NDFI MONTHLY MORTGAGE SUMMARY May 2009 Georgia Department of Banking & Finance-- Non Depository Financial Institutions Division MonthlMyoSnutmhlmyaSruymomf aMroyrotfgaMgoertAgcatgieviAticetsivfiotiretshfeorPethrieodPeErnioddinEgnMdianyg 2A0p0r9il 2007 Inside this issue: Page 1 NEWS STATE & NATIONAL NEWS STATE & NATIONAL Georgia's S.A.F.E 1 License 1 Transition / Renewal Financial 2 Institution - LO Registration Customer Service Stars 3 ADMINISTRATIVE ITEMS Administrative 4Actions 5 Fines 6 Licenses Approved & Reinstated 6 Licenses Revoked, Expired...Denied 7 Contact Information 8 Useful Links MORTGAGE FORMS: DBF.GEORGIA.GOV/ DBFMTGFORMS UPDATING LICENSE INFORMATION DBF.GEORGIA.GOV/ DBFMTGFORMS MORTGAGE SUMMARY DBF.GEORGIA.GOV/ DBFMTGSUMMARY GEORGIA S.A.F.E BILL HIGHLIGHTS The Georgia legislature passed and the Governor signed the bill establishing the Georgia requirements for mortgage loan originator (MLO) licensing under the federal Safe and Fair Enforcement Act (SAFE) passed in 2008. The statute is effective July 1, 2009. In order to offer some guidance concerning the deadlines and requirements, the following information is provided. It should be noted that the implementing regulations concerning these statutory changes to the Georgia Residential Mortgage Act are in development and will be issued for public comment shortly. Please watch this publication for additional information. Overview Education requirements--Twenty hours of pre- licensing education for the MLO's license from an education provider approved by the NMLS&R is required. The statute requires the passing of a system approved test with a minimum passing grade of 75%. Retest parameters are noted. NMLS&R is working with its education consultant to develop the course content, test requirements and validation, and delivery/ recordation methods for course information and test scores. It is anticipated that the course work and test will be available in Georgia in late October, 2009. submit his/her completed MLO license application to the Department beginning January 1, 2010 through the NMLS&R. MLO licenses will be worked in the order submitted. All MLOs requiring licensing will need to be licensed by March 31, 2010. DEADLINES - As noted, the dates contained herein are anticipated education, background authorization and licensing deadline dates but are SUBJECT TO CHANGE. To view information regarding the bill see: http://www.legis.state.ga.us/ legis/2009_10/sum/hb312.htm LICENSE TRANSITIONS/RENEWALS T he interim FY2010 renewal application period is almost over. Current FY2009 licenses will expire on June 30, 2009. Any licensee who has not submitted a renewal application through the NMLS&R by June 30 will have their license expire, and a reinstatement application must be submitted. Licensees who have successfully submitted their renewal and been approved should expect to receive their interim FY2010 license by the first week of July, 2009. Licensing Deadline--Once the education and testing are available and in place, it is anticipated that the applicant will be able to ("License Renewals" --Continued on page 2) Page 2 May 2009 State & National News FINANCIAL INSTITUTION LOAN ORIGINATOR REGISTRATION (Note the following--The SAFE Act, requiring the licensing of mortgage loan originators, provides an exemption from licensing for employees of financial institutions which are regulated by certain financial institution regulatory agencies. The exemption is from LICENSING, but still requires these employees to be REGISTERED through the NMLS&R. ) The federal financial institution regulatory agencies (Agencies) are together issuing for public comment proposed rules requiring mortgage loan originators who are employees of Agency-regulated institutions to meet the registration requirements of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). The proposal implements the requirement of the SAFE Act by providing that employees of regulated institutions who engage in the business of a mortgage loan originator are required to register with the Nationwide Mortgage Licensing System and Registry (NMLS&R) and to obtain a unique identifier. The proposed rule, in addition to implementing the SAFE Act requirements, also directs regulated institutions to have written policies and procedures in place to ensure that their employees who perform mortgage loan originations comply with the registration and other SAFE Act requirements. The Federal Register notice and proposed rule can be found on the Federal Reserve's website at: http:// www.federalreserve.gov/newsevents/press/bcreg/ bcreg20090601a1.pdf. The proposal will soon be published in the Federal Register and the comment period will end 30 days thereafter. ("License Renewals" - Continued from page 1) License renewals for the new CALENDAR year licensing period will begin November 1, 2009, and those applications must be completed by December 31, 2010. As noted in a previous edition of the Monthly Summary, and applying to broker/processor licensees only, continuing education (CE) credits for the Calendar Year 2010 license renewal period in November 2009 will not be required. For that one license renewal period only, the CE requirement will be waived. The requirement for the continuing education credits will be in place again with the renewal period beginning in November 2010 which is for the Calendar year 2011 license. Generally, qualifying credits earned from April 1, 2009 to October 31, 2010 may be used to meet the broker/ processor continuing education requirements for the 2011 license. However, if any licensee made up credits from April 1 to June 30 of 2009 to qualify for the FY 2010 license (this current license renewal), those credits may not be used again. HOLIDAY CLOSING The Department will be closed on Friday, July 3 for Independence Day. May 2009May 2009 Page 3 State & National News Items DBF's Customer Service Stars 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: Assistant Review Examiner Deborah Long (NDFI-Mortgage): The Department received comments from a customer regarding Deborah stating: "I just wanted to take this opportunity to say what a great experience I had working with Deborah Long. Not only did she take the time to email me, but she called me as well. She was very courteous and helpful. Not only did she make the renewal process enjoyable, but was very helpful in the transition to the NMLS as well. Thank you Deborah for all your help. It was a pleasure working with you." And... Supervisory Examiner Diane Hester and NDFI Staff (NDFI-Mortgage): The Department received comments from a customer regarding Diane and the NDFI Division staff stating: "This helps immensely. I would just like to say that I deal with regulators from all fifty states, and I can honestly say that the state of Georgia is the most responsive and easy to work with. I appreciate everyone's hard work at the state of GA. Please feel free to pass on my appreciation to anyone in your office. You and your colleagues are to be commended." 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 STAR!! SPEAKING ENGAGEMENTS--NDFI Deputy Commissioner for Non-Depository Financial Institutions Rod Carnes will be speaking at the Annual Meeting of the Georgia Manufactured Housing Association to be held on June 18th at the Central Georgia Convention Complex in Forsyth, GA. Page 4 May 2009 Administrative Actions CEASE AND DESIST ORDERS WHICH BECAME FINAL First Federated Mortgage Corp., Roswell, GA (license no. 6731) Cease and Desist Order issued April 14, 2009 became final on May 14, 2009. Advanced Home Loans Corp., Marco Island, FL (license no. 21697) Cease and Desist Order issued April 10, 2009 became final on May 10, 2009. Chattanooga Mortgage, Inc., Chattanooga, TN (license no. 21428) Cease and Desist Order issued April 28, 2009 became final on May 28, 2009. DL Processing Services, Houston, TX Cease and Desist Order issued April 9, 2009 became final on May 11, 2009. Fairway Capital Mortgage Corp., Baltimore, MD (license no. 21578) Cease and Desist Order issued April 23, 2009 became final on May 25, 2009. Free, Jackie, Deerfield Beach, FL Cease and Desist Order issued April 2, 2009 became final on May 4, 2009. Kondaur Capital Corporation, Orange, CA Cease and Desist Order issued April 9, 2009 became final on May 10, 2009. Lalli, Lisa, Edmond, OK Cease and Desist Order issued April 9, 2009 became final on May 27, 2009. Mortgage Loan Processing Services, Inc., Port Saint Lucie, FL Cease and Desist Order issued April 2, 2009 became final on May 4, 2009. NAD Acquisition 3, LLC Cease and Desist Order issued April 9, 2009 became final on May 10, 2009. National Asset Direct Acquisition, LLC Cease and Desist Order issued April 9, 2009 became final on May 10, 2009. PTF Financial Corp. dba My Mortgage Company, Englewood, CO (license no. 20925) Cease and Desist Order issued April 3, 2009 became final on May 4, 2009. Pierce, Joshua Mitchell, Lawrenceville, GA Cease and Desist Order issued April 9, 2009 became final on May 27, 2009. Pledge, Vernon, Richmond, VA Cease and Desist Order issued May 4, 2009 became final on May 27, 2009. Raymond, Louis & Fitch, d/b/a RLF Housing Counseling Community Service--Cease and Desist Order issued April 28, 2009 became final on May 29, 2009. United Mortgage Associates, Inc., Stockbridge, GA (license no. 12030) Cease and Desist Order issued March 31, 2009 became final on May 1, 2009. Administrative Actions May 2009 Page 5 CEASE AND DESIST ORDERS WHICH BECAME FINAL Continued Utah Financial, Inc. dba Mortgage Integrity, Midvale, UT (license no. 18568) Cease and Desist Order issued April 30, 2009 became final on May 30, 2009. Wellstar Financial, Inc., Norcross, GA (license no. 20190) Cease and Desist Order issued April 16, 2009 became final on May 18, 2009. Wholesale America Mortgage, Inc., Pleasanton, CA (license no. 22601) Cease and Desist Order issued April 3, 2009 became final May 5, 2009. CEASE AND DESIST ORDERS--LIFTED, RESCINED, WITHDRAWN None FINAL CONSENT ORDERS Campos, Alex J., Norcross, GA, Duluth, GA Consent Order issued on May 28, 2009 became final on May 28, 2009. Chung, Sung Doo ("John"), Norcross, GA Consent Order issued on May 5, 2009 became final on May 5, 2009. Intelli Mortgage Services, Inc., Norcross, GA (license no. 16999) Consent Order issued on May 5, 2009 became final on May 5, 2009. One World Mortgage Corporation, Duluth, GA Consent Order issued on May 28, 2009 became final on May 28, 2009. SUPERIOR COURT INJUCTIONS--ISSUED None Page 6 Administrative Actions May 2009 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 6 Licensees fined for Advertising Violations 2 Licensees fined for Background Checks Violation 1 Licensee fined for Books & Records 1 Licensee fined for Unapproved Branch 1 Licensee fined for Unapproved Branch Manager 3 Licensees fined for Continuing Education data filed late 8 Licensees fined for Unapproved Change in Management 5 Licensees fined Acq of 25% ownership w/o approval 2 Licensees fined Employment of a Felon 1 Licensee fined Failure to report violations/discharge 2 Licensees fined for Loan Files not properly maintained 1 Licensees fined for Prohibited Acts ID# 23905 23131 23858 LICENSEES/REGISTRANTS APPROVED OR REINSTATED IN MAY 2009 COMPANY NAME Douglas Arthur Phelps Jr. Jacob Dean Mortgage, Inc. * Adchemy, Inc. CITY Duluth ST MB CD GA B Vienna VA L Redwood City CA B ORIGINAL APPROVAL 05-01-2009 01-25-2008 05-08-2009 RENEWAL 05-01-2009 05-08-2009 05-08-2009 23875 23893 23934 23961 NetMore America, Inc. L. Glynn Lockaby Robert b. Dixon Lifetime Financial Partners, Inc. Walla Walla WA L Atlanta GA B Duluth GA B Bloomingdale IL L 05-08-2009 05-08-2009 05-22-2009 05-22-2009 05-08-2009 05-08-2009 05-22-2009 05-22-2009 23971 Wealthbridge Mortgage Corp. 23870 23976 American Home Mortgage Lending Solutions, Inc. Morgan Stanley Smith Barney LLC 23149 Janet Winifred Thomas TOTAL: 11 Beaverton Irving Purchase Atlanta OR L TX L NY R GA B 05-22-2009 05-29-2009 05-29-2009 02-08-2008 05-22-2009 05-29-2009 05-29-2009 05-22-2009 REINSTATED 05-22-2009 Administrative Actions May 2009 Page 7 LICENSEES/REGISTRANTS REVOKED, EXPIRED, SURRENDERED, WITHDRAWN OR DENIED IN MAY 2009 ID# COMPANY NAME 6285 FINL MTG CTR INC 6731 1ST FEDERATED MORT CORP 12030 UNITED MTG ASSOC INC 15412 C&A MTG 15628 AMER CMTY MTG 16999 INTELLI MTG SVCS INC 18516 ALL AMER MTG BROKERS INC 18755 1ST HOMEOWNERS CORP 19151 MBS MTG CO LLC 19423 SOLUTION ONE MTG INC 19570 FRANKLIN MTG CORP 20190 WELLSTAR FINL INC 20900 CONTENNIAL MTG ADVISORS 20925 PTF FINL CORP 20957 SUN CITY MTG CO INC 21428 CHATTANOOGA MTG INC 21502 CAMBRIDGE HM LENDING INC 21578 FAIRWAY CAP MTG CORP 21697 ADVANCED HM LOANS CORP 21885 22528 DISCOUNT MTG WAREHOUSE IN ACADEMY MTG LLC (MD) 22601 WHOLESALE AMER MTG INC 22680 ATL MTG PLANNERS INC 22862 AMERIND FINL GRP INC 23002 NEW AMER MTG LLC 23374 ATLANTIC MTG CORP 23392 SECURE CAP MTG LLC TOTAL: 27 CODE BD BD BD BD LD LD BD LD LD BD BD BD BD LD BD BD BD BD BD LD LD LD BD BD LD LD BD REVOKED 05-05-2009 EXPIRED 05-14-2009 05-01-2009 SURRENDERED WITHDRAWN 05-28-2009 05-26-2009 05-29-2009 05-18-2009 05-04-2009 05-28-2009 05-25-2009 05-10-2009 05-05-2009 05-26-2009 05-11-2009 05-05-2009 05-29-2009 05-14-2009 05-22-2009 05-01-2009 05-13-2009 05-15-2009 05-26-2009 05-26-2009 05-22-2009 05-11-2009 05-01-2009 05-22-2009 DENIED Page 8 May 2009 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 We're on the Web! dbf.georgia.gov 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: "(a) A licLeincseeenssheaSlltgaivteusnoInticdeictoattohresdepartment by r(eMgBistCerDed) -orMcoerrttifgieadgemaLiilcoernstsaetuCtoordyeosver- 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 cUopmgprliaadneceBwroitkheCrotdoe 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. 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.