Monthly mortgage summary, Aug. 2008

NDFI

MONTHLY MORTGAGE SUMMARY

August 2008
Georgia Department of Banking & Finance-- Non Depository Financial Institutions Division MonthlyMSounmthmlayrSyuomfmMaorrytgoaf gMeoArtcgtaivgietiAecstifvoirtitehsefoPrertihoed PEenrdioindgEAnudginugstA2p0r0il82007

Inside this issue:

Page 1

NEWS

NEWS ITEMS

NATIONAL NEWS

NATIONAL NEWS

S.A.F.E.

1

GEORGIA NEWS

S.A.F.E.

GEORGIA NEWS

Consumer Complaints

1

OTHER NEWS

Fraud Prevention 2

Reg Z Amendments 2

ADMINISTRATIVE ITEMS

Administrative Actions

4-6

Licenses Approved & Reinstated

7

Licenses Revoked, Expired...Denied

8-9

Fines

6

Customer Service Stars

10

(The President signed into law Title V of the Housing and Economic Recovery Act of 2008, the ``Secure and Fair Enforcement for Mortgage Licensing Act of 2008'' or ``S.A.F.E. Mortgage Licensing Act of 2008'' on July
30, 2008.)
As noted in last month's Mortgage Summary, the Department will be participating in the Nationwide Mortgage Licensing System & Registry (NMLSR) as contemplated by the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ("SAFE") (H.R. 3221). Title V requires that each state enact minimum standards regarding the supervision of mortgage originators and adopt the NMLSR, or the U.S. Department of Housing and Urban Development will assume the responsibility for the regulation of mortgage originators (as defined in SAFE) in that state.
The NMLSR is a multi-state licensing system that allows your business to apply for and manage its licenses with the Department and other participating states through a secure website. The NMLSR was developed by and for state regulators to streamline the licensing process for regulators and the industry allowing all mortgage businesses and originators to be licensed in Georgia and other participating states with a minimum amount of paperwork. Statute changes in the past legislative session provided authority for the Department to participate in the system.

INDIVIDUAL CONSUMER COMPLAINTS

AGAINST DEPARTMENT REGULATED ENTITIES

Due to state budget issues which have resulted in staff cutbacks, the Department of Banking and Finance no longer handles individual consumer complaints against financial institutions chartered by the State of Georgia, or other entities licensed or regulated by the Department.

As we make this transition, the Depart-

ment wants to make all state-chartered finan-

cial institutions and licensees/registrants aware

that more complaints may be received directly

from consumers.

The Depart-

ment's expectation is that all entities will make

good faith attempts to resolve all issues or

complaints directly with Georgia consumers

within a reasonable period of time. This staff-

ing change does not affect the power of the

Department to demand a response to consumer

complaints should the Department determine

that such a demand is appropriate.

Useful Links MORTGAGE FORMS: DBF.GEORGIA.GOV/
DBFMTGFORMS

The Department will be providing additional information regarding implementation of SAFE in Georgia, and you are encouraged to refer to future Department publications and our website for updates.

UPDATING LICENSE INFORMATION
DBF.GEORGIA.GOV/
DBFMTGFORMS
MORTGAGE SUMMARY DBF.GEORGIA.GOV/
DBFMTGSUMMARY

SPEAKING ENGAGEMENTS There are no upcoming speaking engagements for
September, 2008.
HOLIDAY CLOSING The Department will be closed on Monday,
October 13, for Columbus Day.

ADOPTED RULES
The Department adopted Final Rules August 4, 2008. These Rules became effective August 25, 2008. The revised GRMA Mortgage Rules handbook is available for download at:
http://dbf.georgia.gov/dbfmtgforms

Page 2

August 2008

Other News

Fraud Prevention

REG Z AMENDMENTS

This publication presents the final installment of excerpts from Freddie Mac's publication "Discover Gold Through Quality--Fraud Prevention Best Practices", an educational booklet to provide members of the industry with assistance in avoiding and preventing mortgage fraud. The booklet provides guidelines for licensees and their employees to assist in the prevention, detection and resolution of mortgage fraud in business operations. The entire publication is available from Freddie Mac's website at: http://www.freddiemac.com/dgtq/pdf/fr.pdf
SCHEMES
There are certainly more types of fraud than described in this section, and there will be new types of schemes that emerge. Some common fraud schemes include:
Builder Bailout Scheme--Builder bailouts occur when the builder or developer is motivated to move property quickly when the market has slowed and sales have begun to lag. The builder and other industry professionals may engage in questionable practices in order to move the remaining inventory of properties.
Property Flips--Property flips occur when ownership of one property changes several times in a brief period of time. Property flipping becomes illegal and a fraud for profit scheme when a home is purchased and resold within a short time frame at an artificially inflated value. The flip typically involves a fraudulent appraisal, which may indicate that renovations were made to the home, when, in fact, there were none, or the renovations consisted only of minor cosmetic improvements. Flips may also be used to conceal the identity of the true buyer or seller of the property.
Foreclosure Rescue Scheme--A foreclosure rescue scheme is a type of fraud that takes advantage of homeowners who have fallen behind on their mortgage payments. The fraud perpetrator or "rescuer" approaches the homeowner with a promise to pay off the delinquent mortgage and help the homeowner stay in the property. At closing, the homeowner surrenders title (usually unaware they are doing so) to an investment buyer, who may have been recruited. The proceeds are used to pay off the defaulted loan, but the remaining equity is paid out to the "rescuer".
Investment Property Fraud--Investment property fraud often involves an elaborate scheme to profit the fraudster using legitimate investment buyers or straw buyers. Affinity groups may be targeted.
Purchases Disguised as Refinances--These schemes are often used to disguise the borrowers equity contribution in the transaction, inflate the property value, close the loan as a refinance and provide cashout
("Fraud" Continued on page 3)

A final rule was approved by the Federal Reserve Board on July 14, 2008 for home mortgage loans to better protect consumers and facilitate responsible lending. The rule prohibits unfair, abusive or deceptive home mortgage lending practices and restricts certain other mortgage practices. The final rule also establishes advertising standards and requires certain mortgage disclosures to be given to consumers earlier in the transaction. The new rules will apply to all mortgage lenders, not just those supervised and examined by the Federal Reserve.
The final rule adds four key protections for a newly defined category of "higher-priced mortgage loans" secured by a consumer's principal dwelling. For loans in this category, these protections will:
Prohibit a lender from making a loan without regard to borrowers' ability to repay the loan from income and assets other than the home's value. A lender complies, in part, by assessing repayment ability based on the highest scheduled payment in the first seven years of the loan. To show that a lender violated this prohibition, a borrower does not need to demonstrate that it is part of a "pattern or practice."
Require creditors to verify the income and assets they rely upon to determine repayment ability.
Ban any prepayment penalty if the payment can change in the initial four years. For other higher-priced loans, a prepayment penalty period cannot last for more than two years. This rule is substantially more restrictive than originally proposed.
Require creditors to establish escrow accounts for property taxes and homeowner's insurance for all first-lien mortgage loans.
The rule's definition of "higher-priced mortgage loans" will capture virtually all loans in the subprime market, but generally exclude loans in the prime market. To provide an index, the Federal Reserve Board will publish the "average prime offer rate," based on a survey currently published by Freddie Mac. A loan is higher-priced if it is a first-lien mortgage and has an annual percentage rate that is 1.5 percentage points or more above this index, or 3.5 percentage points if it is a subordinate-lien mortgage.
( "Reg Z"--Continued on page 3)

August 2008

Page 3

Other News--Continued

("Fraud"--Continued from page 2)
to the fraudster. Some of the following red flags may occur when a purchase is disguised as a refinance.
Cash-out Purchases--A cash-out purchase scheme normally involves one closing and occurs when properties have been on the market for an extended length of time and a desperate seller is unable to find a qualified buyer. The seller may be offered a way out of the situation with an offer that exceeds the selling price of the property and an agreement to make a refund to the buyer after closing. The property appraisal is inflated and a straw buyer is used to purchase the property. The loan often goes into early payment default and ends in a foreclosure. The list of red-flags your staff should look for in each of these schemes is presented in the publication.
List of Investigative Resources
You should provide your staff with the resources available to investigate suspected misrepresentation and/or fraud in the mortgage file. These sources may include:
Freddie Mac Fraud Hotline: 1-800 4 FRAUD 8 Discover Gold Website www.FreddieMac.com/dgtq Freddie Mac Fraud Prevention www.FreddieMac.com/ singlefamily/fraud_prevention.html Freddie Mac Exclusionary List (Seller/Servicers only) Internet search and access records/information. Freddie Mac does not endorse any particular vendor or website, but a list of websites that may be helpful include:
- www.accurint.com (Accurint records database) - www.lexisnexis.com (LexisNexis records database) - www.mari-inc.com (Mortgage Asset Research Institute) - www.searchsystems.net (public information) - www.searchbug.net (people and company finder) - www.salary.com (salary benchmarks) - www.mortgagefraudblog.com (recent fraud cases) - www.mbafightsfraud.mortgagebankers.org/ (Mortgage Fraud
Against Lenders Resource Center) - www.mortgagefraud.squarespace.com (recent fraud cases) - www.fraud.org (National Consumer League's Fraud Center) - www.fraudproblem.com (Real estate and mortgage fraud
information and assistance center) - http://www.asc.gov/ (Appraisal Subcommittee) - www.nationalmortgagenews.com/fraud/newsletter (National
Mortgage News Fraud and Compliance Report) - www.consumer.gov/idtheft (Federal Trade Commission's
Identify Theft site) The publication also provides details that underwrites, processors and QC personnel should look for
(Reprinted with permission of the Federal Home Loan Mortgage Corporation)

("Reg Z" Continued from page 2)
In addition to the rules governing higher-priced loans, the rules adopt the following protections for loans secured by a consumer's principal dwelling, regardless of whether the loan is higher-priced:
Creditors and mortgage brokers are prohibited from coercing a real estate appraiser to misstate a home's value.
Companies that service mortgage loans are prohibited from engaging in certain practices, such as pyramiding late fees. In addition, servicers are required to credit consumers' loan payments as of the date of receipt and provide a payoff statement within a reasonable time of request.
Creditors must provide a good faith estimate of the loan costs, including a schedule of payments, within three days after a consumer applies for any mortgage loan secured by a consumer's principal dwelling, such as a home improvement loan or a loan to refinance an existing loan. Currently, early cost estimates are only required for home-purchase loans. Consumers cannot be charged any fee until after they receive the early disclosures, except a reasonable fee for obtaining the consumer's credit history.
ADVERTISING
For all mortgages, the rule also sets additional advertising standards. Advertising rules now require additional information about rates, monthly payments, and other loan features. The final rule bans seven deceptive or misleading advertising practices, including representing that a rate or payment is "fixed" when it can change. See 12 CFR 226, Section XI. Advertising.
State Law: The Department continues to receive complaints about false and misleading advertising from licensees. The Georgia Residential Mortgage Act ("Act") is very specific about advertising requirements, as noted in Section 7-1-1016 and Department regulations. When considering the content of your advertising, It is important to remember that TV, internet, and radio ads, as well as advertisements in languages other than English, must satisfy advertising requirements in the Act.
EFFECTIVE DATE
The new rules take effect on October 1, 2009. The single exception is the escrow requirement, for "higher-priced mortgage loans", which will be phased in during 2010 to allow lenders to establish new systems as needed.
The press release and related links can be found at http:// www.federalreserve.gov/newsevents/press/bcreg/20080714a.htm

Page 4
Administrative Actions

August 2008

CEASE AND DESIST ORDERS--THAT BECAME FINAL
A-Z Financial, LLC, Alpharetta, GA (license no. 19477) Cease and Desist Order issued July 22, 2008 became final on August 21, 2008.
AAA Direct Mortgage, Inc., Atlanta, GA (license no. 18784) Cease and Desist Order issued July 21, 2008 became final on August 20, 2008.
AAA Worldwide Financial Co., Addison, TX (license no. 21066) Cease and Desist Order issued July 10, 2008 became final on August 12, 2008.
All American Mortgage Brokers, Inc., Woodstock, GA (license no. 18516) Cease and Desist Order issued July 29, 2008 became final on August 28, 2008.
American Castle Development and Sales, Inc. dba Taylor Made Mortgage, Douglas, GA (license no. 19627) Cease and Desist Order issued July 22, 2008 became final on August 21, 2008.
Atlantic States Mortgage Company, Inc., McDonough, GA (license 17317) Cease and Desist Order issued July 7, 2008 became August 6, 2008.
Bornhorn, Sandra Ddba Great South Mortgage, Jefferson, GA (license no. 14205) Cease and Desist Order issued July 28, 2008 became final on August 27, 2008.
Cameo Mortgage Group, LLC, Orlando, FL Cease and Desist Order issued July 29, 2008 became final on August 29, 2008.
Classic City Financial, Inc., Athens, GA (license no. 20333) Cease and Desist Order issued July 30, 2008 became final on August 31, 2008.
Clear Choice Mortgage, LLC, Lawrenceville, GA (license no. 22727) Cease and Desist Order issued July 28, 2008 became final on August 27, 2008.
Ferguson, Barrington, Marietta, GA Cease and Desist Order issued July 30, 2008 became final on August 30, 2008.
First Capital Mortgage of Central Florida, Inc. dba First Capital Mortgage of Georgia, Longwood, FL (license no. 18467) Cease and Desist Order issued July 15, 2008 became final on August 14, 2008.
Floyd-Brown, Jennifer A., dba Action First Mortgage Company, Albany, GA (license 12442) Cease and Desist Order issued July 30, 2008 became final on August 31, 2008.
Intergroup, Inc., Canton, GA (license 20964) Cease and Desist Order issued July 29, 2008 became final on August 28, 2008.
Lake Hartwell Mortgage Company, Inc. dba Mortgage Company (The), Hartwell, GA (license no. 15639) Cease and Desist Order issued July 15, 2008 became final on August 14, 2008.
Lenox Mortgage, Inc., Miramar Beach, FL (license no. 6217) Cease and Desist Order issued July 29, 2008 became final on August 28, 2008.

Page 5
Administrative Actions

August 2008

CEASE AND DESIST ORDERS--THAT BECAME FINAL (Cont.)

Main Line Mortgage of South Florida, Inc., Fort Lauderdale, FL (license no. 16256) Cease and Desist Order issued July 22, 2008 became final on August 21, 2008.
Meacham, Nicole, Ovegaard, AZ Cease and Desist Order issued July 29, 2008 became final on August 19, 2008.
Metrotech Mortgages, Inc., Palm Coast, FL (license no. 22717) Cease and Desist Order issued July 15, 2008 became final on August 14, 2008.
MH&R Financial Services, Inc. dba Mortgage Planning Group, Pittsburgh, PA (license no. 21445) Cease and Desist Order issued July 28, 2008 became final on August 28, 2008.
The Mortgage Experts of South Florida, Inc., Miami Gardens, FL (license no. 21704) Cease and Desist Order issued July 15, 2008 became final on August 14, 2008.
The Mortgage Place, Inc., Cumming, GA (license no. 17224) Cease and Desist Order issued July 7, 2008 became final on August 6, 2008.
Pacific Wholesale Mortgage, Inc., Pasadena, CA (license no. 21799) Cease and Desist Order issued July 15, 2008 became final on August 14, 2008.
Promenade Mortgage Lending, LLC, Villa Rica, GA Cease and Desist Order issued July 7, 2008 became final on August 7, 2008.
Roundtree, Ashley Gerard, Augusta, GA Cease and Desist Order issued July 29, 2008 became final on August 29, 2008.
Saltmarshall, Yoland Beedles, Villa Rica, GA Cease and Desist Order issued July 7, 2008 became final on August 7, 2008.
Streamline Holding, LLC, Naples, FL (license no. 15031) Cease and Desist Order issued July 22, 2008 became final on August 21, 2008.
Summit Home Mortgage, Inc., Plymouth, MN (license no. 17705) Cease and Desist Order issued July 25, 2008 became final on August 26, 2008.
Synergy Mortgage Solutions, Inc., Atlanta, GA (license no. 19733), Cease and Desist Order issued July 22, 2008 became final on August 21, 2008.
Total Mortgage Processing, Inc., Stone Mountain, GA (license no. 17999), Cease and Desist Order issued July 29, 2008 became final on August 28, 2008.
Trinity Funding Group, LLC, Fayetteville, GA (license no. 18739) Cease and Desist Order issued July 10, 2008 became final on August 9, 2008.
The Universal Mortgage Group, LLC, Snellville, GA (license 22734) Cease and Desist Order issued July 21, 2008 became final on August 20, 2008.

August 2008
Administrative Actions

Page 6

CEASE AND DESIST ORDERS--LIFTED

UBS Financial Services, Inc., Weehawken, NJ (license no. 18092) Cease and Desist Order issued June 23, 2008 was rescinded on August 1, 2008.

FINAL CONSENT ORDERS-- ISSUED
RTL Financial, Inc., Bellevue, WA (license no. 21280-- Consent Order issued on August 20, 2008 became final on August 20 , 2008.

SUPERIOR COURT INJUCTIONS--ISSUED
None

Page 7
Administrative Actions

August 2008

LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN AUGUST 2008

ID#

COMPANY NAME

23526 23489
23497 23515
23517
23538 20105 23527 23537
7258 23490 23543 23552 23553 20669 23473 23528 23539 23542 23551

Christopher P. Hernandez Management Consultants Associates, Inc. Blackwood & Co. LLC Avrus Financial & Mortgage Services, Inc. Rocky Mountain Mortgage Specialists, Inc. Oxford Lending Group, LLC Capital Lending Group, Inc. + Palmetto Mortgage Processing, Inc. Georgia Home Lending, LLC Yvonne K. Yung Kwan Chau * Regents Financial, LLC Kimberly Ann Tomica The CFO Advisory Group Inc. Chambers Financial Hargrow & Associates, Inc. + Harvard Home Mortgage, Inc. In Ja Cho GulfStream Capital Resources, LLC LendXFinancial, LLC United Mortgage Express, Inc.

18092 23155 18709

UBS Financial Services, Inc. Strategic Recovery Group, LLC Bergin Financial, Inc.

CITY

ST MB CD

Fayetteville

GA

B

Sandy Springs GA

B

McDonough Boca Raton

GA

B

FL

B

Centennial

CO

L

Columbus

OH

L

Suwanee

GA

B

Columbia

SC

B

Atlanta

GA

B

Alpharetta

GA

L

Troy

MI

B

Cartersville

GA

B

Covington

GA

L

Atlanta

GA

B

Ann Arbor

MI

B

Annapolis

MD

L

Duluth

GA

B

Dahlonega

GA

B

Atlanta

GA

L

North Bruns-

NJ

B

wick

Weehawken

NJ

B

Plano

TX

L

Southfield

MI

L

ORIGINAL
08-01-2008 08-08-2008
08-08-2008 08-08-2008
08-08-2008
08-08-2008 03-18-2005 08-15-2008 08-15-2008 07-21-1995 08-22-2008 08-22-2008 08-22-2008 08-22-2008 08-19-2005 08-29-2008 08-29-2008 08-29-2008 08-29-2008 08-29-2008
01-31-2003 03-07-2008 10-17-2003

RENEWAL
08-01-2008 08-08-2008
08-08-2008 08-08-2008
08-08-2008
08-08-2008 08-15-2008 08-15-2008 08-15-2008 08-22-2008 08-22-2008 08-22-2008 08-22-2008 08-22-2008 08-29-2008 08-29-2008 08-29-2008 08-29-2008 08-29-2008 08-29-2008
08-01-2008 08-08-2008 08-22-2008

REINSTATED
08-01-2008 08-08-2008 08-22-2008

TOTAL: 23

R E M A I N I N G S T A T E H O L I D A Y S:

Holiday:

Observed:

Columbus Day

Monday, October 13

Veterans' Day

Tuesday, November 11

Thanksgiving Day

Thursday, November 27

Christmas Day

Thursday, December 25

Robert E. Lee's Birthday (alternate observance) Friday, November 28

August 2008

Page 8

LICENSEES/REGISTRANTS REVOKED, EXPIRED, SURRENDERED, WITHDRAWN OR DENIED

IN AUGUST 2008

ID#

COMPANY NAME

CODE

REVOKED

EXPIRED

SUSPENDED

WITHDRAWN

DENIED

5647 STERLING MTG CORP

BD

08-21-2008

6217 LENOX MTG INC

BD

08-28-2008

6568 CITIFINANCIAL SVCS INC

RD

08-20-2008

12442 FLOYD-BROWN, JENNIFER ANN

BD

08-31-2008

13737 BUCKHEAD MTG LLC

BD

08-29-2008

14205 BORNHORN, SANDRA D

BD

08-27-2008

14823 RESERVE FUNDING MTG CORP

BD

08-25-2008

14893 EXPRESS ENTERPRISES INC

BD

08-15-2008

15031 STREAMLINE HOLDING LLC

LD

08-21-2008

15639 LAKE HARTWELL MTG CO INC

BD

08-14-2008

16243 AMER HOMETOWN MTG INC

BD

08-25-2008

16256 MAIN LINE MTG S FL INC

BD

08-21-2008

16808 1ST CAP LENDING INC

BD

08-07-2008

17224 MTG PLACE INC

BD

08-06-2008

17317 ATLANTIC STATES MTG CO

BD

08-06-2008

17570 DOVE FIN & INV GRP INC

BD

08-28-2008

17705 SUMMIT HM MTG INC

LD

08-26-2008

17999 TOTAL MTG PROCESSING INC

BD

08-28-2008

18467 1ST CAP MTG CENTRAL FL

BD

08-14-2008

18516 ALL AMER MTG BROKERS INC

BD

08-28-2008

18739 TRINITY FUNDING GRP LLC

BD

08-09-2008

18784 AAA DIRECT MTG INC

BD

08-20-2008

18929 NLC OF GEORGIA, INC.

BD

08-08-2008

19142 1ST SOLUTIONS MTG INC

BD

08-21-2008

19157 APPROVED MTG SVCS LLC

BD

08-29-2008

19477 A-Z FINL LLC

BD

08-21-2008

19627 AMER CASTLE DEVELOPMENT

BD

08-21-2008

19733 SYNERGY MTG SOLUTIONS LLC

BD

08-21-2008

19855 A ANDERSON SCOTT MTG GRP

LD

08-07-2008

19988 NUSTAR MTG RESOURCES, LLC

LD

08-19-2008

20013 PACIFIC W LENDING INC

LD

08-29-2008

20333 CLASSIC CITY FINL INC

BD

08-31-2008

20434 INNERGY LENDING LLC

BD

08-06-2008

20587 A&R MTG SVCS LTD

BD

08-11-2008

20883 CENTURY PACIFIC MTG CORP

LD

08-29-2008

20964 INTERGROUP INC

LD

08-26-2008

21066 AAA WORLDWIDE FINL CO

LD

08-12-2008

21201 IIM MTG SVCS LLC

BD

08-29-2008

21241 FBS CAP INC

BD

08-14-2008

21319 KEY FINL CORP

LD

08-06-2008

21445 MH&R FINL SVCS INC

BD

08-28-2008

21545 AUBURN MTG INC

BD

08-11-2008

21686 UNIFIED FINL GRP (INC)

LD

08-14-2008

Page 9

August 2008

LICENSEES/REGISTRANTS REVOKED, EXPIRED, SURRENDERED, WITHDRAWN OR DENIED IN AUGUST 2008

ID#

COMPANY NAME

CODE

REVOKED

EXPIRED

SUSPENDED

WITHDRAWN

DENIED

21704 MTG EXPERTS S FL INC

LD

21799 PACIFIC WHOLESALE MTG INC

LD

21960 SOURCE 1 LENDING, LLC

BD

22098 EXPRESS MTG SVCS INC (FL)

BD

22113 TLP FUNDING CORP

LD

22176 SAN DIEGO CORNERSTONE MTG

LD

22314 RMI MTG LICENSING LLC

LD

22487 BRITE HOUSE FINL SOLUTION

BD

22497 PROVENANCE MTG CORP

BD

22555 HANOVER CAP MTG HOLDINGS

LD

22717 METROTECH MTGS INC

BD

22727 CLEAR CHOICE MTG LLC

BD

22734 UNIVERSAL MTG GRP LLC

BD

22809 CONSUMER SOLUTIONS LLC DE

LD

22844 ATL MTG BROKER SVCS INC

BD

23167 MADISON MTG ASSOC INC

BD

TOTAL: 59

08-14-2008 08-14-2008
08-14-2008 08-27-2008 08-20-2008 08-05-2008

08-29-2008 08-26-2008 08-12-2008 08-13-2008 08-15-2008 08-04-2008 08-14-2008 08-25-2008
08-08-2008 08-12-2008

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

4 Licensees fined for Advertising Violations

1 Licensee fined for Employment of a Felon

2 Licensees fined for Background Checks Violations

2 Licensees fined for Loans Files not properly maintained

3 Licensees fined for Books & Records

3 Licensees fined for Prohibited Act

2 Licensees fined for Acq. Of 25% ownership w/o approval 1 Licensee fined for doing business w/ unlicensed entity

1 Licensees fined for Employee under C&D or Revocation

August 2008

Page 10

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:
Mortgage Examiner Fernando Ornelas (NDFI--Main Office): The Department received comments from a customer stating: "I wanted to take a moment to compliment you on one of your employees, Fernando Ornelas. I have been tasked with a complex project in which I must contact all the states to garner information. Fernando has by far exceeded the assistance that I have received from any other state to date. I can't thank him enough for his level of professionalism and thought I would let you know as well. Customer service is the key, and he has it in spades! I manage a staff as well, and I know that I enjoy hearing that someone on my team is making a differ- ence."
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 11

August 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.

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