Georgia Department of Banking & Finance NON-DEPOSITORY FINANCIAL INSTITUTIONS Monthly Summary of Mortgage Activities For the Period Ending March 2006 Inside this issue: FY 2007 Renewals 1 License Information 2 Advertising 2 Administrative Actions 3 Fines & Licensing 5 Actions FY 2007 RENEWAL INFORMATION FY 2007 Renewal Period Information The FY 2007 open license renewal application period ended April 1, 2006. A license renewal fee not received on or before the first day of April of each year is penalized a late fee of $300. Any licensee who failed to renew their license by the April 1 deadline may still renew their license on-line (see information below). However, after the application information has been entered, the late renewal fee of $300 will be reflected on the payment screen in addition to the annual license renewal fee for the type of license being renewed. The late renewal period will close June 30, 2006. If a licensee does not renew their license by the close of business on that day, the license will be considered to be expired. No new mortgage business may be conducted under an expired license! In order to conduct GRMA business, an expired license will have to be reinstated. To reinstate a license after June 30, 2006 applicants must complete and submit a "REINSTATEMENT APPLICATION". This is an option within the standard 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. FY 2007 LICENSE DISTRIBUTION FOR THOSE LICENSEES WHO HAVE SUCCESSFULLY COMPLETED THE RENEWAL OF THEIR LICENSE FOR FY2007, PLEASE NOTE THAT NEW LICENSES FOR THE YEAR WILL BE MAILED OUT BEGINNING MID TO LATE JUNE 2006. IF YOU DO NOT RECEIVE YOUR NEW LICENSE BY THE FIRST WEEK OF JULY, PLEASE CONTACT THE OFFICE. & THANKS AGAIN OUR FIRST YEAR OF "ON-LINE ONLY" RENEWALS HAS BEEN A SUCCESS. FOR THOSE WHO EXPERIENCED THE PROCESS DURING PEAK LOAD TIME, WE APPRECIATE YOUR PATIENCE, AND WE HOPE TO HAVE AN UPGRADED SYSTEM BEFORE THE NEXT RENEWAL PERIOD. AGAIN, MANY THANKS! The Renewal Application form WILL NOT be accepted to reinstate a license. All fines and fees must be paid before a license will be issued. 2990 Brandywine Rd. Suite 200 Atlanta, GA 30341 Phone: 770.986.1269 Fax: 770.986.1029 Website https://bkgfin.dbf.state.ga.us/MortgageDocs/FY2007Renewal.html User ID Password Your License Number Your SSN or EIN on file with the Department Monthly Summary of Mortgage Activities For the Period Ending March 2006 Page 2 KEEPING YOUR LICENSE INFORMATION CURRENT One of the functions of an endeavor such as the new on-line renewal system is that it requires up-to-date licensee data in order for the licensee to renew. Case in point: Requiring current SSNs or EINs. Many licensees trying to renew were unable to access the system because the Department's database did not reflect a change in the EIN number for the company, or the original license application used a spouse's or former partner's SSN, and a change in information was never updated in the licensee's record. Please remember to notify the Department of any significant ID, contact, address, etc. information. Some information may only be updated by submitting a hardcopy letter notification, such as that for a change in SSN or EIN. Other information may be changed by using the information update options on the website at: http://www.state.ga.us/d bf/mortgage_forms.html# OnLIne On that page you will see the options noted below. Use these links to update the pertinent information which has already been entered and approved. Remember that NEW Branches and/or NEW Branch Managers (approved branch but with a new manager) require approval, and can only be entered by submitting a hardcopy application. Contact the Department if you have other information updates for which there is no update link or form on the web. Advertising Billboards / advertising signs, flyers, and web sites are all considered advertisements for purposes of the Georgia Residential Mortgage Act ("GRMA") and must satisfy all requirements of Section 7-1-1016 of the Official Code of Georgia Annotated (O.C.G.A.) & Department Rule 80-11-1-.02. Ads for loans regulated by GRMA have the following requirements: (1) may not be false, misleading, or deceptive; (2) shall contain the name, license number, and an office address which conforms to a name and address on record with the Department; and (3) shall include the words "Georgia Residential Mortgage Licensee" or, for those advertisers licensed in more than one state, a listing of Georgia as a state in which the advertiser is licensed. Additionally, every person required to be licensed or registered under GRMA is required to maintain a record of samples of its advertisements, including commercial scripts of all radio and television broadcasts for review by the Department. The reason often cited for advertising violations is that a loan officer or a branch manager, without licensee knowledge or approval, distributed nonconforming flyers, posted signs, or put up a web site that was missing one or more of the required advertising elements. To avoid such violations and fines, management should put in place adequate policies, procedures, guidelines, and controls for ads that assure compliance with the provisions of GRMA. Additionally, compliance with said procedures, guidelines, and controls should be monitored on an ongoing basis. UPCOMING SPEAKING ENGAGEMENTS Deputy Commissioner for NDFI Rod Carnes will be speaking to the following organizations: Savannah Mortgage Bankers Association, Tuesday May 16, 2006, Savannah, GA. Georgia Financial Services Association, Monday, May 22, 2006, Savannah, GA. Useful Links DO-NOT-CALL RULES GEORGIA DO NOT CALL: WWW.GANOCALL.COM FEDERAL FTC DO NOT CALL: HTTP://WWW.FTC.GOV/ DONOTCALL/ FACTA: SAFEGUARDING CONSUMER CREDIT INFORMATION & RECORDS DISPOSAL: HTTP://WWW.FTC.GOV/ OPA/2004/11/FACTADIS POSAL.HTM LEGISLATIVE INFORMATION: http:// www.legis.ga.gov/ legis/2005_06/leg/ legislation.htm Continued on Page 3 Administrative Actions For the Period Ending March 2006 Page 3 CEASE AND DESIST ORDERS--ISSUED Akinsunmi, Femi, Duluth, GA Cease and Desist Order issued April 21, 2005 became final on March 21, 2006. American Fidelity, Inc., ((former license no. 13774) Cease and Desist Order issued February 2, 2006 became final on March 5, 2006. Caquias, Sherila, Lawrenceville, GA Cease and Desist Order issued February 10, 2006 became final on March 3, 2006. Executive Home Lending-Georgia, LLC, Ooltewah, TN (license no. 20337) Cease and Desist Order issued January 30, 2006 became final on March 1, 2006. First Capital Funding Group, LLC, College Park, MD (license no. 20785) Cease and Desist Order issued February 13, 2005 became final on March 12, 2006. Gaysovna, Emily, Buford, GA Cease and Desist Order issued February 24, 2006 became final on March 17, 2006. Guerrero, Laura, Lawrenceville, GA Cease and Desist Order issued February 24, 2006 became final on March 17, 2006. Hickman, Horace, Decatur, GA Cease and Desist Order issued February 13, 2006 became final on March 16, 2006. Hurst, William T., III, Carrollton, GA, Carrollton, GA (license no. 19234) Cease and Desist Order issued February 2, 2006 became final on March 4, 2006. Jenkins, Leonard, Savannah, GA Cease and Desist Order issued February 27, 2006 became final on March 30, 2006. Kirkland, Travis Mitchell, Atlanta, GA Cease and Desist Order issued February 14, 2006 became final on March 17, 2006. LowerRate.com, (former license no. 15284), Costa Mesa, CA Cease and Desist Order issued February 2, 2006 became final March 5, 2006. Makinde, Olusegun Abayome, Fayettevile, GA Cease and Desist Order issued February 14, 2006 became final on March 7, 2006. Continued on Page 4 Administrative Actions For the Period Ending March 2006 Page 4 CEASE AND DESIST ORDERS--ISSUED (Continued) Martin, Diana, Atlanta, GA Cease and Desist Order issued July 12, 2004 became final on March 2, 2006. Pupo, Paul, Norcross, GA Cease and Desist Order issued February 24, 2006 became final on March 17, 2006. Savannah Discount Housing, Inc., Savannah, GA (license 16972) Cease and Desist Order issued February 14, 2006 became final on March 20, 2006. Universal Holdings Associates, LLC, Savannah, GA (license no. 13849) Cease and Desist Order issued February 14, 2006 became final on March 21, 2006 CEASE AND DESIST ORDERS--LIFTED None FINAL CONSENT ORDERS--ISSUED None SUPERIOR COURT INJUNCTIONS Funk, Karen, Snellville, GA - Superior Court Order issued March 9, 2006 became final on March 9, 2006. Continued on Page 5 Monthly Summary of Mortgage Activities For the Period Ending March 2006 FINE PUBLICATION Page 5 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 6 Licensees fined for Advertising Violations 2 Licensees fined for Acq. of 25% ownership without notice 2 Licensees fined for Background Check 4 Licensees fined for Books & Records 1 Licensee fined for failure to Consumer Complaint 1 Licensee fined for Employment of a Felon 1 Licensee fined for Loan files not properly maintained 51 Licensees fined for $6.50 fees not paid 1 Licensee fined for Prohibited Acts 1 Licensee fined for doing business with unlicensed entity ID# 21179 21255 21278 5889 LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN MARCH 2006 MB ORIGINAL COMPANY NAME Southern Lenders, Inc. CITY Waycross ST CODE GA B APPROVAL 03-03-2006 RENEWAL 03-03-2006 REINSTATED Alairian Mortgage Company, Tucker GA B Inc. Guarantee Mortgage Corpora- Covington GA B tion Springfield Financial Corporation + Douglasville GA B 03-03-2006 03-03-2006 06-18-1993 03-03-2006 03-03-2006 03-10-2006 20040 DCG Home Loans, Inc. * Irvine CA L 21202 Shalom Mortgage, Inc. Kennesaw GA B 21243 Mary Popham Walker Carrollton GA B 21138 D & L Brokerage, Inc. Brooklyn NY L 21162 Lighthouse Mortgage Group, Kennesaw GA B LLC 13975 Lowry Mortgage Network + Atlanta GA B 18987 Advanced Funding Associates * Atlanta GA L 20802 U R Services, Inc. * Alpharetta GA L 21083 21220 Innovative Financial Solution, Inc. Set2Go Loans, Inc. Erie Irvine PA B CA B 21263 Susan W. Bruno Dahlonega GA B 21267 EFC Realty Group II, Inc. Marietta GA B 21241 FBS Capital, Inc. Alpharetta GA B 21268 New Choice Mortgage, LLC Lithonia GA B TOTAL: 18 01-14-2005 03-10-2006 03-17-2006 03-24-2006 03-24-2006 10-09-1998 06-11-2004 10-14-2005 03-03-2006 03-03-2006 03-03-2006 03-03-2006 03-10-2006 03-10-2006 03-10-2006 03-10-2006 03-17-2006 03-24-2006 03-24-2006 03-31-2006 03-31-2006 03-31-2006 03-03-2006 03-03-2006 03-03-2006 03-03-2006 03-10-2006 03-10-2006 Continued on Page 6 Monthly Summary of Mortgage Activities For the Period Ending March 2006 Page 6 LICENSEES/REGISTRANTS REVOKED, EXPIRED, SURRENDERED, WITHDRAWN OR DENIED IN MARCH 2006 ID# Name 6185 Flexible Solutions Inc 7271 7493 12199 Cmty Hm Mtg Inc Mlsg Inc Long Beach Mtg Co 12322 Access Cap Inc 12489 Bombardier Cap Inc 13849 Universal Holdings Assoc 14282 Southland Log Hms Mtg CO 17135 Alpha Mtg Svcs Inc 15235 D&M Finl Corp 16972 Savannah Discount Housing 17429 17976 18750 RCI Mtg Inc Platinum Plus Financial Services, Inc. Mtg Land Inc 19234 Hurst, William T III 19797 Lumina Mtg Co Inc 19985 Sanders, Brenda Knight 20189 Wilson, Dean 20337 20701 20785 Executive Hm Lending-Ga Clocktower Mtg Co Inc 1st Cap Funding Grp Llc TOTAL: 21 CODE BD BD LD RD BD LD BD BD BD LD BD BD BD BD BD RD BD BD BD BD LD REVOKED 03-21-2006 03-21-2006 EXPIRED 03-21-2006 03-20-2006 03-04-2006 03-01-2006 03-12-2006 SURRENDERED WITHDRAWN DENIED 03-09-2006 03-31-2006 03-28-2006 03-06-2006 03-15-2006 03-31-2006 03-15-2006 03-29-2006 03-14-2006 03-08-2006 03-30-2006 03-24-2006 03-29-2006 03-06-2006 MB CODES B = BROKER L = LENDER R = REGISTRANT * Upgrade Broker to Lender + Downgrade Lender to Broker # Upgrade Lender to Registrant Downgrade Registrant to Lender 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 e-mail 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.