Monthly Mortgage Summary Georgia Department of Banking & Finance ~ Non-Depository Financial Institutions Division Monthly SumMmonatrhylyoSfuMmmoratrgyaogfeMoArcttgiavgietiAecstivfoitrietshfoer PtheeriPoedrioEdndEnindigngAApprrilil 22000170 Inside this Issue: NEWS ITEMS Mortgage Loan 2 Originator Licensing (continued) Pending Increase in 3 GRMA Per Loan Fee from $6.50 to $10.00 NDFI Customer 4 Service Star Administrative 4 Actions Fines 5 Licenses Approved 5 and Reinstated Licenses Revoked, 19 Expired, Withdrawn Contact Information 20 Mortgage Loan Originator Licensing The Department is busy working the Mortgage Loan Originator (MLO) applications that were submitted on or before April 16, 2010. Over 4,700 MLO applications were received. Of these, approximately 20% have been flagged by the Nationwide Mortgage Licensing System (NMLS) for the Department due to the failure of MLO applicants to satisfactorily complete pre-licensing education, testing, and/or fingerprint requirements. Although the NMLS sent an e-mail to those MLO applicants that failed to meet their fingerprint obligation, it did not contact those applicants that did not complete any of the other licensing requirements. At this time, the Department is unable to notify each MLO whether he or she failed to meet any of these requirements. A MLO can review his/her own NMLS record for pre-licensing education and test results. If a MLO's NMLS record is not correct, for example the pre-licensing education was completed but is not posted, he or she must work directly with the NMLS to correct the reporting error. In such a case, if the requirement was satisfied on or before the April 16, 2010 deadline but was not posted by the NMLS until a later date, the MLO applicant should send an e-mail to the Department at Newapps@dbf.state.ga.us to alert its staff about this situation. Complete MLO applications that were filed on or before April 16, 2010, are being worked as quickly as possible, with approvals or denials currently expected to be issued by the Department no later than June 30, 2010. Any MLO applications that were not complete as filed on or before April 16, 2010, but were completed thereafter as well as any new MLO applications received after that date will be worked by members of the Department staff after they process all pending complete applications. Please note: NMLS will show a MLO's status as "Pending--Incomplete" until the license is approved or denied. A MLO will receive an automated e-mail when the (Continued on page 2) "Safeguarding Georgia's Financial Services" Page 2 April 2010 Mortgage Loan Originator Licensing (Continued from page 1) application is being worked, such as accepting sponsorship. This is only one facet in processing a MLO application and does not mean it has been approved or denied at that time. NMLS was not able to post state certification in lieu of pre-licensing education for applicable states until May 1, 2010. State certification that was obtained timely is not considered a failure to meet requirements; however, these MLO applications could not be processed until the requisite certification was posted. (NOTE: This does not apply to most MLOs.) The Department has previously addressed the issues of permissible activity and compensation for those MLOs that did not meet application requirements. Please refer to "Important Update: Most Common MLO Licensing Questions" on the Department's website under "Mortgage Loan Originator Resources" for this information. (NOTE: The March 31, 2010, application filing deadline referred to in the article was extended by the Department until April 16, 2010.) The Department regrets that it is unable to respond to phone calls or e-mails from individuals inquiring generally about the status of their MLO applications. For the issues identified hereinafter, the Department will accept e-mail at Newapps@dbf.state.ga.us from individuals who submitted complete MLO applications on or before April 16, 2010: NMLS record error--a specified requirement was completed on/before April 16, 2010, and now has been posted correctly by the NMLS. State certification is being used in lieu of pre-licensing education and has now been posted to NMLS. Sponsorship has changed after an initial MLO application submission but prior to application approval. Old sponsorship must be removed and the new sponsor must submit the sponsorship request in NMLS. A new bond designation form also must be submitted to the Department. Credit issue--pending bankruptcy has been completed OR tax lien, judgment, collection, etc. has been cleared. Documentation must be submitted to the Department. MLO application was sent on or before April 16, 2010, but was not complete. The requirement of passing the state and/or national test has now been satisfied. (This is to be used for passing either or both tests that were previously failed on or before April 16, 2010. These MLO applications will be reviewed in the order when notice was received after the April 16, 2010, complete application batch has been processed.) Any applicant wishing to send the Department an e-mail about one of these issues should include his or her name and NMLS number in the subject line. April 2010 Page 3 Mortgage Loan Originator Licensing (Continued from page 2) Due to unforeseen circumstances, a MLO's license information cannot be viewed on the agency's website but will be posted in the agency's Monthly Summary with the Department license number and NMLS number for the month following approval. Please refer to NMLS's consumer access website where you can search for information concerning state-licensed mortgage companies, branches, and individuals. The Department appreciates your patience during the time it takes to process MLO applications that have been submitted. Pending Increase in GRMA Per Loan Fee from $6.50 to $10.00 During the 2010 Legislative Session, House Bill 1055 was passed by the Georgia General Assembly. This bill includes a provision that increases from $6.50 to $10.00 the loan fee that must be remitted to the Department for each residential mortgage loan that closes for which a security deed, a modification of a security deed or other form of modification of a security interest is recorded. Although House Bill 1055 was passed by the Legislature, it will not take effect until the Governor signs it. As of the date of the issuance of this publication, the Governor has not signed or taken any other action regarding this bill. The Department will provide notice via e-mail to mortgage brokers, mortgage lenders and financial institutions when House Bill 1055 becomes law and will post information on the agency's website as it becomes available. For the period of January 1- June 30, 2010, per loan fees must be remitted to the Department no later than Wednesday, September 1, 2010. The fee that must be remitted to the Department for each residential mortgage loan closed as of the effective date of the law is $10.00. A fee of $6.50 must be submitted to the Department for every residential mortgage loan that was closed before the date the law took effect. In anticipation of this bill becoming law, the Department recommends that financial institutions, mortgage lenders and mortgage brokers begin to review their policies, procedures, computer programs, loan form documents, etc. for changes that will need to be made to provide for the increase in the fee amount. OFFICE CLOSING This is a reminder that the Department will be closed on Monday, May 10th and Tuesday, June 1st for employee furlough days and on Monday, May 31st for Memorial Day. Page 4 April 2010 NDFI CUSTOMER SERVICE STAR 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 individual for going above and beyond in serving our customers: Senior Financial Examiner Bob Bauguss - The Department received an e-mail from a customer stating: "I would like to submit Mr. Bob Bauguss for Customer Service Star. Mr. Bauguss displayed tremendous professionalism and patience in my loan originator process. My stress level was greatly reduced with his positive attitude. Thank you Mr. Bauguss!" CONGRATULATIONS AND GREAT JOB TO THIS MONTH'S CUSTOMER SERVICE STAR!! ADMINISTRATIVE ACTIONS Cease and Desist Orders Which Became Final American Modification Consultants, LLC d/b/a www.americanmitigationconsultants.com, Philadelphia, PA - Order to Cease and Desist issued 03/23/2010 became final 04/28/2010. Brandon Burke, Rome, GA (license# 22572) - Order to Cease and Desist issued 03/15/2010 became final 04/16/2010. Elmore, Vanessa, Snellville, GA - Order to Cease and Desist issued 03/22/2010 became final 04/22/2010. H.O.P.E. Alliance d/b/a Home Ownership Protection Education Alliance, Inc. d/b/a www.helpnowalliance.org, Tampa, FL - Order to Cease and Desist issued 03/23/2010 became final 04/28/2010. Instant Funding, LLC, LaJolla, CA - Order to Cease and Desist issued 03/23/2010 became final 04/28/2010. Kirkland Young, LLC, Miami, FL - Order to Cease and Desist issued 03/23/2010 became final 04/28/2010. Loan Servicing Group, LLC, LaJolla, CA - Order to Cease and Desist issued 03/23/2010 became final 04/28/2010. National Home Loan Advocates, LLC d/b/a www.nationalhomeloanadvocates.com, Dallas, TX - Order to Cease and Desist issued 03/23/2010 became final 04/28/2010. Realty 1st, Inc., Norcross, GA - Order to Cease and Desist issued 03/30/2010 became final 04/30/2010. U.S. Loan Solutions d/b/a www.myusloansolutions.com, Smyrna, GA - Order to Cease and Desist issued 03/31/2010 became final 04/19/2010. April 2010 Fine Information Page 5 Information regarding fines assessed against a specific licensee for which there is no pending administrative action, 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 2 Licensees fined for Books and Records 2 Licensees fined for Unapproved Branch Manager 2 Licensees fined for Advertising violations 2 Licensees fined for acquisition of 25% ownership without approval 3 Licensees fined for Loan Files not properly maintained 1 Licensee fined for doing business with an unlicensed entity 1 Licensee fined for Change in Management 1 Licensee fined for Unapproved Branch 4 Licensees fined for Background Checks violation 1 Licensee fined for Employer Under C&D or Revocation 2 Licensees fined for 1099 employees violation Page 6 April 2010 April 2010 Page 7 Page 8 April 2010 April 2010 Page 9 Page 10 April 2010 April 2010 Page 11 Page 12 April 2010 April 2010 Page 13 Page 14 April 2010 April 2010 Page 15 Page 16 April 2010 April 2010 Page 17 Page 18 April 2010 April 2010 Page 19 Page 20 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 April 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.