NDFI MONTHLY MORTGAGE SUMMARY March 2008 Georgia Department of Banking & Finance-- Non Depository Financial Institutions Division MonthlyMSounmthmlyarSyumofmMaoryrtogfagMeorAtcgtaigveitAiecstifvoitrieths efoPretrhioedPEenrdioidngEMndairncgh A2p0r0il82007 Inside this issue: Page 1 NEWS NEWS ITEMS NATIONAL NEWS Conforming Loan Limits 1 GEORGIA NEWS GCIC Checks 1 Renewals 2 Credit Scam 2 ADMINISTRATIVE ITEMS Administrative Actions 3-4 Fines 4 Licenses Revoked, Expired...Denied 5 Licenses Approved & Reinstated 6 Customer Service Stars 6 Useful Links MORTGAGE FORMS: DBF.GEORGIA.GOV/ DBFMTGFORMS UPDATING LICENSE INFORMATION DBF.GEORGIA.GOV/ DBFMTGFORMS MORTGAGE SUMMARY DBF.GEORGIA.GOV/ DBFMTGSUMMARY NATIONAL NEWS Temporary Change in Conforming Loan Limits--FHA (From HUD Website www.fha.gov) Effective March 6, 2008, HUD will offer temporary FHA loan limits that will range from $271,050 to $729,750 (Limits). Overall, the change in loan limits will help provide economic stability to America's communities and give nearly 240,000 additional homeowners and homebuyers a safer, more affordable mortgage alternative. The maximum amount of $729,750 will only be applicable to extremely high-cost metropolitan areas. Previously, FHA's loan limits in these very high-cost areas were capped at $362,790. The Economic Stimulus Act of 2008 permits FHA to insure loans on amounts up to 125 percent of the area median house price, when that amount is between the national minimum ($271,050) and maximum ($729,750). The new minimum and maximum loan limits are based on 65 percent and 175 percent of the conforming loan limits for Government-Sponsored Enterprises in 2008, which is $417,000. The FHA used a combination of existing government data sets and available commercial information to determine the median sales price for each area. The change in loan limits are applicable to all FHAinsured mortgage loans endorsed with HUD's publication of the increased loan limits today, and it lasts until December 31, 2008. By increasing loan limits nationwide, FHA will provide much needed liquidity and stability to housing markets across the country. Already, as conventional sources of mortgage credit have been contracting, FHA has been filling the void. From September to December 2007, FHA facilitated more than $38 billion of much-needed mortgage activity in the housing market, more than $15 billion of which was through FHASecure, FHA's refinancing product. By focusing on 30-year fixed rate mortgages, FHA helps homeowners avoid and escape the risks associated with exotic subprime mortgage products, which have resulted in rising default and foreclosure rates. "This is not an easy crisis to address, and there is no silver-bullet, but I know that we can help hundreds of thousands of people keep their homes, and we can calm the waters," said HUD Secretary Jackson. In January 2009, FHA's maximum loan limit will return to $362,790, unless the U.S. Congress approves bipartisan legislation to permanently increase loan limits as part of the FHA Modernization bill, which is still awaiting final approval on Capitol Hill. To read the loan limits mortgagee letter, visit: http://www.hud.gov/offices/adm/hudclips/ letters/mortgagee/08-06ml.doc If you need to determine the FHA mortgage limits for your area or several areas, and then list them by state, county, or Metropolitan Statistical Area, visit: https://entp.hud.gov/idapp/html/hicostlook.cfm GEORGIA NEWS GCIC Checks Not performing the required Georgia Crime Information Center ("GCIC") background check for employees is a common violation cited by examiners. Many licensees are employing third-party companies to perform the required background checks, but are still not in compliance. Often, third-party (Continued on page 2) March 2008 Page 2 News--Continued ("Background Checks" Continued from page 1) background checks do not contain an individual's full criminal history, as many only search public records for the past seven or ten years, and/or do not search the GCIC database. It is important that all licensees, whether located in Georgia or not, are performing the correct background check. The Department holds the licensee responsible if it employs a felon. The simplest way to ensure that your background check is in compliance is to obtain it from a local sheriff's office or police department in the state of Georgia. GCIC background checks are not restricted to a certain time limitation and contain a subject's identification data, arrest data (including arresting agency, date of arrest, and charges), final judicial disposition data submitted by a court, prosecutor, or other criminal justice agency, and custodial information if the offender was incarcerated in a Georgia correctional facility. In addition to performing GCIC background checks on Georgia employees, the Department recommends that all licensees located outside the state of Georgia obtain criminal history records on employees from their local criminal justice agency. This will help ensure that licensees do not employ a convicted felon, which is strictly prohibited regardless of their position or job duties with the company. Don't get cited for this violation, or worse, do not get revoked for hiring a convicted felon. Perform the proper background check! More information on GCIC is available at http://www.ganet.org/gbi/crimhist.html. FY 2009 Renewals your renewal. We will contact you if additional information is required. License certificates will be sent out by e-mail ONLY! So please make certain we have a valid e-mail address. Corrections can be made at: https://bkgfin.dbf.state.ga.us/MortgageDocs/ MBContactChng.html BROKERS/PROCESSORS ONLY - CONTINUING EDUCATION REQUIREMENT If you failed to meet the continuing education requirement of obtaining credits by March 31, then a $1,000 fine will be assessed, in addition to the $300 late renewal fine which was assessed as of April 4. In order to renew, the continuing education credits must be obtained prior to June 30, 2008, both fines noted above must be paid, and the on-line renewal completed. CREDIT SCAM The Department has become aware of a credit repair scam targeting banks, credit unions, finance companies and mortgage lenders. Creditors have reportedly granted loans to perpetrators based on "cleaned up" credit reports. Perpetrators take advantage of the Fair Credit Reporting Act to dispute accounts that have negatively impacted their credit scores. They also may file police reports alleging they were victims of identity theft. The resulting police reports are then used to file disputes with the credit reporting agency. Because the credit reporting agency has 30 days to verify the derogatory information or delete the information from the credit reports, derogatory information may be deleted if the agency cannot investigate the complaint within the specified time period. This results in an improved "cleaned up" credit score. The FY2009 license renewal deadline has come. Late renewal fines will be assessed, and for broker/processor licensees who failed to obtain Continuing Education credits prior to April 1, the $1,000 fine will also be assessed. Closer scrutiny of loan requests may be appropriate where identity theft alerts are known to have been filed. Financial institutions suspecting activity of this nature should file a Suspicious Activity Report (SAR). Should any additional information be required for any license renewal, the licensee will be contacted by e-mail or fax ONLY. Renewals requiring additional information cannot be approved until such information is received and issues resolved. With few exceptions, all outstanding fines and fees must be paid. As most licensees wait until the deadline to make their renewal application, the bulk of the renewal reviews have only begun. Please do not contact the Department regarding the status of SPEAKING ENGAGEMENTS There are no upcoming speaking engagements for April, 2008. HOLIDAY CLOSING The Department will be closed on Monday, April 28, for Confederate Memorial Day. Page 3 March 2008 Administrative Actions CEASE AND DESIST ORDERS--ISSUED American Mortgage Express Corp., Mount Laurel, NJ (license no. 13545) Cease and Desist Order issued February 21, 2008 became final on March 22, 2008. Apex Financial & Investments, Inc., Duluth, GA (license no. 21089) Cease and Desist Order issued February 12, 2008 became final on March 13, 2008. Apollo Mortgage Group, LLC, Birmingham, MI (license no. 21668) Cease and Desist Order issued February 22, 2008 became final on March 24, 2008. Brookwood Mortgage Funding Corp., Atlanta, GA (license no. 6526) Cease and Desist Order issued February 28, 2008 became final on March 31, 2008. Capital Services Group, Inc., Roswell, GA (license no. 18084) Cease and Desist Order issued February 15, 2008 became final on March 16, 2008. First American Realty Capital Corp., Los Angeles, CA (license no. 15179) Cease and Desist Order issued February 4, 2008 became final on March 5, 2008. Key Financial Investment Company, Chicago, IL (license no. 22261) Cease and Desist Order issued February 27, 2008 became final on March 28, 2008. Kim, Wayne A., Lake Elsinore, CA Cease and Desist Order issued February 19, 2008 became final on March 11, 2008. Lenox Financial Mortgage, LLC, Atlanta, GA (license no. 19100) Cease and Desist Order issued February 19, 2008 became final on March 11, 2008. Melvin, Kawana, Atlanta, GA Cease and Desist Order issued February 26, 2008 became final on March 28, 2008. Riverbank Mortgage Corporation, Roswell, GA (license no. 16276) Cease and Desist Order issued February 27, 2008 became final on March 28, 2008. SouthStar Mortgage and Financial Services, Inc., Columbus, GA (license no. 20112) Cease and Desist Order issued February 12, 2008 became final on March 13, 2008. Transland Financial Services, Inc., Maitland, FL (license no. 11888) Cease and Desist Order issued February 11, 2008 became final on March 12, 2008. Trinity Mortgage Capital, Inc. (TN), Knoxville, TN (license no. 20413) Cease and Desist Order issued February 25, 2008 became final on March 26, 2008. March 2008 Administrative Actions CEASE AND DESIST ORDERS--LIFTED Page 4 Best Interest Rate Mortgage Company, LLC, Westmont, NJ (license no. 20436) Cease and Desist Order issued January 8, 2008 was lifted on March 28, 2008. SI Mortgage Company dba sistarmortgage company, Shelby Township, MI (license no. 22625) Cease and Desist Order issued January 8, 2008 was lifted on March 7, 2008. FINAL CONSENT ORDERS ISSUED Ingram, Tangalia, Morrow, GA Consent Order issued on March 6, 2008 became final on March 6, 2008. SUPERIOR COURT INJUCTIONS ISSUED 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 5 Licensees fined for Advertising Violations 1 Licensee for Prohibited Acts 3 Licensee fined for Loan Files Not Properly Maintained 1 Licensee fined for Doing Business w/ Unlicensed Entity 1 Licensee fined for Acq of 10% of Lic. w/o Prior Approval 1 Licensee fined for Employment of a Felon 2 Licensee fined for Background Check Violation 3 Licensees fined for Books & Records 1 Licensee fined for Change in Mgmt w/o Approval 1 License fined for Hiring 1099 Employees 1 Licensee fined for Unapproved Branch Manager 225 Licensees fined for $6.50 Fees Not Paid Page 5 March 2008 LICENSEES/REGISTRANTS REVOKED, EXPIRED, SURRENDERED, WITHDRAWN OR DENIED IN MARCH 2008 ID# 6526 7502 11788 11888 12179 13545 14066 14414 15179 15383 16275 16276 16423 16673 17381 18084 18585 19280 19811 20112 20179 20202 20413 20510 20651 20888 20926 20971 21014 21089 21233 21668 21904 22066 22175 22261 NAME BROOKWOOD MTG FUNDING COR BEAZER MTG CORP BROOKSAMER MTG CORP TRANSLAND FINL SVCS INC HEARTLAND HM FIN INC AMER MTG EXPRESS CORP QUALITY PLUS MTG INC CREDIT-BASED ASSET SECUR FIRST AMERICAN REALTY CAP CENTURY HM MTG CORP WINDWARD MTG GA LLC RIVERBANK MTG CORP DREAM HOUSE FINL CORP NORTHSIDE LENDING INC ARI FINL SVCS LLC CAP SVCS GRP INC BEACON HILL FINL LLC FREDERICK MTG GRP LLC RESOURCE MTG LTD SOUTHSTAR MTG & FINL SVCS MCCARTHY, JERRY F ACCELERATED MTG SVCS LLC TRINITY MTG CAP INC PACWEST FUNDING SMART MONEY MTG INC VERIDIAN FINL INC CENTER FINL GRP INC CENTURY FINL SVCS LLC WEBTREELOANCOM INC APEX FINL & INV INC EPI MTG CTR INC APOLLO MTG GRP LLC ATLANTIC FINL FUNDING INC 1ST LIBERTY INC OPTIMA MTG CORP KEY FINL INV CO CODE BD LD LD LD LD LD BD LD LD BD BD BD BD BD BD BD BD BD LD BD BD BD BD LD LD LD BD BD LD BD LD BD BD LD LD BD REVOKED EXPIRED 03-31-2008 SURRENDERED 03-12-2008 03-22-2008 03-05-2008 03-28-2008 03-16-2008 03-13-2008 03-26-2008 03-11-2008 03-13-2008 03-24-2008 03-28-2008 WITHDRAWN DENIED 03-13-2008 03-24-2008 03-15-2008 03-24-2008 03-28-2008 03-14-2008 03-07-2008 03-14-2008 03-31-2008 03-07-2008 03-14-2008 03-18-2008 03-12-2008 03-07-2008 03-31-2008 03-26-2008 03-03-2008 03-31-2008 03-17-2008 03-17-2008 03-03-2008 03-03-2008 03-07-2008 03-18-2008 TOTAL: 36 March 2008 Page 6 LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN MARCH 2008 ID# COMPANY NAME 23155 Strategic Recovery Group, LLC CITY Plano MB ORIGINAL ST CD APPROVAL TX L 03-07-2008 RENEWAL 03-07-2008 REINSTATED 23246 FCI Lender Services, Inc. Anaheim Hills CA L 03-07-2008 03-07-2008 23188 Prodovis Mortgage, LLC Arlington TX L 03-14-2008 03-14-2008 23231 BIC Investments, LLC Portland OR L 03-14-2008 04-02-2008 20929 America's Lending Leader, LLC + Powder Springs GA B 12-16-2005 04-02-2008 23132 First Community Mortgage Group, Inc. Blue Ridge GA B 03-07-2008 04-02-2008 23158 Crysler Financial, LLC Ocala FL B 03-07-2008 04-02-2008 23168 Vertex Financial Group, Inc. 23197 Arch Bay Holdings, LLC Highlands Ranch Irvine CO B CA L 03-07-2008 03-07-2008 04-02-2008 04-02-2008 23203 Roy Douglas Maynard Savannah GA B 03-07-2008 04-02-2008 23218 VM Lending, LLC Alpharetta GA B 03-07-2008 04-02-2008 23204 H & H Funding Group, LLC Atlanta GA B 03-14-2008 04-02-2008 22625 SI Mortgage Company Shelby Town- MI B ship 20436 Best Interest Rate Mortgage Company, Westmont NJ L LLC TOTAL: 14 07-27-2007 07-01-2005 04-02-2008 03-28-2008 03-07-2008 03-28-2008 DBF's Customer Service Stars for the Month of March 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 or groups for going above and beyond in serving our customers: Supervisory Examiner Diane Hester (NDFI Division): The Department received comments from a customer stating: "I worked with Diane Hester and this lady was impressive!! I had to get her some information and she went above and beyond to help me with getting started. She gave me some great information and some pointers that I know will help me succeed!" The Department is the state agency that regulates and examines banks, credit unions, and trust companies chartered by the State. The Department also has regulatory and/or licensing authority over mortgage brokers, lenders, and processors, money service businesses, international banking organizations, and bank holding companies conducting business in Georgia. Our MISSION is to promote safe, sound, competitive financial services in Georgia through innovative, responsive regulation and supervision. Our VISION is to be the best financial services industry regulator in the country Progressive. Proactive. Service-Oriented. CONGRATULATIONS AND GREAT JOB TO THIS MONTH'S CUSTOMER SERVICE STARS!! Page 7 March 2008 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.