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