NDFI MONTHLY MORTGAGE SUMMARY October 2008 Georgia Department of Banking & Finance-- Non Depository Financial Institutions Division Monthly MSuomntmhalyrySuomf mMoarrytgoafgMe oArcttgiavgietieAsctfiovrittiehse fPoerrtiohde EPnedriiondg EOncdtoinbgerAp2r0i0l 82007 Inside this issue: Page 1 NEWS NEWS ITEMS GEORGIA NEWS NMLS: Georgia's Transition Plan 1 2009 State Holidays 3 ADMINISTRATIVE ITEMS Administrative 4Actions 5 Licenses Approved & Reinstated 6 Licenses Revoked, 7Expired...Denied 8 Fines 8 Contact Information 9 Useful Links MORTGAGE FORMS: DBF.GEORGIA.GOV/ DBFMTGFORMS UPDATING LICENSE INFORMATION DBF.GEORGIA.GOV/ DBFMTGFORMS MORTGAGE SUMMARY DBF.GEORGIA.GOV/ DBFMTGSUMMARY Georgia's NMLS Transition Plan you can submit your completed NMLS record by filing the appropriate MU Form to the Department through that system. DBF renewals begin January 2, 2009. Secure and Fair Enforcement for Mortgage Licensing Act of 2008 Letter to Licensees and Registrants: To provide for compliance with the SAFE Act, the Georgia Department of Banking & Finance (Department) will begin using the CSBS/AARMR Nationwide Mortgage Licensing System (NMLS) on January 2, 2009. NMLS, developed through the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR), will allow your company to continue to conveniently manage its mortgage license in an electronic format through a secure website on NMLS, transferring many functions from the Department's automated system. Completing and submitting this transition record through NMLS will coincide with the submission of your renewal for the Department's renewal process this upcoming year. A copy of Department's transition plan can be found on the NMLS website at: www.stateregulatoryregistry.org/NMLS. Licensees/Registrants should use the information currently on file with the Department when transitioning onto the NMLS. Make certain all information is current before you transition your record to the new system. The following links will allow you to review current information on file, as well as obtain and verify branch record numbers for transition as needed. Your license number and password are required for access, and are generally those provided and used at the last renewal. Contact the Department should you need access. Georgia's Transition Plan As a part of the implementation of NMLS, each company holding a Georgia mortgage lender or broker/processor license or registration must create a company record (Form MU1) in NMLS for themselves and a record for each approved in-state Georgia branch (Form MU3), and electronically submit those to the Department between January 2, 2009 and April 1, 2009. Licensees and Registrants have from January 2, 2009 to April 1, 2009 to renew and transition their license with no penalty. Beginning April 2, 2009 and through to June 30, 2009 you may renew and transition but the late renewal fee of $300 will be assessed. Should you fail to renew and transition by the June 30, 2009 expiration of your current license or registration, the license or registration is considered to be expired, and a new/reinstatement application will be required to do residential mortgage business in Georgia. Such new application would require submission through the NMLS. NMLS is available now for you to begin completing your record at no charge. Beginning January 2, 2009, Any change in information after transition will need to be submitted as an amendment filing through the NMLS after system transition approval, so please make certain your information is accurate up-front. License Record, Address, Registered Agent, Contact Information: https://bkgfin.dbf.state.ga.us/MortgageDocs/ MBChanges.html Branch Information: https://bkgfin.dbf.state.ga.us/MortgageDocs/ MBRelocationBr.html Please note that there is a checklist of required items that must be submitted outside of the NMLS or completed on-line at the Department's website in order to approve your renewal/transition. The checklist is on the NMLS website, and includes the items noted on the following page. As noted, you will need an ID and password for Department items submitted outside of the NMLS. ("SAFE"Continued on page 2) Page 2 October 2008 News Items (Continued from page 1) Bond or Letter of Credit: One of these items, as applicable to your circumstance, must be on file and current. Submission required ONLY if not on-file and current. Fines: All outstanding fines must be paid. Should you have unpaid fines, these are payable on-line at the following site and are charged to your credit card or drafted from your bank account, depending upon your payment type. Website: https://bkgfin.dbf.state.ga.us/MortgageDocs/ MtgFinePay.html $6.50 per loan fees: All per loan fees must be paid. Payments can be made on-line. Available January 2009. Website: https://bkgfin.dbf.state.ga.us/GRMAFee.html Brokers/Processors *ONLY*: Continuing Education (CE) hours are required to renew. **CE requirement information is available on the internet at: http://dbf.georgia.gov/dbfmtgforms Post CE info at Website: https://bkgfin.dbf.state.ga.us/ MortgageDocs/MortgageRenewal.html . Available January 2009. Annual Questionnaire: Calendar year 2008 operating and disclosure data must be completed. Available January 2009. Post at Website: https://bkgfin.dbf.state.ga.us/ MortgageDocs/MortgageRenewal.html Failure to complete these requirements will result in a delay in the issuance of your renewal license/registration until the deficiencies are corrected. How to Access NMLS In order to gain access to NMLS for the first time you must complete a Company Account Request Form and identify a Primary Account Administrator and a Secondary Account Administrator. This form can be submitted electronically through the NMLS website in the "Getting Started" section. This form needs only to be submitted once per company, regardless of the number of NMLS participating states in which you are licensed. IF YOUR COMPANY ALREADY HAS ACCESS TO NMLS, THEN YOU DO NOT NEED TO DO THIS STEP. Once you complete and submit this form, the Primary Account Administrator will receive NMLS login information within 3 business days. The Primary Account Administrator for your company will have full rights to (1) access the System, (2) submit information to this Agency and other participating state mortgage regulators, and (3) set-up other company users in the System. Instructions and tutorials on how to access and use the System are also available on the NMLS website. The Nationwide Mortgage Licensing System is online at: www.stateregulatoryregistry.org/NMLS Loan Officers It is anticipated that there will be a bill proposing Georgia specific Loan Officer/Originator legislation in early 2009 in order to comply with the Federal SAFE Act. If passed, loan officers requiring a LO's license in Georgia will have to obtain that license through the NMLS. No action is currently required in NMLS for Georgia loan officers. Forms to Complete and Fees Once you access NMLS, you can complete the following MU Forms and submit the filing to the Department between January 2, 2009 and April 1, 2009 to avoid a late renewal fine. Instructions and tutorials on how to complete these forms are available online at the NMLS website listed above. 1. License/Registered companies submit a Form MU1. 2. Companies submit for each Control Person1 (in Georgia these include director, officer, partner, agent, employee, or ultimate equitable owner of 10 percent or more of the applicant or licensee or any individual who directs the affairs or establishes policy for the applicant or licensee) a Form MU2, as part of their Form MU1 filing. (1Before a Control Person's Form MU2 is submitted to the Department, the subject individual must first attest to the information contained in the form.) 3. Licensees submit for each approved Georgia Branch a Form MU3, along with the MU2 for each branch manager. Branch filing is not required for REGISTRANTS. In addition, Licensees DO NOT have to have approval of or file information for branches not located in Georgia. Only Georgia branch filings are required for Georgia licensees. If you have submitted these forms in another state, then you do not need to re-enter your company, branch or loan officer records into NMLS. You will only need to identify the appropriate license or registration type in Georgia that you are renewing and complete a few state specific fields. However, if you have not registered your in-state Georgia branches by means of filing Georgia branch information with any other state filings, or if this is your first NMLS filing, forms for these branches and the managers will need to be submitted as previously noted. You will need to have your Georgia license number and each branch location's record number (also on the DBF website) in order to transition your record. If you have Georgia branches that have not been pre-approved for operation in Georgia, the application for those branch approvals should be submitted before applying for your license renewal/transition. See branch application information at http://dbf.georgia.gov/dbfmtgforms. ( "SAFE"--Continued on page 3) October 2008 Page 3 News Items (Continued from page 2) Costs Renewal fees noted below are for an interim period license. To meet legislative requirements and to comply with the NMLS system requirements, the licensing period for licenses and registrations will be moved from the current fiscal year period of July 1 to June 30 to a calendar year period of January 1 through December 31. The renewal deadline will move from April 1 to December 1. These changes are anticipated to become effective in July 2009. Please note the schedule of license and registration fees for the interim FY2010 licensing period (July 1 to December 31, 2009): Brokers/Processors $350.00 Lenders 600.00 For companies and sole proprietor licensees and registrants transitioning an existing license or registration onto NMLS, a system processing fee of $100 per company license/registration and a system processing fee of $20 per approved Georgia branch (licensees only) will be required to be paid electronically through NMLS upon submission. These costs are included in the license/ registration fee noted above. The NMLS processing charges are applied on a per license/registration per state basis. The system processing fees for companies and branches will be deducted from the licensing fees noted above. (Reminder- Registrants are not required to report or register Georgia branch locations). On an ongoing basis, NMLS will annually charge at renewal a processing fee of $100 per company license and a $20 per licensed branch location, both of which are included in the annual licensing fees. There are no other NMLS processing fees. These processing fees pay for NMLS operations, including licensee system access 362 days per year, ability to maintain, renew and run reports on your licenses, and call center support. Georgia licensing, registration and other investigation/processing fees at the state level will still apply. NMLS Training The Department will be participating in a Training Workshop Audio Program & Webinar conducted by the State Regulatory Registry, LLC for Georgia licensees on December 10, 2008. This webinar will provide licensees and applicants with tips on using NMLS to transition and manage one or more licenses. The fee for this workshop is $50. NMLS Website The NMLS website (www.stateregulatoryregistry.org/NMLS) provides step-by-step instructions on how to access the system, guides on how to complete the MU Forms, each state's transition plans and requirements, tutorials, current and future participating states, system alerts, system processing fees and general background information. A reminder e-mail will be sent to all licensees and registrants-- PLEASE make certain your e-mail address is current! HOLIDAY DATE New Year's Day Martin Luther King Jr.'s Birthday Confederate Memorial Day Memorial Day Independence Day Labor Day Columbus Day Veterans' Day Thanksgiving Day Robert E. Lee's Birthday Washington's Birthday Christmas Day OBSERVANCE DATE Thursday, January 1 Monday, January 19 April 26 ~ will be observed Monday, April 27 Monday, May 25 July 4--will be observed Friday, July 3 Monday, September 7 Monday, October 12 Wednesday, November 11 Thursday, November 26 January 19 ~ will be observed on Friday, November 27 February 16 ~ will be observed on Thursday, December 24 Friday, December 25 Page 4 Administrative Actions October 2008 FINAL CEASE AND DESIST ORDERS Advantage Home Loan, LLC (Florida), Fort Lauderdale, FL (license no. 23129) Cease and Desist Order issued September 5, 2008 became final on October 7, 2008. Bradbury Financial Services, Inc., Macon, GA (license no. 17861) Cease and Desist Order issued September 19, 2008 became final on October 20, 2008. First Capital Mortgage Corp. (Illinois) dba fcmdirect.com, Chicago, IL (license no. 17164) Cease and Desist Order issued September 22, 2008 became final on October 22, 2008. Global Mortgage Lenders, LLC, Lawrenceville, GA (license no. 22009) Cease and Desist Order issued September 2, 2008 became final on October 2, 2008. KIS Financial Group, Inc., Loganville, GA (license no. 22681) Cease and Desist Order issued September 9, 2008 became final on October 9, 2008. Lawson 850 Mortgage, LLC, Fayetteville, GA (license no. 21632) Cease and Desist Order issued September 4, 2008 became final on October 4, 2008. McGrue, Iphigenia, Atlanta, GA Cease and Desist Order issued September 19, 2008 became final on October 10, 2008. Moss, Barbara M., Marietta, GA Cease and Desist Order issued September 19, 2008 became final on October 10, 2008. Moss, John W., Marietta, GA Cease and Desist Order issued September 19, 2008 became final on October 10, 2008. MortgageOne Financial Services Corp., Kissimmee, FL (license no. 20804) Cease and Desist Order issued September 30, 2008 became final on October 30, 2008. Nationwide Home Loans, Inc., Ft. Lauderdale, FL, (license no. 22259) Cease and Desist Order issued September 30, 2008 became final on October 30, 2008. Northside Mortgage Group, Inc., Cumming, GA (license no. 7080) Cease and Desist Order issued September 19, 2008 became final on October 20, 2008. NT Mortgage, LLC, Boca Raton, FL, (license no. 19474) Cease and Desist Order issued September 19, 2008 became final on October 20, 2008. Peachtree Mortgage Lending Group, LLC, Decatur, GA (license no. 23120) Cease and Desist Order issued September 25, 2008 became final on October 27, 2008. Prestige Funding, LLC, Waunakee, WI (license no. 21859) Cease and Desist Order issued September 22, 2008 became final on October 22, 2008. Smoke Rise Home Loans, Inc., Stone Mountain, GA (license no. 14955) Cease and Desist Order issued September 18, 2008 became final on October 18, 2008. Administrative Actions October 2008 CEASE AND DESIST ORDERS--LIFTED None Page 5 FINAL CONSENT ORDERS Family Home Loans, LLC, Tucker, GA (license no. 20392) Consent Order issued on October 9, 2008 became final on October 9, 2008. Landmac Mortgage Corporation, Tucker , GA (license no. 19740) Consent Order issued on October 14, 2008 became final on October 14, 2008. Olatunji, Paul M., Lawrenceville, GA - Consent Order issued on October 14, 2008 became final on October 14, 2008. Olatunji, Stella W., Lawrenceville, GA - Consent Order issued on October 14, 2008 became final on October 14, 2008. Rogers, Tony , Atlanta, GA - Consent Order issued on October 9, 2008 became final on October 9, 2008 SUPERIOR COURT INJUCTIONS--ISSUED None UPDATE NOTE-- FTC RED FLAG RULES On October 22, 2008, the FTC extended the final "Red Flag" rules compliance deadline for creditors. The extension applies to creditors under the jurisdiction of the FTC. It does not affect other federal agencies' enforcement. Also, the extension is not an extension of the deadline, but is a forbearance, or delay, of enforcement action for violation of the rules--until May 1, 2009. Creditors--mortgage entities--are reminded to get their program in place as quickly as possible. For more information go to: http://www.ftc.gov/ opa/2008/10/redflags.shtm Page 6 Administrative Actions October 2008 LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN OCTOBER 2008 ID# COMPANY NAME 23576 23633 23578 Lifetime Mortgage Services, LLC South Atlantic Mortgage Corporation Statewide Mortgage, LLC CITY Winder Albany Louisville ST MB CD GA B GA B KY B ORIGINAL APPROVAL 10-03-2008 10-03-2008 10-10-2008 RENEWAL 10-03-2008 10-03-2008 10-10-2008 REINSTATED 23634 Atlantic Finance, Inc. Dultuh GA B 23586 American Home Loans I, LLC 23588 WC Mortgage & Financial Advisors, LLC 23609 James Edward Shambo St. Petersburg Alpharetta Suwanee FL B GA B GA B 23617 Clarence Lee Smith Buford GA B 23621 Data Mortgage, Inc. Orange CA L 23645 Flagstone Home Capital, LLC Atlanta GA B 23608 Kelly Coye Price Duluth GA B 23610 Gause Mortgage Services, Inc. Marianna FL B 23612 Universal Mortgage & Finance, Inc. 23616 Kelley Kent Lawrence Edgewater Athens MD L GA B 23618 David John Pringle 23636 TNI Finances, Inc. Lawrenceville Uniondale GA B NY L 23637 Gary Hall Homes, Inc. Valdosta GA B 23648 Peoples Choice Home Loans, LLC Ochlocknee GA B 23659 Candor Mortgage Corporation Ellicott City MD B 16081 LenderLive Network Inc. * 23647 Urban Financial Group, Inc. Glendale Tulsa CO L OK L 23651 Equilliance, LLC Orlando FL B 23662 Seniors Reverse Mortgage, Inc. Pleasant Hill CA B 20616 ADT Interactive, LLC 20683 Regency Financial Services & Investments, Inc. San Francisco Laurelton CA B NY B 10-10-2008 10-17-2008 10-17-2008 10-17-2008 10-17-2008 10-17-2008 10-17-2008 10-24-2008 10-24-2008 10-24-2008 10-24-2008 10-24-2008 10-24-2008 10-24-2008 10-24-2008 10-24-2008 10-06-2000 10-31-2008 10-31-2008 10-31-2008 09-09-2005 09-09-2005 10-10-2008 10-17-2008 10-17-2008 10-17-2008 10-17-2008 10-17-2008 10-17-2008 10-24-2008 10-24-2008 10-24-2008 10-24-2008 10-24-2008 10-24-2008 10-24-2008 10-24-2008 10-24-2008 10-31-2008 10-31-2008 10-31-2008 10-31-2008 10-10-2008 10-24-2008 10-10-2008 10-24-2008 TOTAL: 25 Checks Submitted to the Department for Payment of Application Filings, Fees, Etc. The Department can no longer accept or process any stale dated checks over 30 days old. Please be aware that if we must delay processing of a check due to a delay in processing of an application, li- cense, etc., we will return the check with VOID across the face of the check and ask that a new check be submitted. October 2008 Administrative Actions Page 7 LICENSEES/REGISTRANTS REVOKED, EXPIRED, SURRENDERED, WITHDRAWN OR DENIED ID# 7080 11734 12001 12491 13416 14955 17164 17861 18050 19385 19474 19549 19740 19871 19894 19903 19941 20153 20186 20392 20743 20744 20745 20804 20917 21011 21135 21355 21473 21632 21733 21859 21981 22009 22045 22255 COMPANY NAME NORTHSIDE MTG GRP INC ORIGEN FINL LLC CWA FINL SVCS INC S ATLANTIC LENDERS (GA) CHATEAU MTG CORP SMOKE RISE HM LOANS INC 1ST CAP MTG CORP BRADBURY FINL SVCS INC LOAN SOURCE INC INTL LENDING INC NT MTG LLC CAP MTG SOLUTIONS INC LANDMAC MTG CORP WELLS FARGO FINL LEASING INGOMAR LTD PARTNERSHIP ALASKA SEABOARD PARTNERS CENTENNIAL MTG LENDERS MILESTONE RES MTG INC LEGACY MTG ASSOC LLC FAMILY HOME LOANS SNGC LLC SNBOA LLC DEL NORTE REFI LLC MTG1 FINL SVCS CORP POPULAR HOUSING SVCS INC INTERSTATE MTG NETWORK REGAL MTG FUNDING GRP INC HOLLANDER FINL HOLDING RES MTG PROFESSIONALS INC LAWSON 850 MTG LLC LIBERTY HM LENDING INC PRESTIGE FUNDING LLC COLONY MTG LENDERS INC GLOBAL MTG LENDERS SENTINEL HM MTG LP OPTAMERICA MTG INC CODE BD LD LD BD BD BD LD BD BD BD BD BD BD RD LD LD BD BD BD BD LD LD LD BD RD LD BD LD BD BD LD BD LD BD BD BD REVOKED 10-10-2008 10-10-2008 10-09-2008 EXPIRED 10-20-2008 10-18-2008 10-22-2008 10-20-2008 10-20-2008 10-30-2008 10-04-2008 10-22-2008 10-02-2008 SURRENDERED 10-14-2008 WITHDRAWN DENIED 10-20-2008 10-30-2008 10-03-2008 10-28-2008 10-20-2008 10-28-2008 10-20-2008 10-30-2008 10-30-2008 10-06-2008 10-08-2008 10-20-2008 10-20-2008 10-20-2008 10-20-2008 10-01-2008 10-20-2008 10-23-2008 10-21-2008 10-15-2008 10-06-2008 10-01-2008 10-06-2008 Page 8 Administrative Actions October 2008 LICENSEES/REGISTRANTS REVOKED, EXPIRED, SURRENDERED, WITHDRAWN OR DENIED ID# COMPANY NAME 22259 NATIONWIDE HM LOANS INC 22424 ATLANTIC MTG DIRECT LLC 22505 1ST MERIDIAN FINL LLC 22681 KIS FINL GRP INC 22790 BENCHMARK HM MTG INC 23120 PEACHTREE MTG LENDING GRP 23129 ADVANTAGE HM LOAN (FL) TOTAL: 43 CODE LD BD BD BD BD LD LD REVOKED EXPIRED 10-30-2008 SURRENDERED 10-09-2008 10-27-2008 10-07-2008 WITHDRAWN DENIED 10-24-2008 10-17-2008 10-15-2008 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 1 Licensee fined for Employment of a Felon 2 Licensees fined for Background Checks Violations 4 Licensees fined for Loans Files not properly maintained 5 Licensees fined for Books & Records 3 Licensees fined for Prohibited Act 1 Licensee fined for Unapproved Branch 3 Licensees fined for doing business w/ unlicensed entity 1 Licensee fined for Unapproved Branch Manager 1 Licensee fined for Employee under C&D or Revocation 4 Licensees fined for Unapproved Change in Management 1 Licensee fined for Failure to report violations/discharges 1 Licensee fined for 1099 Employee October 2008 Page 9 Georgia Department of Banking and Finance 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 CHANJGuEdINgDmICeAnTtO/CRSla&imMONRoTtGifAiGcEatLiIoCnENSE CODES--(In Tables) As a reminder to licensees during the renewal period, O.C.G.A. 7-1-1007 requires reporting to the Department on certain actions brought against licensees, and states the following: License Status Indicators (MB CD) - Mortgage License Codes "(a) A licensee shall give notice to the department by registered or certified mail or statutory over- night delivery of any action which may be brought against it by any creditor or borrower where such action is brought under this article, involves a claim against the bond filed with the department for the purp*oses of cUopmgprliaadneceBwroithkeCrotdoe LSeecntdioenr 7-1-1003 or 7-B1-1004, or involves a clBarimokfoerrdamages in excess of $25,000.00 for a broker and $250,000.00 for a lender and of any judgment which may be entered against it by any creditor or any borrower or prospective borrower, with details sufficient to identify the action or judgment, within 30 days after the commencement of any such action or the entry+of any sDucohwjundggrmadeentL. "ender to Broker L Lender The Department often obtains information regarding judgments and claims from public sources or other regulators, not from the licensee. It is important to remember that such notification to the Depa#rtment bUyptghreadliceeLnseenediesrretoquRireegdisbtyralanwt, and any lPicensee subject to suPchrocclaeimssoorrjudgment must report details to the Department according to the law as noted above. We're on the Web! dbf.georgia.gov Downgrade Registrant to Lender R 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. Also, please indicate which publication(s) you would like to receive. See the list under PUBLICATIONS on our home page.