Monthly mortgage summary, May 2011

Monthly
Mortgage Summary

Georgia Department of Banking & Finance ~ Non-Depository Financial Institutions Division
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Inside this Issue:
Governor Deal Signs 2 House Bill 239 (continued)
Administrative 3 Actions
License Denials 5
Licenses Revoked, 5 Expired, Withdrawn
Fine Information 5
Licenses Approved, 6 Renewed or Reinstated
DBF Recognizes 2010 9 Award Winners
Customer Service 10 Stars
Contact Information 11

Governor Deal Signs House Bill 239
During the 2011 legislative session, the Georgia Department of Banking and Finance (Department) sponsored House Bill (HB 239) - a "Housekeeping Bill" to provide statutory clarifications. HB 239 was signed by Governor Deal on May 11, 2011, and will become effective on July 1, 2011.
A brief synopsis of the statutory changes affecting the Georgia Residential Mortgage Act (GRMA) is as follows:
Definitions. (O.C.G.A. 7-1-1000)
The definition of "mortgage lender" is clarified to include any person that holds mortgage loans. The definition of "Nationwide Mortgage Licensing System or Registry" is amended to include any successor to the mortgage system currently in place.
Exemption for certain persons and entities; registration requirements. (O.C.G.A. 7-1-1001)
Language was added to clarify that attorneys exempt from mortgage loan originator, mortgage broker, or mortgage lender licensing requirements must be licensed to practice law in the state of Georgia.
Requirement for mortgage loan originator license; application to sellers of mobile homes. (O.C.G.A. 7-1-1001.1)
Superfluous language has been removed from this code section to acknowledge that mortgage loan originator licensing is required. The date which the licensing of mortgage loan originators was officially required August 1, 2010 has been added to the law, and a clarification has been made to reference the federal Safe and Fair Enforcement for Mortgage Licensing Act of 2008.
The August 1, 2010, date may at first appear to be in error since that date has already passed; however, the current language at O.C.G.A. 7-1-1001.1(a) provides a licensing date of "January 1, 2010, or such later date approved by the Secretary of the United States Department of Housing and Urban Development . . ." The Department in conjunction with discussions with HUD extended the licensing deadline to August 1, 2010.
(Continued on page 2)

"Safeguarding Georgia's Financial Services"

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May 2011

Governor Deal Signs House Bill 239 (continued)
(Continued from page 1)
Transaction of business without a license, registration, or exemption prohibited; knowing purchase of mortgage loan from unlicensed or nonexempt broker or lender prohibited; liability of persons controlling violators. (O.C.G.A. 7-1-1002) A citation correction is the only change to this code section.
Financial requirements for licensing and registration; bond requirements. (O.C.G.A. 7-1-1003.2) The change to this code section requires that each mortgage loan originator be covered by the surety bond of his or her sponsoring licensed or registered mortgage broker or lender.
Uniform multistate administration of automated licensing system for mortgage loan originators, mortgage brokers, and mortgage lenders. (O.C.G.A. 7-1-1003.5) Changes are intended to update the existing language to recognize that mortgage loan originator licensing is now an existing process as opposed to one that is prospective in nature.
Privileged or confidential nature of information; exception. (O.C.G.A. 7-1-1003.6) A clarification has been made to a reference to the federal Safe and Fair Enforcement for Mortgage Licensing Act of 2008. Language has been added to allow the Department to share information with other agencies and law enforcement authorities.
Approval of mortgage industry related courses; application; renewal applications; audits. (O.C.G.A. 71-1003.7) A citation correction is the only change to this code section.
Investigation of applicant and its officers; audit; education, experience, and other requirements relative to licensees and registrants. (O.C.G.A. 7-1-1004) The language deletion in this section is the result of the new requirement that each mortgage loan originator be covered by the surety bond of his or her sponsoring licensed or registered mortgage broker or lender.
The language change in O.C.G.A. 7-1-1004(h) is intended to make state law mirror the federal Safe and Fair Enforcement for Mortgage Licensing Act of 2008 as it relates to mortgage loan originators who have felony convictions. O.C.G.A. 7-1-1004(o) has been rewritten to enhance the readability of this code section and move to 7-1-1004(p) a requirement that licensees check the public records of the Department before hiring an employee.
Renewal of licenses and registrations; Expiration. (O.C.G.A. 7-1-1005) Language has been added to this code section to define "proper application" and to provide that no refunds are permissible once a renewal fee has been paid. Language has been added requiring that an applicant for renewal must be in compliance with all orders of the Department.

May 2011

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Governor Deal Signs House Bill 239 (continued)
(Continued from page 2)
Acquisition of 10 percent or more of the voting shares or of the ownership of any other entity licensed to conduct business under this article. (O.C.G.A. 7-1-1008) Language has been added to clarify that this code section applies to registrants as well as licensees.
Suspension or revocation of licenses, registrations, or mortgage broker education approval; notice; judicial review; effect on preexisting contract. (O.C.G.A. 7-1-1017) A change was made to clarify that once an administrative action is initiated against an applicant for a license, the Department may pursue that action to its conclusion even if the applicant withdraws his or her request for a license.
Cease and desist orders; enforcement procedure; civil penalty; fines. (O.C.G.A. 7-1-1018) A change is included in this code section to provide that any person who violates the terms of an order issued by the Department may be subject to a penalty that shall be calculated per violation per day unless otherwise agreed to by the Department.
A full synopsis of HB239, including changes impacting depository financial institutions, can be found on our website at: http://dbf.georgia.gov/vgn/images/portal/cit_1210/37/10/1719059862011HKbillTalkingPointsFinal-May2011.pdf.

ADMINISTRATIVE ACTIONS
Cease and Desist Orders Which Became Final
America's Network Realty Group, Atlanta, GA - Order to Cease and Desist issued 04/29/2011 became final
05/31/2011.
AP Lending, LLC, Duluth, GA (license# 12574) - Order to Cease and Desist issued 04/20/2011 became final
05/19/2011.
Baker, Sheldon Mark Henry, Atlanta, GA - Order to Cease and Desist issued 04/07/2011 became final
05/10/2011.
Bella Homes, LLC, Scottsdale, GA - Order to Cease and Desist issued 04/08/2011 became final 05/10/2011.
Brayden Capital, LLC, Atlanta, GA - Order to Cease and Desist issued 04/15/2011 became final 05/16/2011.

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May 2011

ADMINISTRATIVE ACTIONS
Cease and Desist Orders Which Became Final
Carter, Charles Lee aka Bo Carter, Bogart, GA - Order to Cease and Desist issued 04/07/2011 became final
05/10/2011.
Coastal States Mortgage Corporation, Fort Lauderdale, FL - Order to Cease and Desist issued 04/08/2011
became final 05/09/2011.
Covin, Michael J., Snellville, GA - Order to Cease and Desist issued 04/12/2011 became final 05/13/2011.
Mortgage Professionals, Inc. (DE), Camp Hill, PA (license# 20598) - Order to Cease and Desist issued
04/01/2011 became final 05/02/2011.
Shelton, Gwendolyn D., Kennesaw, GA - Orders to Cease and Desist (2) issued 04/29/2011 became final
05/31/2011.
Short Sale Agent, LLC fka Short Sale Realtor, LLC dba www.shortsale-agent.com, Cumming, GA -
Order to Cease and Desist issued 04/12/2011 became final 05/18/2011.
Short Sale Georgia, LLC dba www.shortsalega.com dba www.shortsalega.wordpress.com, Dawsonville,
GA - Order to Cease and Desist issued 04/12/2011 became final 05/18/2011.
Xcelerated Financial Solutions, LLC fka Georgia Foreclosure Center fka Foreclosure Crisis Center,
Alpharetta, GA - Order to Cease and Desist issued 04/29/2011 became final 05/31/2011.

Final Consent Orders
Mortgage Now, Inc., Brooklyn Heights, OH (license# 15583) - Consent Order issued 05/13/2011 became final
05/13/2011.

Superior Court Injunctions Issued
Kondaur Capital Corporation, Orange, CA - Gwinnett County Superior Court entered a Final Consent Order
on 05/26/2011 which was issued on 05/26/2011.

May 2011
License Denials

Page 5

Fine Information

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

1 Licensee fined for Change in Management

FINE REASON
7 Licensees fined for Unapproved Branch Manager

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DBF Recognizes 2010 Award Winners
During meetings and other events held around the state in May, the Department recognized winners of its 2010 Employee Recognition Awards. This annual awards process formally recognizes outstanding employee performance during the previous calendar year. "I think it's essential that we reward and celebrate outstanding performance. The annual awards program is just one of several ways in which we try to showcase excellent service and leadership skills," said Commissioner Rob Braswell. Award winners from the Non-Depository Financial Institutions Division include:

The "Jenny Neville" Customer Service Award was presented to Senior Financial Examiner (Mortgage) Bob Bauguss. This award is presented to an individual that has
made exceptional contributions that exceeded expectations in delivering services to external and/or internal customers. This individual has taken initiative in "going the extra mile" to provide service to internal and/or external customers with timely and appropriate follow-up, responsiveness to the needs of all customers and demonstrated improvement of customer service and satisfaction.

Bob Bauguss (pictured with Commissioner Braswell)

The Community Service Award was presented to Non-Depository Financial Institutions Division Senior Attorney Helen O'Leary. This individual through volunteerism
or paid community service, must have exhibited dedication by improving the quality of life for members of the community and/or made program improvements. This may be an individual who has broad-based or community involvement, i.e. community or professional boards, service clubs, faith-based organizations, local and national charitable, legal or professional, or civic organizations.

Helen O'Leary (pictured with Commissioner Braswell)

Betty Thomas (pictured with Commissioner Braswell)

A Gold Medal Award was presented to Senior Financial Examiner Betty Thomas.
Individuals are selected each year from a list of nominees for their division or work area. This award is given to individuals whose overall performance has consistently reflected a high level of service, trustworthiness, and respect; who have demonstrated a consistent commitment to delivering products, services and/or information that satisfies customers by exceeding their requirements or expectations; who work effectively as part of a team to successfully accomplish a task or meet a goal; who creates a team environment that promotes communication, trust, cooperation and respect for differences; who contributes to a group effort which has a significant impact on Department goals; and/or who accepts responsibility and accountability in helping to advance the Department's mission, vision or goals.

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May 2011

CUSTOMER SERVICE STARS FOR THE MONTH OF MAY
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:
Supervisory Manager Janet Anderson, Review Examiner Deborah Long and Applications Analyst Irene Harper The Department received several comments from customers stating: "I have been working on licensing in several states over the past 12 months and I found Georgia to be extremely straight forward and timely. As a busy professional, I really appreciate the professionalism of your staff." and "Janet Anderson was my contact during the application process. She was extremely knowledgeable and helpful. Being licensed in 20 states, Georgia was one of the most helpful and pleasant departments that I have dealt with over the last two years." and "I have contacted both Deborah Long and Irene Harper on several occasions. Both have been extremely helpful, always courteous, and prompt at returning phone calls. Most often they are able to answer any questions, if not they will check and always get back to me. They have been delightful to work with."
CONGRATULATIONS AND GREAT JOB TO THIS MONTH'S CUSTOMER SERVICE STARS!!

May 2011
Georgia Department of Banking and Finance
2990 Brandywine Road Suite 200
Atlanta, Georgia 30341-5565
Phone: (770) 986-1269 Fax: (770) 986-1029 or 1655
Email: dbfmort@dbf.state.ga.us
We're on the Web! dbf.georgia.gov

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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.

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