Monthly mortgage summary, Feb. 2010

Monthly Mortgage Summary

Georgia Department of Banking & Finance ~ Non-Depository Financial Institutions Division
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Inside this Issue:
NEWS ITEMS Mortgage Loan 2 Originator Licensing Now in Progress!
Annual Mortgage 3 Questionnaire
NDFI Customer 4 Service Stars
Outreach and 4 Upcoming Speaking
Engagements
ADMINISTRATIVE ITEMS Administrative 5 Actions
Fines 5
Licenses Approved & 6 Reinstated
Licenses Revoked, 6 Expired, Withdrawn
MLO Licenses 7 Approved
Contact Information 8

Personnel Files
Rule 80-11-2-.02(1)(n) of the Department of Banking and Finance provides that a licensed/registered mortgage broker or mortgage lender must maintain a personnel file for each employee. An employee file must contain all documents related to the hiring of an employee, including a criminal background check, as well as the date the Department's website (https://dbfweb.dbf.state.ga.us/MBAdmActions.html) was reviewed to verify an individual's eligibility for employment.
The requirement that the Department's website be checked is a provision of this Rule that is often overlooked. This step involves entering a prospective employee's name into the searchable database on the Department's website to ensure that he or she is eligible for employment in the residential mortgage industry. The Department's public database indicates whether an individual has received a Cease and Desist Order or has entered into a Consent Order with the Department.
In the event that an individual has been issued a final Cease and Desist Order by the Department, the date that the person is eligible to re-enter the industry, if one exists, will be clearly shown as part of the search results. In an instance in which a Consent Order has been entered into between a person and the Department, the terms of the agreement should be reviewed by a licensee/registrant to determine whether a person is eligible for hire and whether any restrictions have been placed on that individual with respect to the capacities in which he or she may work.
Not only should this search be performed for prospective employees, the Department recommends that licensees/registrants should check their current employees from time to time. In doing so, please keep in mind that a full name search will only return exact matches, so it may be best to enter only the first few letters of a person's name and scan the listings.
One of the surest ways to jeopardize your broker or lender license/registration is to hire someone that is ineligible to work in the industry by currently being under an Order to Cease and Desist. So remember to run those checks on the Department's website and maintain documentation of the search in the personnel file.

"Safeguarding Georgia's Financial Services"

Page 2

February 2010

Mortgage Loan Originator Licensing - Now in Progress!
Mortgage Loan Originator (MLO) licensing began on January 4, 2010. A MLO must have submitted a complete application for a Georgia MLO license by March 31, 2010, to be conditionally allowed to originate residential loans until final action is taken on the application by the Georgia Department of Banking and Finance ("Department"). Approval or denial of a MLO license will be issued by the Department as soon as possible but is expected to occur no later than June 30, 2010. Any MLO who fails to submit a complete application by March 31, 2010, must cease originating Georgia residential loans as of April 1, 2010. He or she may not originate any Georgia residential loans until such time an application for a MLO license is issued by the Department.
Any person, regardless of title or job duties, is required to have a MLO license if he/she performs mortgage loan origination activity as defined by the Georgia Residential Mortgage Act, O.C.G.A. 7-1-1000 et seq. There is no "grandfathering." It is up to each MLO to understand the requirements for licensure.
The Department has received a number of similar questions from prospective MLO licensees. The most common of these include:
Q. For purposes of MLO licensure, what does the Department regard as a "complete" application? A. For an application to be complete by March 31, 2010, the applicant must have completed 20 hours of
approved education, obtained a passing grade on both the national and state tests, submitted a criminal background check request through NMLS, paid the requisite fees, and submitted all jurisdiction-specific documents. A checklist can be found on NMLS and the Department's websites.
Q. How will I know if the Department has received all items required for my application? A. It is the responsibility of each MLO applicant to meet all requirements and submit all documentation in a
timely fashion. Jurisdiction-specific documents should be copied by the MLO for his or her records and sent to the Department in a manner that results in confirmation that they have been received. Discrepancies found by the Department with an application will be brought to the attention of the MLO applicant via NMLS email after the application is reviewed. Please note that if unaddressed discrepancies exist on or after April 1, 2010, a MLO applicant will be required to cease originating residential mortgage loans until such time as his or her license may be approved by the Department at a later date.
Q. Will I be able to discuss my application with someone at the Department? A. Generally speaking, no. When your application is being reviewed, someone from the Department may have
occasion to contact you. The Department regrets that its limited staff is unable to accept calls from each MLO applicant or his or her sponsoring licensee regarding the status of the application.
Q. As a sponsoring licensee, how will I know if my MLO employee is able to continue to originate Georgia residential loans?
A. Once an application is approved, the license number issued to a MLO can be found on the Department's website as well as the NMLS website. Since there is a transition period, your company will need to come up with a system that will work for you. You may wish to document the status of each MLO on March 31, 2010, or have each MLO you employ provide you with a written statement regarding his/her eligibility to continue originating loans after that date. On July 1, 2010, there will no longer be a question of whether a MLO is licensed, as the status of all licensees will be public information that can be obtained from the websites of the Department and the NMLS.

February 2010

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Mortgage Loan Originator Licensing - Now in Progress! (continued)
Q. I have an issue with my credit. Will this affect getting a MLO license? A. It could. In assessing an applicant's financial responsibility, the Department does not make a decision based
on credit scores but instead reviews a person's overall credit history. You can find more information about what is considered for financial responsibility on slide 15 of the PowerPoint presentation entitled "Mortgage Loan Originator Licensing" on the Department's website, www.dbf.georgia.gov/dbfmtg under "Mortgage Loan Originator Resources." If you have particular concerns about your credit, you may wish to submit as part of your application an explanation with your jurisdiction-specific documentation. Please do not contact the Department to make inquiries about specific credit issues as its staff will not be able to respond to questions regarding any MLO's personal situation.
Q. What happens if a loan I am working on is still in progress and I am unable to meet the March 31, 2010, MLO application requirement?
A. In such an instance, any work related to the origination of that loan can no longer be performed by a MLO who has not submitted a complete application to the Department. This means that as of April 1, 2010, any further mortgage loan origination activity on a pending loan must be handled by a MLO who has a complete application pending before the Department or by a MLO whose license application already has been approved.
Q. Can the original loan originator be paid for any part of his or her work on the loan in the above scenario?
A. Yes, if the loan originator is a supervised, exclusive, W2 employee or holds a Georgia broker's license in his/ her individual name, he or she can be compensated for mortgage origination that was performed on or before March 31, 2010.
Q. What happens if a MLO continues to originate Georgia residential loans after March 31, 2010, without a license or without a complete application pending?
A. Administrative action may be taken that may result in the MLO subsequently being denied a license. His or her sponsoring licensee also may have administrative action taken against it, which may include, but is not limited to, the revocation of its license.
(PLEASE NOTE: At this time no action is required to be taken in the Nationwide Mortgage Licensing System (NMLS) by any mortgage loan originator who is an employee of a federally insured depository institution or an owned and controlled subsidiary of such a depository institution that is federally regulated. Read more at: http://mortgage.nationwidelicensingsystem.org/fedreg/Pages/default.aspx)

Annual Mortgage Questionnaire
Information regarding calendar year 2009 operating and disclosure data must be submitted by all active mortgage brokers, processors, lenders and registrants that held a valid Georgia residential mortgage license/ registration during 2009. The information requested is the same as in prior years and must be completed and submitted online at: https://bkgfin.dbf.state.ga.us/MortgageDocs/AnnualQuestionnaire.html.
Please note that the website requires a UserID and Password. Login information was sent to each licensee's/ registrant's primary e-mail contact currently on record with the Department. Please complete the questionnaire by March 31, 2010.

Page 4

February 2010

NDFI CUSTOMER SERVICE STARS

It is the Department's goal to provide excellent customer service by meeting and exceeding the expectations of our customers. Along those lines, we would like to recognize the following individuals for going above and beyond in serving our customers:
Gloria Smith, Secretary/Receptionist and Rod Carnes, Deputy Commissioner for Non-Depository Financial Institutions - The Department received the following comments from a customer stating: "I came into your office the other day and was a little confused by the paperwork I needed to complete. I wanted to let you know how much I appreciated the help I received from Gloria. She was patient and explained the information to help me complete the paperwork. I also wanted you to know that Rod Carnes continues to do a super job at our test training classes! He is very knowledgeable and adds a friendly face to the Department."
Non-Depository Financial Institutions Division (Mortgage Section) - The Department received the following comments from a customer stating: "The Georgia delegation was missed at the recent NMLS conference! Just want you to know that many industry people when discussing our favorite and not-so-favorite regulators often said the DBF was one of the most respected authorities in terms of responsiveness, clarity, professionalism, NMLS transition issues, etc. Anyway, the DBF was missed! "

CONGRATULATIONS AND GREAT JOB TO THIS MONTH'S CUSTOMER SERVICE STARS!!

NDFI Outreach
AND UPCOMING SPEAKING ENGAGEMENTS
Commissioner Braswell will be speaking at the 2010 Georgia Southeastern Region Community Bank Group Symposium on March 24th at the Forest Heights Country Club in Statesboro, GA.

OFFICE CLOSING
This is a reminder that the Department will be closed on Friday, April 2nd for an employee furlough day.

February 2010
ADMINISTRATIVE ACTIONS

Page 5

Cease and Desist Orders Which Became Final
Elmore, Vanessa, Lithonia, GA - Order to Cease and Desist issued 01/12/2010 became final 02/19/2010.
Livingston, Nathan DBA Loan Help Solutions DBA Mortgage Help Solutions, Decatur, GA - Order to Cease and Desist issued 01/07/2010 became final 02/26/2010.
Northstar Mortgage Group, LLC, Marietta, GA (license# 20887) - Order to Cease and Desist issued 12/31/2009 became final 02/01/2010.
Superior Home Equity, LLC, Chattanooga, TN (license# 15326) - Order to Cease and Desist issued 01/19/2010 became final 02/18/2010.
United Law Group, Inc., Irvine, CA - Order to Cease and Desist issued 12/17/2009 became final 02/26/2010.

Final Consent Orders
Ryland Mortgage Company, Calabasas, CA (license# 6499) - Consent Order issued 02/01/2010 became final 02/01/2010.

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

1 Licensee fined for Books and Records 1 Licensee fined for doing business w/ an unlicensed entity 1 Licensee fined for Unapproved Branch 1 Licensee fined for Background Checks violation

1 Licensee fined for Prohibited Acts violations/discharge 1 Licensee fined for Unapproved Branch Manager 3 Licensees fined for Advertising violations

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February 2010

February 2010

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Georgia Department of Banking and Finance
2990 Brandywine Road Suite 200
Atlanta, Georgia 30341-5565
Phone: (770) 986-1136 Fax: (770) 986-1029 or 1655
Email: dbfmort@dbf.state.ga.us
We're on the Web! dbf.georgia.gov

February 2010
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/processors, lenders and loan originators, money service businesses, international banking organizations, and bank holding compa-
nies 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.

Sign-up to Receive this Publication
This publication is delivered to interested parties via email and is also available from the Department's website at: http://dbf.georgia.gov under Publications, Mortgage Summary.
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, e-mail address, and the publication to which you wish to subscribe.