NDFI MONTHLY MORTGAGE SUMMARY January 2008 Georgia Department of Banking & Finance-- Non Depository Financial Institutions Division Monthly MSuomntmhalyrySuomf mMoarrytgoafgMe oArcttgiavgietieAsctfiovrittiehse fPoerritohde EPnedriiondg EJnadnuinagryAp2r0i0l 82007 Inside this issue: Page 1 NEWS FY2009 Renewals 1 Continuing Ed 2 FY 2009 RENEWALS NEWS ITEMS W HERE & HOW TO FILE A RENEWAL link is available from the main mortgage forms web page: Advertising 3 Appointment 3 ADMINISTATIVE ITEMS Administrative Actions 4-5 Fines 5 Licenses Revoked, Expired...Denied 6 Licenses Approved & Reinstated 7 B eginning with the FY2009 License Renewal period, renewal notices to licensees will be distributed by E-MAIL only! https://bkgfin.dbf.state.ga.us/MortgageDocs/ FY2009Renewal.html The Department has endeavored to obtain your e-mail addresses for some time now in an effort to expedite the distribution of information and deliver other timely communications. W HAT TO DO ALL licensees will be responsible for the following on-line: As this has been an on-going effort, the Department will this year send out electronic renewal notices ONLY! So, in order to obtain renewal information and passwords to timely file renewal applications, licensees MUST provide the Department with a correct e-mail address. If you are reading this and did not receive it in your e-mail and you are the control person for your license, then the Department DOES NOT have your current e-mail address. Contact us as soon as possible to receive your notice and information. Notices will be sent to only one address per licensee, and note NO OTHER RENEWAL NOTICE WILL BE SENT TO THE LICENSEES! Updating and correcting license information; Completing the Calendar Year 2007 operating information questionnaire; 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. Useful Links MORTGAGE FORMS: DBF.GEORGIA.GOV/ DBFMTGFORMS UPDATING LICENSE INFORMATION DBF.GEORGIA.GOV/ DBFMTGFORMS MORTGAGE SUMMARY DBF.GEORGIA.GOV/ DBFMTGSUMMARY FY2009 license renewal notices will be sent during the first full week of February 2008. You may contact the office at renewal@dbf.state.ga.us if you have not received your renewal notification by February 11. 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 on- line renewal application contact the Department. N EW FEATURES NO hardcopy applications accepted. Payment must be made by ACH draft or credit card. Licensee notified by e-mal or fax ONLY if there are outstanding issues. License certificates will be sent via E-Mail beginning in mid-June. (See RENEWALS Continued on page 2) Page 2 January 2008 News--Continued Renewals (Continued from page 1) twelve hours of in-class or on-line time. Basically they C ONTINUING EDUCATION-BROKERS have been told that if they can "test-out" without spending the time, then a certificate can be issued. The continuing education requirement went into effect with the FY2008 licensing period. First of all, the purpose of the CE requirement is to provide information on industry issues about which the General Requirements: licensee has limited or little knowledge, or to provide updates on industry legislation, trends and developments. 12 Hours of Continuing Education credit must be The purpose is NOT to test the licensees on knowledge obtained between April 1 through March 31 of each that they should already have and with which to "test- licensing year--the qualifying 12 months for the current renewal period. out" . Licensees who fail to obtain credits by the April 1 Such a "test-out" program offered by any education deadline have until June 30 of that year to make up the provider approved by the Department is unacceptable, credits, but will receive a $1,000 fine for failure to have and if such a program is discovered, that provider's obtained credits in the qualifying 12 months for that continuing education courses will not be accepted for that renewal period. year and the issued certificates will not be valid to meet continuing education requirements. Any licensee affected If the CE hours are then not obtained in the make- by such a program will be notified. Failure to timely up period, the renewal will not be approved. complete acceptable continuing education will prevent Any person newly licensed after April 1 is required timely renewal and subject the licensee to fines. While to obtain 12 hours of CE credit in order to renew their this may seem punitive to a licensee taking the course, it license in the next year. in fact is not and would not be--licensees know that CE requirements are stated as "12 hours" for a reason, and If you received a new license between January 1 and testing out does not meet the purpose of a 12 hour March 31 of any year, license RENEWAL is required for requirement. the current year, obtaining CE Credits is not. And on that subject..... SURETY COMPANIES Continuing Education As noted, Department of Banking and Finance Rule 80-11- 4-.01, all brokers and processors must complete a minimum of twelve hours of continuing education ("CE") coursework dealing with elements of the mortgage broker process, federal law and rules, Georgia law and rules, applications and required documentation, fraud, ethics, or other topics pertinent to the operation of a mortgage brokering business in Georgia. At least one hour must be on fraud detection and prevention. This training can be completed on-line or in-class, but it is anticipated that at least 50 minutes of course time will be required for each hour of continuing education credits earned. A REMINDER TO ALL LICENSEES THAT IT IS IMPORTANT TO KNOW THE STATUS OF YOUR SURETY BOND COMPANY. The Georgia Insurance Commissioner's Office regulates the agency status for all companies and individuals authorized to conduct insurance business in Georgia. With the recent problems in the mortgage industry, several large insurers are anticipating earnings concerns and may no longer be writing surety bonds in Georgia. It is important that you check the status of your surety provider. It has come to the Department's attention, however, that some continuing education providers are issuing certificates to licensees for CE's without requiring the January 2008 Page 3 News--Continued ADVERTISING Fund Transfer Act. FTC said the letters on mortgage advertising resulted from the agency's review of advertising that claimed very low monthly payment amounts or interest S tate Law: rates without adequate disclosure of other important loan What is advertising? The Department of Banking and terms. The agency said it is pursuing several nonpublic investigations of home mortgage advertisers for potential Finance Rule 80-11-1-.02(f) defines it as material used or intended to be used to induce the public to apply for a Truth in Lending Act violations. View the FTC's letter. mortgage loan. Intended is easy; these are the newspaper and magazine ads, flyers, billboards, direct mail, or electronic advertisements geared specifically to have customers give you a call. It is often the other material used that has licensees calling the Department for guidance. Your web site is advertising. "Pop up" ads on the internet or via email are advertising. Material given to a real estate agent is advertising. So is material provided to another licensee, such as rates, even for current customers. Why? Because all are generated for the purpose of soliciting APPOINTMENT mortgage loan business. Business cards are specifically excluded under advertisement, but a letter from your company would be considered advertising if it was being Deputy Commissioner for the NonDepository Financial Institutions used to solicit business. Division Rod Carnes has been selected to chair the Mortgage All advertisements must have the name of the license and Fraud Committee of the American address on record, the words "Georgia Residential Mortgage Association of Residential Mortgage Licensee", and the license number. The licensee must Regulators (AARMR). maintain a sample of each advertisement. Other conditions apply. Fines may be assessed for violations as prescribed President of AARMR David under Department of Banking and Finance Rule 80-11-3-.01 Bleicken, who serves as the Director with the Bureau of (11) and (20). Refer to Code Section 7-1-1016 of the Licensing, Investigation and Consumer Services of the Official Code of Georgia Annotated and the Department of Pennsylvania Department of Banking, welcomed Rod as Banking and Finance Rule 80-11-1-.02 for more details. Chairman of this committee, indicating that Rod's experience and skills in mortgage regulation will prove to be invaluable to this committee. F ederal Law: The focus of this committee is on enhancing regulatory In 2007, the Federal Trade Commission issued more detection and prevention of mortgage fraud within the than 200 warning letters to mortgage brokers, lenders and industry as well as providing consumers with information media outlets about mortgage advertising that might to improve their knowledge for making sound decisions violate federal laws. The agency outlined its enforcement regarding their most important asset, their homes. activities in an annual report to the Federal Reserve Board Congratulations, Rod! on activities related to the Truth in Lending Act, Consumer Leasing Act, Equal Credit Opportunity Act and Electronic SPEAKING ENGAGEMENTS There are no upcoming speaking engagements for February, 2008. Page 4 January 2008 Administrative Actions CEASE AND DESIST ORDERS--ISSUED 1st Patriot Mortgage, Inc., Orange Park, FL (license no. 22216) Cease and Desist Order issued December 21, 2007 became final on January 21, 2008. Alicea, Kimberly, Lithonia, GA Cease and Desist Order issued December 19, 2007 became final on January 9, 2008. American Heritage Mortgage Group, Inc., Tampa, FL (license no. 21353) Cease and Desist Order issued December 10, 2007 became final on January 9, 2008. Braswell, William, Atlanta, GA Cease and Desist Order issued December 21, 2007 became final on January 21, 2008. Bruce, Glen, Tucker, GA Cease and Desist Order issued December 19, 2007 became final on January 9, 2008. Community Mortgage Corporation, Brockton, MA (license no. 22090) Cease and Desist Order issued December 18, 2007 became final on January 19, 2008. Deocap Corporation, San Francisco, CA (license no. 22087) Cease and Desist Order issued December 18, 2007 became final on January 17, 2008. Emerald Crown Services, Inc., Covington, GA Cease and Desist Order issued December 3, 2007 became final on January 4, 2008. Etete, Woyengitonbara "Bonita", Suwanee, GA Cease and Desist Order issued December 11, 2007 became final on January 1, 2008. Equinox Corporation (Delaware), Irvine, CA (license no. 22147) Cease and Desist Order issued December 10, 2007 became final on January 9, 2008. Gelin, Marie, Fairburn, GA Cease and Desist Order issued December 14, 2007 became final on January 4, 2008. Howard, Robert H., Rex, GA Cease and Desist Order issued December 18, 2007 became final on January 18, 2008. Nguyen, Evaline (aka Ha Truong), Tucker, GA Cease and Desist Order issued December 11, 2007 became final on January 1, 2008. Premier Funding, LLC dba Home Investment Mortgage of America, Fayetteville, GA, (license no. 16874) Cease and Desist Order issued December 11, 2007 became final on January 10, 2008. Tennessee Valley Mortgage Corporation, Chattanooga, TN (license no. 15480) Cease and Desist Order issued December 21, 2007 became final on January 21, 2008. January 2008 Page 5 CEASE AND DESIST ORDERS--LIFTED Advanced Mortgage Solutions, LLC, Douglasville, GA (license no. 20431) Cease and Desist Order issued December 19, 2007 was lifted on January 18, 2008. FINAL CONSENT ORDERS --ISSUED Ridley, Toni Andrews, Decatur, GA Consent Order issued on January 18, 2008 became final on January 18, 2008. SUPERIOR COURT INJUNCTIONS None FINE INFORMATION Information regarding fines assessed against a specific licensee, 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 8 Licensees fined for Advertising Violations 5 Licensees for Prohibited Acts 1 Licensees for Employment of a Felon 3 Licensees fined for Loan Files Not Properly Maintained 2 Licensees fined for doing business w/ Unlicensed Entity 1 Licensee fined for Employee under Cease & Desist Order or Revocation 3 Licensees fined for Background Checks Violation 5 Licensees fined for Books & Records 1 Licensee fined for failure to Respond to a Consumer Complaint 3 Licensee fined for Miscellaneous/Other 1 Licensee fined for Unapproved Branch Manager Page 6 January 2008 LICENSEES/REGISTRANTS REVOKED, EXPIRED, SURRENDERED, WITHDRAWN OR DENIED ID# 13905 14028 NAME PINNACLE FINL CORP BISHOPS GATE RES MTG TR CODE LD LD IN JANUARY 2007 REVOKED EXPIRED SURRENDERED WITHDRAWN 01-11-2008 01-11-2008 DENIED 14324 GELIN & ASSOCIATES, INC. 14400 OPTION ONE MTG SVCS INC BD 01-04-2008 LD 01-10-2008 15480 TN VALLEY MTG CORP BD 16167 NOTEWORLD LLC LD 16417 HOMESIDE MTG LLC BD 16517 SOUTHSIDE LENDING INC LD 16874 PREMIER FUNDING LLC LD 17298 HERITAGE LOANS INC BD 18177 ELITE MTG NETWORK INC BD 19175 GREENLAW, DIANNA PREECE PD 01-21-2008 01-10-2008 01-03-2008 01-14-2008 01-10-2008 01-16-2008 01-18-2008 01-25-2008 19248 19625 20204 TMC LENDING INC BURTON, LUTHER PREMIER MTG FUNDING,INC. 20478 GLOBAL EMPIRE PROPERTY BD BD LD 01-04-2008 BD 01-09-2008 01-07-2008 01-17-2008 20497 GLOBAL LENDING PARTNERS BD 01-10-2008 20840 OPTIMUM FUNDING GRP INC BD 01-11-2008 21308 PROQUEST MTG LLC LD 21353 AMER HERITAGE MTG GRP INC LD 01-09-2008 01-02-2008 21410 EMPYREAN MTG LLC BD 21461 JAY C AGAN INC BD 21951 FUTURE MTG LLC BD 22021 CAPFIRST MTG LLC BD 22087 DEOCAP CORP BD 22090 CMTY MTG CORP (MA) LD 22147 EQUINOX CORP (DE) PD 22216 1ST PATRIOT MTG INC BD 22687 REGENCY LENDING SOLUTIONS PD 01-17-2008 01-19-2008 01-09-2008 01-21-2008 01-04-2008 01-02-2008 01-07-2008 01-22-2008 01-02-2008 TOTAL: 29 January 2008 Page 7 ID# 23066 23081 LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN JANUARY 2008 COMPANY NAME CITY ST MB CD ORIGINAL RENEWAL Top of Mind Networks, LLC Post Creek Mortgage, LLC Sandy Springs Roswell GA B GA B APPROVAL 01-04-2008 01-04-2008 01-04-2008 01-04-2008 REINSTATED 23083 Lyon Services Corporation Mooresville NC L 01-04-2008 01-04-2008 23084 Golden Years Reverse Mortgage, Inc. 23086 Kykeisha B. Dickerson Bellevue Duluth WA B GA B 01-04-2008 01-04-2008 01-04-2008 01-04-2008 23093 Resource Mortgage.Com, LLC South Lyon MI B 01-04-2008 01-04-2008 23096 GE Money Mortgage Holding Company, LLC 22729 Sutton Funding, LLC # Burbank CA R New York NY R 01-04-2008 09-28-2007 01-04-2008 01-11-2008 23055 TRT Mortgage, Inc. Dacula GA B 01-11-2008 01-11-2008 23074 Legacy Mortgage Brokers, LLC Douglasville GA B 01-11-2008 01-11-2008 23082 Golden Isles Mortgage, LLC Brunswick GA B 01-11-2008 01-11-2008 23090 Security One Lending (Inc.) San Diego CA L 01-11-2008 01-11-2008 23054 American Dream Lending Group, Inc. 23068 Choice Mortgage Company Tampa Pontiac FL B MI L 01-18-2008 01-18-2008 01-18-2008 01-18-2008 23069 Real Estate Mortgage Funding, Baltimore MD B LLC 23097 MMW Holdings, LLC Gulf Breeze FL L 01-18-2008 01-18-2008 01-18-2008 01-18-2008 23098 Brightpath Mortgage, LLC Atlanta GA L 01-18-2008 01-18-2008 23108 Strategic Home Capital, LLC Alpharetta GA L 01-18-2008 01-18-2008 23121 Hometrac Mortgage, Inc. Louisville KY B 01-18-2008 01-18-2008 18961 Barclays Bank, PLC # New York NY R 10-22-2004 01-25-2008 23078 Real Time Resolutions, Inc. Dallas TX L 01-25-2008 01-25-2008 23088 Assurity Financial Services, LLC Englewood CA L 01-25-2008 01-25-2008 23092 Omni -Fund, Inc. (CA) Murrieta CA B 01-25-2008 01-25-2008 23115 Main Street Financial, Inc. Pendleton IN L 01-25-2008 01-25-2008 23118 Clairmont Financial Group, LLC Norcross GA B 01-25-2008 01-25-2008 23119 Hardcastle & Associates, LLC Atlanta GA B 01-25-2008 01-25-2008 23120 Peachtree Mortgage Lending Group, LLC 23127 CW Mortgage, Inc. Decatur GA L Suwanee GA B 01-25-2008 01-25-2008 01-25-2008 01-25-2008 23131 Jacob Dean Mortgage, Inc. Vienna VA B 01-25-2008 01-25-2008 23134 Fields Lawn Care & Construction, Dahlonega GA B Inc. 20431 Advance Mortgage Solutions, LLC Douglasville GA B 01-25-2008 05-20-2005 01-25-2008 01-18-2008 01-18-2008 TOTAL: 31 Page 8 January 2008 Georgia Department of Banking and Finance LICENSE STATUS CHANGE INDICATORS & MORTGAGE LICENSE CODES--(In Tables) 2990 Brandywine Road Suite 200 Atlanta, Georgia 30341-5565 Phone: (770) 986-1136 Fax: (770) 986-1654 or 1655 Email: dbfmort@dbf.state.ga.us License Status Indicators (MB CD) - Mortgage License Codes * Upgrade Broker to Lender B Broker + Downgrade Lender to Broker L Lender We're on the Web! dbf.georgia.gov # Upgrade Lender to Registrant P Downgrade Registrant to Lender R Processor Registrant Sign-up to Receive this Publication This publication is delivered to interested parties via e-mail and is also available from the Department's website at: http://dbf.georgia.gov. If you would like to be added to our distribution list, please send an e-mail to dbfpress@dbf.state.ga.us and indicate your name, the company you are with, and your phone number.