Georgia Department of Banking & Finance NON-DEPOSITORY FINANCIAL INSTITUTIONS Monthly Summary of Mortgage Activities For the Period Ending May 2006 NEWS ITEMS Inside this issue: Mortgage Fraud Declines 1 Press Releases 1 Net Branching 2 Predatory Lending 2 Customer Service Georgia 3 Administrative Actions 4 Fines & Licenses Revoked, Expired...etc. 6 License Approvals 8 2990 Brandywine Rd. Suite 200 Atlanta, GA 30341 Phone: 770.986.1269 Fax: 770.986.1029 Website URLs M&oWretbgasigtee FUrRaLusd& In GFeionregsia DecFliinneess of the Attorney General, law enforcement and prosecutors on local, state and federal levels, specific lenders in the industry, and the Georgia Real Estate Fraud Prevention & Awareness According to the latest figures Coalition. It has definitely been a released by the Mortgage Asset coordinated effort, which is what Research Institute, Inc., it takes to adequately address ("MARI") in its April 2006 re- such a widespread problem." port, mortgage fraud in Geor- Press Releases REVOCATION OF THE LICENSE OF ATLANTIC FINANCIAL MORTGAGE, INC. BECOMES FINAL MAY 9, 2006 gia is on the decline. Georgia On May 9, 2006, the Georgia has dropped from first to third The Department currently super- Department of Banking and in the nation in terms of mort- vises approximately 3,400 non- Finance's ("Department's") gage fraud and recorded the depository mortgage lenders, decision to revoke the mort- largest decrease in the MARI brokers, and processors. In gage broker's license of At- Fraud Index during 2005, which 2003, due to the volume of mort- lantic Financial Mortgage, indicates the amount of mort- gage fraud in the state of Geor- Inc., license number 18854, gage fraud reported in each gia, the Department instituted a located at 3598 Clairmont state. The report indicates the risk-based examination program, Road, Atlanta, Georgia 30319 decline may be due to passage of aggressive legislation and the which primarily focuses on investigating reported fraudulent activ- became final. enforcement by Georgia offi- ity. Since the implementation of cials. the risk-based examination pro- This notice of intent to re- gram, the volume of administra- voke license was issued by tive actions and referrals to law the Department after it ob- "While we are not happy that enforcement agencies have in- tained evidence that Atlantic Georgia remains a state with a creased greatly. In 2005, 64 Financial Mortgage purpose- significant amount of mortgage Cease and Desist Orders, 29 fully withheld or destroyed fraud, we are definitely pleased Consent Orders and 6 Revoca- information that was re- and encouraged that this re- tion Orders became final. In ad- quested during an examina- port reflects the progress that dition, the Department made tion and failed to properly is being made to combat the mortgage fraud referrals to law maintain a mortgage loan problem in Georgia," stated enforcement agencies totaling transaction journal. Commissioner Rob Braswell. "I more than $77 million. think the dramatic reduction in mortgage fraud in Georgia in 2005 is due to very aggressive efforts by many parties, includ- ing this Department, the Office Continued on Page 2 Monthly Summary of Mortgage Activities For the Period Ending May 2006 Page 2 (Continued from Page 1) REVOCATION OF THE LICENSE OF INTOWN FINANCING, INC . & CEASE AND DESIST ORDER TO SONIA BOOKER DANIELS FINAL MAY 15, 2006 On May 15, 2006, the Georgia Department of Banking and Finance's decision to revoke the mortgage broker's license of Intown Financing, Inc., license number 17325, located at 200 Renaissance Parkway, Suite 303, Atlanta, Georgia 30308 became final, as did the cease and desist order previously issued to its owner, Sonia Booker-Daniels. These actions were upheld by the Office of State Administrative Hearings, which found that evidence existed showing that Intown Financing, Inc. and Ms. BookerDaniels made misrepresentations in loan files submitted to mortgage lenders. expenses, loan applica- tions, documentation or other operating results to Predatory Lending the licensee, this is gener- ally evidence of net- HUD is proposing changes branching. to its regulations governing The following factors are Fannie Mae and Freddie used to determine if a Mac (collectively, the gov- branch is a net-branch: ernment sponsored enterprises or GSEs) to reinforce The lessee or owner of the efforts of HUD and the the property is not the GSEs to prevent predatory licensee; lending practices. The Employees are not changes proposed by this supervised and com- rule would allow HUD to pensated by the licen- keep up-to-date with and see, and are often combat new predatory paid on a 1099 basis; lending practices as they are discovered and, there- Expenses of the fore, strengthen HUD's branch are paid for by oversight role in monitoring the branch and not GSE practices to ensure accounted for on the that the loans the GSEs books of the licensee-- purchase are not contrary or a fee is charged to to responsible lending prac- the branch by the li- tices. The proposal can be censee which basically found under the 6-7-2006 covers all of the New Documents, Secre- branch's expenses tary of HUD's Regulation paid for by the licen- at: see; or A licensed lender does http://hudclips.org/ not fund the loans made by its branch. DATES: Comment Due Date: August 7, 2006. Net Branching Unfortunately, it bears repeating that, unlike some states, Georgia does not allow for net branches. When an existing licensee offers to allow another company or individual to use the licensee's name, license number, policies or procedures for a monthly operating fee or charge, without having that company being supervised by, or submitting FY 2007 LICENSE DISTRIBUTION REMINDER 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. The renewal website https:// bkgfin.dbf.state.ga.us/ MortgageDocs/ FY2007Renewal.html ADDRESSES: Interested persons are invited to submit comments regarding this rule to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 Seventh Street, SW., Room 10276, Washington, DC 20410- 0500. Interested persons also may submit comments electronically through the Federal e Rulemaking Por- tal at: http://www.regulations.gov. UPCOMING SPEAKING ENGAGEMENTS Deputy Commissioner for NDFI Rod Carnes and Director of Money Service Businesses and Mortgage Licensing Melinda Kinard will be speaking to the following organization: GAMB-Georgia Association of Mortgage Brokers, Thursday, June 15, 2006,9:00 a.m. Cobb Galleria Useful Links MORTGAGE FORMS: CODE, REGULATIONS & APPLICATIONS HTTP://WWW.STATE.GA.US/M ORTGAGE_FORMS.HTML UPDATING LICENSE INFORMATION HTTP://WWW.STATE.GA.US/D BF/MORTGAGE_FORMS.HTML# ONLINE PRESS RELEASES HTTP://WWW.GANET.ORG/DB F/BULLETINS.HTML Continued on Page 3 Customer Service Georgia Page 3 Governor Sonny Perdue has launched 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 customerfocused, 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: Larry received a thank you letter with comments such as "Thank you very much for going the extra mile..." and "We really appreciate your diligence in getting information that allowed you to honor our request instead of just saying `no'." Deborah Long, Assistant Review Examiner: Deborah received a thank you note with comments such as "How very nice it was of you to help me out with the information and to help me understand certain information..." and "Thank you for your time and consideration, your help was greatly appreciated." Melinda Kinard, Director of Money Service Businesses and Mortgage Licensing: Melinda received an e-mail from a licensee saying "Thanks for taking care of that like you said you would! Every time I call your department, I get nice people that truly help, thanks so much!" Janet Anderson, Senior Mortgage Review Examiner: Janet received a thank-you card for her efforts to assist an applicant through some pending matters concerning the application, saying "Great Appreciation". The following, while not individual recognition, is noted to commend the NonDepository Financial Institutions Division and the IT staff for the online license renewal process for mortgage licensees and registrants. Automation of formerly paper-based systems has greatly improved the process and a renewal applicant is able to review online the status of his/her application. We received several comments regarding the on-line renewal process such as: "Thank you for simplifying the process for us! I had no problem whatsoever." and "The online renewal process is great!" CONGRATULATIONS AND GREAT JOB!! Continued on Page 4 Administrative Actions For the Period Ending May 2006 Page 4 CEASE AND DESIST ORDERS--ISSUED Anderson-Torres, Nuri N., Atlanta, GA (license no. 18838) Cease and Desist Order issued April 13, 2006 became final on May 12, 2006. Daniels, Sonia Booker, Atlanta, GA Cease and Desist Order issued January 4, 2005 became final on May 15, 2006. Fast Funding Mortgage, LLC, Tarzana, CA Cease and Desist Order issued April 27, 2006 became final on May 28, 2006. Fennell, Ronald V., Athens, GA (license no. 20376) Cease and Desist Order issued April 13, 2006 became final on May 12, 2006. Graham, Toni S., Stone Mountain, GA Cease and Desist Order issued April 6, 2006 became final on May 7, 2006. Jeffcoat, Tammy Lorraine, Cartersville, GA (license no. 20085) Cease and Desist Order issued April 13, 2006 became final on May 12, 2006. Knox, Derrick Anthony, Stone Mountain, GA (license no. 19306) Cease and Desist Order issued May 1, 2006 became final on May 28, 2006. Krug, Michael T., Stockbridge, GA (license no. 14013) Cease and Desist Order issued April 13, 2006 became final on May 12, 2006. Loach (Beaty), Mindy, Ringgold, GA Cease and Desist Order issued April 13, 2006 became final on May 14, 2006. Mainstream Mortgage, Inc., Tucker, GA (license no. 6897) Cease and Desist issued April 26, 2006 became final on May 27, 2006. McGarvey, John Randolph, Duluth, GA (license no. 19267) Cease and Desist issued April 13, 2006 became final on May 12, 2006. Nguyen, Tich Van, Atlanta, GA Cease and Desist issued April 14, 2006 became final on May 5, 2006. Continued on Page 5 Administrative Actions For the Period Ending May 2006 Page 5 CEASE AND DESIST ORDERS--ISSUED (Continued) Premium Mortgage Group, Inc., Savannah, GA (license no. 20321) Cease and Desist issued April 27, 2006 became final on May 27, 2006. True Mortgage Corp., Alpharetta, GA (license no. 18616) Cease and Desist issued April 11, 2006 became final on May 11, 2006. Turner, Jerry L., Duluth, GA (license no. 15723) - Cease and Desist issued April 13, 2006 became final on May 12, 2006 CEASE AND DESIST ORDERS--LIFTED None FINAL CONSENT ORDERS--ISSUED None SUPERIOR COURT INJUNCTIONS None Continued on Page 6 Monthly Summary of Mortgage Activities For the Period Ending May 2006 FINE PUBLICATION Page 6 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 4 Licensees fined for Advertising Violations 3 Licensees fined for Background Checks 6 Licensees fined for Books & Records 1 Licensee fined for Employment of a Felon 1 Licensee fined for GaFLA FINE REASON 5 Licensees fined for Loans Files not properly maintained 3 Licensees fined for Prohibited Acts 1 Licensee fined for Renewal filed late 1 Licensee fined for Doing business w/ unlicensed entity 1 Licensee fined for Miscellaneous/Other LICENSEES/REGISTRANTS REVOKED, EXPIRED, SURRENDERED, WITHDRAWN OR DENIED In May 2006 ID# NAME CODE REVOKED EXPIRED SURRENDERED WITHDRAWN DENIED 6897 MAINSTREAM MTG INC BD 6978 MILTON MTG SVCS INC BD 12747 ACCREDITED MTG & FUNDING BD 14013 KRUG, MICHAEL T BD 05-27-2006 05-12-2006 05-02-2006 05-15-2006 14396 AMERICAP MTG CORP BD 05-04-2006 15014 IVANHOE FINL INC LD 05-22-2006 15182 MTG 4U GA INC LD 05-17-2006 15465 AMER FINL NETWORK INC LD 05-03-2006 15723 TURNER, JERRY L BD 05-12-2006 17325 INTOWN FINANCING, INC. BD 18616 TRUE MTG CORP BD 5-15-2006 05-11-2006 18824 IMAGINE MTG SOLU- TIONS LLC BD 18828 ACOUSTIC HM LOANS LLC LD 05-15-2006 05-03-2006 Continued on Page 7 Monthly Summary of Mortgage Activities For the Period Ending May 2006 Page 7 LICENSEES/REGISTRANTS REVOKED, EXPIRED, SURRENDERED, WITHDRAWN OR DENIED In May 2006 ID# NAME CODE 18838 ANDERSON-TORRES, NURI N BD 18854 ATLANTIC FINL MTG INC BD 19156 PAINLESS PROCESSING INC PD 19267 MCGARVEY, JOHN RANDOLPH BD 19306 KNOX, DERRICK ANTHONY BD 19568 STATEWIDE FUNDING INC BD 20085 JEFFCOAT, TAMMY LORRAINE BD 20321 PREMIUM MTG GRP INC BD 20376 FENNELL, RONALD VINCE BD 20461 AA LENDING CORP BD REVOKED 05-09-2006 EXPIRED 05-12-2006 SURRENDERED WITHDRAWN DENIED 05-12-2006 05-28-2006 05-12-2006 05-27-2006 05-12-2006 05-22-2006 05-30-2006 05-02-2006 20640 FAST TRACK FUNDING CORP BD 20978 ALLIANCE CAP MTG CORP BD 21179 SOUTHERN LENDERS INC BD 21207 SE GA EQUITY INC BD 05-17-2006 05-17-2006 05-15-2006 05-15-2006 21281 MTG SOURCE GA INC BD 05-15-2006 TOTAL: 28 Continued on Page 8 Monthly Summary of Mortgage Activities For the Period Ending May 2006 Page 8 LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN MAY 2006 ID# COMPANY NAME CITY MB ORIGINAL ST CODE APPROVAL RENEWAL REINSTATED 21299 Kingdom Lending, LLC Covington GA L 21320 Investors Lending Group, Inc. Melbourne Beach FL B 21360 21392 Northgate Real Estate & Development Premier First Financial, LLC Roswell College Park GA B GA B 21398 Legacy Financial Corporation Rockville MD L 21407 Real Financial, LLC Southfield MI B 21413 Nickel City Funding, Inc. Orchard Park NY B 21420 Today's Mortgages, LLC Cumming GA B 21443 The Milan Group, Inc. Doral FL L 13697 Money Source, Inc. + Marietta GA B 16400 Sunrise Financial, Inc. + Chicago IL B 18158 21274 Dunwoody Mortgage Services, LLC * PRN Revitalization, Inc. Suwanee Augusta GA L GA B 21277 Nations Mortgage Capital, Inc. Biloxi MS B 21371 21387 Simons & Leoni Home Loans, LLC Metro One Mortgage Corp. Tampa Lauderhill FL L FL B 21406 BH Mortgage Partners, LLC Suwanee GA B 21419 21421 21427 Acworth Mortgage and Billing, LLC First Equity Financial Corporation ABC Mortgage Funding, Inc. Kennesaw Parsippany Hudson GA B NJ L FL L 21452 Meca Financial Group, Inc. Tucker GA B 21474 21490 Dunhill Mtgs and Leasing Svc, LLC Options Mortgage Services, LLC Lawrenceville Buford GA B GA B 21491 Martin Sidney Riggle Acworth GA B 20674 Your Mortgage Source, LLC * Alpharetta GA L 21388 Sams Mortgage Solutions, Inc. Davie FL B 21393 21409 Equity Leadership Mortgage Group, Inc. J C Mortgage Group, LLC Centennial Buford CO B GA B 21410 Empyrean Mortgage, LLC Ellijay GA B 21414 First Coast Mortgage, LLC Jacksonville FL B 21433 Samuel H. Barbre Summerville GA B 21450 Lending 1st Mortgage (Inc.) Anaheim CA L 21457 Timothy Alfred Roberts Kennesaw GA B 21461 Jay C. Agan, Inc. Atlanta GA B 05-05-2006 05-05-2006 05-05-2006 05-05-2006 05-05-2006 05-05-2006 05-05-2006 05-05-2006 05-05-2006 07-10-1998 05-11-2001 03-07-2003 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 09-16-2005 05-19-2006 05-19-2006 05-19-2006 05-19-2006 05-19-2006 05-19-2006 05-19-2006 05-19-2006 05-19-2006 05-05-2006 05-05-2006 05-05-2006 05-05-2006 05-05-2006 05-05-2006 05-05-2006 05-05-2006 05-05-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-12-2006 05-19-2006 05-19-2006 05-19-2006 05-19-2006 05-19-2006 05-19-2006 05-19-2006 05-19-2006 05-19-2006 05-19-2006 Continued on Page 9 Monthly Summary of Mortgage Activities For the Period Ending May 2006 Page 9 LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN MAY 2006 ID# COMPANY NAME CITY 21466 A and E Foundation, LLC 21467 21489 21492 Option One Lending Solutions, Inc. All Capital Mortgage Funding, Inc. BCE Financial Corporation 21510 Allied Mortgage Group, Inc. 14840 20482 21375 Apex Lending, Inc. * First Fidelity Centers, Inc. + Charles Edward Tolliver, Sr. 21445 21447 M H & R Financial Services, Inc. Timothy Jay Anthony 21470 Lisa Kalein McDaniel 21497 American Titan Mortgage, LLC 21515 21516 21518 New Horizon Home Loans, LLC Mortgage Sources Corp. (Kansas) eMit Mortgage, Inc. 19134 20445 Financial Resources and Assistance of the Lakes Region, Inc. The Loan Page, Inc. 18022 N B Mortgage, Inc. TOTAL: 52 Issaquah Norcross Hialeah Atlanta Bala Cynwyd Indian Shores Tarzana Atlanta Atlanta Kennesaw Marietta Hiram Sugar Hill Overland Park Duluth Meredith Kirkland Jonesboro MB ORIGINAL ST CODE APPROVAL RE- REINSTATED NEWAL WA B 05-19-2006 05-19-2006 GA B 05-19-2006 05-19-2006 FL B 05-19-2006 05-19-2006 GA B PA L FL L CA B GA B GA B 05-19-2006 05-19-2006 09-10-1999 06-17-2005 05-26-2006 05-26-2006 05-19-2006 05-19-2006 05-26-2006 05-26-2006 05-26-2006 05-26-2006 GA B GA B GA B GA B 05-26-2006 05-26-2006 05-26-2006 05-26-2006 05-26-2006 05-26-2006 05-26-2006 05-26-2006 KS B 05-26-2006 05-26-2006 GA B NH B 05-26-2006 04-02-2004 05-26-2006 05-05-2006 05-05-2006 WA B GA B 09-23-2005 01-10-2003 05-05-2006 05-26-2006 05-05-2006 05-26-2006 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.