance of 30-year bonds on a semiannual basis, which it stopped selling in March 2002. The first auction was in February 2006, and the next auction is scheduled for August 2006.

AUDITS DO NOT SUBMIT YOUR
AUDITED FINANCIALS TO THE
DEPARTMENT!
ONLY BONDS OR LETTERS
OF CREDIT MAY BE USED TO MEET THE FINANCIAL REQUIREMENTS FOR A
LICENSE!

W HAT TO DO ALL licensees will be responsible for the following on-line:
Updating and correcting license information;

C ONTINUING EDUCATION-BROKERS
The continuing education requirement goes into effect with the FY2008 licensing period.
General Requirements:

Completing the 12 hours of

Calendar Year 2005 continuing education

operating information;

credit required;

UPCOMING SPEAKING ENGAGEMENTS
Deputy Commissioner for Non-Depository Financial Institutions Rod Carnes will be speaking to the Atlanta Mortgage Bankers Association (AMBA) on Tuesday, March 14, 2006. The luncheon will be held at the Holiday Inn Select on Chamblee-Dunwoody Road.

ON-LINE ACCESS User ID Password

https://bkgfin.dbf.state.ga.us/MortgageDocs/FY2007Renewal.html Your License Number Your SSN or EIN on file with the Department

Administrative Actions

Page 3

CEASE AND DESIST ORDERS--ISSUED

Global Mortgage, Inc., Clearwater, FL, (license no. 19642) Cease and Desist Order issued February 3, 2006 became final on February 24, 2006.
Hale, Bonnie Clark, Lawrenceville, GA (license no. 20276) Cease and Desist Order issued January 12, 2006 became final on February 10, 2006.
Hess, JoAnn, Lawrenceville, GA (license no. 13364) Cease and Desist Order issued January 20, 2006 became final on February 21, 2006.
McCoy, Michael, College Park, GA Cease and Desist Order issued February 3, 2006 became final on February 23, 2006.
Millian Bishar-Ra Terrell, College Park, GA (license no. 11456) Cease and Desist Order issued January 20, 2006 became final on February 19, 2006.
Wayne Frier Home Center of Byron, LLC, Byron, GA (license no. 18349) Cease and Desist Order issued January 24, 2006 became final on February 23, 2006.

CEASE AND DESIST ORDERS--LIFTED
None
FINAL CONSENT ORDERS--ISSUED
Ologundudu, Michael Y., Marietta, GA Consent Order issued February 20, 2006 became final on February 20, 2006.
SUPERIOR COURT INJUNCTIONS
Brown, Sonya, Stone Mountain, GA - Superior Court Order issued February 9, 2006 became final on February 9, 2006.

Continued on Page 4

Monthly Summary of Mortgage Activities For the Period Ending February 2006
FINE PUBLICATION

Page 4

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

3 Licensees filed for Loan files not properly maintained

3 Licensees fined for Background Check Violations
2 Licensees fined for Books & Records 1 Licensee fined for Unapproved Branch 1 Licensee fined for Unapproved Branch Manager 1 Licensee fined for Change-In-Mgmt
without notice

1 Licensee fined for $6.50 fees not paid 2 Licensees fined for Prohibited Acts 1 Licensee fined for Prohibited Acts 1 Licensee fined for Miscellaneous/Other 1 Licensee fined for doing business with
Unlicensed Entity

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN FEBRUARY 2006

ID#

COMPANY NAME

CITY

ST

MB

ORIGINAL

RENEWAL REINSTATED

APPROVAL

20187 Birchwood Capital, LLC * 21063 America's First Choice
Lending 21115 Direct Mortgage Corp.
21151 BNP Paribas Mortgage Corp.
21157 Edwyn Kyle Barfield

Atlanta Suwanee
Salt Lake City New York
Snellville

GA

L

04-01-2005 02-03-2006

GA

B

02-03-2006 02-03-2006

UT

L

02-03-2006 02-03-2006

NY

L

02-03-2006 02-03-2006

GA

B

02-03-2006 02-03-2006

21159 Brooks Capital Lending Corp. Boynton Beach

FL

21161 Jennifer Cherise Howard

Union City

GA

21164 WW Financial Services, Inc. Atlanta

GA

21165 Fairfield Financial Mtg

Danbury

CT

Grp,Inc.

21167 Transcontinental Lending

Ft. Lauderdale

FL

Grp

21181 New Southern Mortgage,

Douglasville

GA

LLC

21185 Timberline Mortgage, Inc.

Hiawassee

GA

21204 CTM Finance Corporation Maitland

FL

20669 Hargrow & Associates, Inc. * Ann Arbor

MI

21116 Dorothy J. McKinzie

Woodstock

GA

21135 Regal Mtg Funding Grp, Inc. Cartersville

GA

B

02-03-2006 02-03-2006

B

02-03-2006 02-03-2006

B

02-03-2006 02-03-2006

L

02-03-2006 02-03-2006

L

02-03-2006 02-03-2006

B

02-03-2006 02-03-2006

B

02-03-2006 02-03-2006

L

02-03-2006 02-03-2006

L

08-19-2005 02-10-2006

B

02-10-2006 02-10-2006

B

02-10-2006 02-10-2006

Continued on Page 5

Monthly Summary of Mortgage Activities For the Period Ending February 2006

Page 5

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN FEBRUARY 2006

ID#

COMPANY NAME

CITY

21154 Superior Home Loan, Inc.

Doraville

21176 Professional Mtg Consultants Canton

ST

MB

ORIGINAL

RENEWAL REINSTATED

CODE

APPROVAL

GA

B

02-10-2006 02-10-2006

GA

B

02-10-2006 02-10-2006

21178 North American Home

Westlake

CA

B

02-10-2006 02-10-2006

Funding 21186 Thomas S. Johnston

Marietta

GA

B

02-10-2006 02-10-2006

21190 Barry William Honea

Marietta

GA

B

02-10-2006 02-10-2006

21191 AllState Financial Mtg, LLC Atlanta

GA

B

02-10-2006 02-10-2006

21205 Jason Bobby Hawkins

Atlanta

GA

B

02-10-2006 02-10-2006

21207 Southeast Georgia Equity, Inc.
21208 Abbey Investments, LLC

Saint Marys Lilburn

GA

B

02-10-2006 02-10-2006

GA

B

02-10-2006 02-10-2006

21064 Erik Waterman, Inc.

Marietta

GA

B

02-17-2006 02-17-2006

21086 Metamerica Mortgage

Virginia Beach

VA

L

02-17-2006 02-17-2006

Lenders, Inc. 21137 Absolute Mtg Co, Inc (PA)

West Chester

PA

L

02-17-2006 02-17-2006

21158 Fairway Independent Mtg

Sun Prairie

WI

Corp

21160 Rogers Lee Baxter

Stone Mountain

GA

L

02-17-2006 02-17-2006

B

02-17-2006 02-17-2006

21172 D.A.S.H. for LaGrange, Inc. LaGrange

GA

L

02-17-2006 02-17-2006

21174 Fidelity Professional Realty Lithonia

GA

B

02-17-2006 02-17-2006

21183 Luke Edward Daniels

Kennesaw

GA

B

02-17-2006 02-17-2006

21189 William Phillip Thomas

Cartersville

GA

B

02-17-2006 02-17-2006

21194 Jennifer Brewer-Maddox

Savannah

GA

B

02-17-2006 02-17-2006

21196 Strategic Capital Mortgage, Inc.
21200 Watermark Mortgage, LLC

Troy Cumming

MI

L

02-17-2006 02-17-2006

GA

B

02-17-2006 02-17-2006

21233 EPI Mortgage Center, Inc. Middlebury

CT

L

02-17-2006 02-17-2006

21059 Matrix Financial, LLC

Atlanta

GA

21089 Apex Financial & Inv, Inc.

Duluth

GA

21201 IIM Mortgage Services, LLC Atlanta

GA

21228 Loanation.com, Inc.

Corona

CA

21229 Pope Mortgage & Assoc, Inc. Ontario

CA

21254 Frantz Ciceron & Assoc, Inc. Brooklyn

NY

21056 Sallie Mae Home Loans, Inc. Novi

MI

21136 Greenleaf Financial, Inc.

Ellenwood

GA

21184 Mary D. Bairstow Mtg, Inc. Atlanta

GA

13196 Omni Financial Services, Inc. Hoffman Estates

IL

TOTAL: 48

B

02-24-2006 02-24-2006

B

02-24-2006 02-24-2006

B

02-24-2006 02-24-2006

B

02-24-2006 02-24-2006

B

02-24-2006 02-24-2006

B

02-24-2006 02-24-2006

L

02-03-2006 04-05-2006

B

02-03-2006 04-05-2006

B

02-03-2006 04-05-2006

B

02-13-1998 02-10-2006 02-10-2006

MB CODES B = BROKER L = LENDER R = REGISTRANT

*

Upgrade Broker to Lender

+

Downgrade Lender to Broker

#

Upgrade Lender to Registrant



Downgrade Registrant to Lender

Continued on Page 6

Monthly Summary of Mortgage Activities For the Period Ending February 2006

Page 6

LICENSEES/REGISTRANTS REVOKED, EXPIRED, SUSPENDED, WITHDRAWN OR DENIED

ID# NAME

CODE

IN FEBRUARY 2006
REVOKED EXPIRED SUSPENDED

WITHDRAWN

DENIED

5758

RES MTG BROKERS INC

BD

6024 WASHTENAW MTG CO LD

WELLS FARGO FINL

6641 ACC

RD

02-10-2006 02-16-2006 02-01-2006

11456 TERRELL, MILLIAN B

BD

13364 HESS, JOANN

BD

13485 GBC FUNDING INC

RD

WELLS FARGO FINL

16435 ACC

RD

16561 QUALITY MTG SVCS INC

BD

16643 SOURCE ONE MTG

BD

17371 ARENCIBIA FINL SVCS INC

BD

17541 1ST ST MTG CO

BD

17779 PARTNERSHIP MTG INC

BD

18349 WAYNE FRIER HM CTR BD

18451 LEEWORTH MTG CORP

BD

19174 AMER DIVERSIFIED MTG

BD

19354 PRIME LENDING LLC

BD

19540 AEGIS CORRESPONDENT

LD

19881 MYLOR FINL GRP INC

LD

20276 HALE, BONNIE CLARK

BD

TOTALS: 19

02-19-2006 02-21-2006
02-23-2006 02-10-2006

02-10-2006 02-01-2006 02-10-2006 02-24-2006 02-09-2006 02-09-2006 02-14-2006
02-06-2006 02-27-2006 02-14-2006 02-16-2006 02-06-2006

2006 Legislation
To check legislation pending for the 2005-2006 Legislative Session, go to the General Assembly's website at: http://www.legis.ga.gov/legis/2005_06/leg/legislation.htm