Monthly mortgage summary, July 2011

Monthly Mortgage Summary

Georgia Department of Banking & Finance ~ Non-Depository Financial Institutions Division
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Inside this Issue:
Georgia Department 2 of Banking and
Finance Adopts Final Rules
Continuing Education 2 Requirements for 2012 License Renewal
2012 License / 3 Registration Renewal
Timeline
Administrative 4 Actions
License Denials 5
Fine Information 6
Licenses Revoked, 6 Expired, Withdrawn
Licenses Approved, 7 Renewed or Reinstated
Customer Service 12 Stars
Contact Information 13

Georgia Residential Mortgage Act Fee Reminder
The $10.00 per loan fees required by O.C.G.A. Section 7-1-1011(b)(2) and Department Rule 80-5-1-.04 are due no later than September 1, 2011, for residential mortgage loans closed during the period January 1, 2011, through June 30, 2011. A $10.00 fee will be due if the loan is a residential mortgage loan as defined in the Georgia Residential Mortgage Act (GRMA), and if a security deed, a modification of a security deed or other form of modification of a security interest is recorded.
Financial institutions, mortgage licensees and registrants that act as the collecting agent (including brokers who table fund and collect the fee) must submit the fees and file the fee statement before the deadline to avoid fines and possible administrative action.
GRMA per loan fee reporting / remittance must be completed on-line through the Department's secure website. Reporting is required even if no residential mortgage loans were made and no fees are due. To avoid fines for failure to report / remit GRMA fees, reporting must be completed by the deadline noted above.
With the on-line payment process, the Department accepts either ACH drafts on a checking account or payments by Visa, MasterCard, AmericanExpress, or DiscoverCard credit cards. Reporting and fee payment must be done on-line from our secure website at: https://bkgfin.dbf.state.ga.us/GRMAFee.html.
IMPORTANT NOTE: The Department adopted final rules on August 1, 2011, including a change to the fine authorized in Department Rule 80-11-3-.01(13) for late filing of the online fee statement forms. Effective August 22, 2011, the fine will be reduced from $1,000 to $100 per occurrence. There will be no waivers of fines assessed if the online form and fee payment (where applicable) has not been submitted by the September 1st deadline referenced above.
NDFI Outreach
AND UPCOMING SPEAKING ENGAGEMENTS
Deputy Commissioner for Non-Depository Financial Institutions Rod Carnes will be speaking to the Georgia Manufactured Housing Association on Thursday, August 18th in Forsyth, GA. He will also be speaking to the National Mortgage Learning Foundation on Wednesday, August 24th in Atlanta, GA.

"Safeguarding Georgia's Financial Services"

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July 2011

Georgia Department of Banking and Finance Adopts Final Rules
On August 1, 2011, the Georgia Department of Banking and Finance adopted Final Rules. They were filed with the Secretary of State on August 2, 2011, and will be effective 20 days thereafter, or August 22, 2011. These rules were proposed and distributed on June 28, 2011.
The Department received seven written comments, one concerning electronic versus paper reporting for $10.00 per mortgage fees, one concerning the cost of a mortgage broker's license, and five concerning the consequences for mortgage loan originators that lack sponsorship for licensure. Department staff thoughtfully considered every comment that was received in response to the issuance of the proposed rules. The Department believes these Final Rules encourage safety and soundness, safe and fair mortgage lending, and conform to the law.
To view or download the Final Rules on our website, go to Laws and Regulations from our homepage (http://dbf.georgia.gov) and select the appropriate link for the Final Rules OR access them directly from http://dbf.georgia.gov/vgn/images/portal/cit_1210/43/44/174045621DBFFinalRules_8-1-2011.pdf

Continuing Education Requirements for 2012 License Renewal: Mortgage Loan Originators and Mortgage Brokers
On or before October 31, 2011, mortgage loan originators and mortgage brokers must obtain 8 hours of continuing education to renew their licenses for 2012.
Mortgage brokers and mortgage loan originators approved for licensure that obtained their pre-licensing education in 2011 do not have to obtain continuing education for the renewal of their licenses in 2012.
Continuing education obtained by mortgage loan originators for license renewal must be: taken for the required number of hours in the following areas of study:
3 hours in federal law and regulations: 2 hours in ethics, which shall include instruction on fraud, consumer protection and fair lending issues; 2 hours in training related to lending standards for the nontraditional loan product marketplace; and 1 hour in coursework that covers changes made to the Georgia Residential Mortgage Act, O.C.G.A.
7-1-1000, and its corresponding regulations. approved by the Nationwide Mortgage Licensing System and Registry (NMLSR) and offered by an authorized
person or entity; taken in a classroom setting or on-line; and acquired on January 1, 2011, through October 31, 2011.
Similarly, mortgage brokers licensed by the Department must obtain 8 hours of approved continuing education between January 1, 2011, through October 31, 2011. Mortgage brokers also licensed as mortgage loan originators are only required to obtain 8 hours of continuing education in the areas designated above.
Mortgage brokers that are not licensed as mortgage loan originators must obtain a minimum of 8 hours of continuing education in areas that include the mortgage brokering process; federal mortgage law, rules, and regulations; Georgia

July 2011

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Continuing Education Requirements for 2012 License Renewal: Mortgage Loan Originators and Mortgage Brokers (continued)
(Continued from page 2)

residential mortgage law, rules and regulations; mortgage loan applications and required supporting documentation; fraud; ethics; and/or any other topic pertinent to the operation of a mortgage brokering business in Georgia. At least 1 hour of continuing education must be obtained by in coursework that is concentrated on fraud detection and prevention.
To find out when and where necessary course work will be offered to satisfy Georgia's continuing education requirements, mortgage licensees should visit the NMLSR website at http://mortgage.nationwidelicensingsystem.org/profreq/education/Pages/default.aspx.

2012 License / Registration Renewal Timeline for Mortgage Lenders, Mortgage Brokers and Mortgage Loan Originators
Beginning on November 1, 2011, through December 1, 2011, mortgage lenders, mortgage brokers, and mortgage loan originators seeking to renew their licenses/registrations for calendar year 2012 must do so by making applications on the Nationwide Mortgage Licensing System and Registry (NMLSR). To do so, an applicant must update his/her/its MU documents on the NMLSR to reflect any changes in responses previously provided and pay the requisite renewal fee. Licensed mortgage brokers and mortgage loan originators also must be able to demonstrate that 8 hours of continuing education were acquired in the appropriate course work during January 1, 2011, through October 31, 2011.
Any licensed mortgage broker or mortgage loan originator that makes a timely application for renewal but obtains the requisite continuing education hours on November 1, 2011, through December 1, 2011, also must pay late continuing education fees to both the NMLSR and the Department.
A mortgage license/registration that is not renewed by December 1, 2011 may be considered for late renewal from December 2, 2011, through December 31, 2011, if a proper application is made through the NMLSR. This includes paying late fees to both the Department and the NMLSR, as well as a renewal fee; updating one's MU documents on the NMLSR, and, for licensed mortgage brokers and mortgage loan originators, demonstrating compliance with continuing education requirements.
In addition to the foregoing, any licensed mortgage broker or mortgage loan originator renewing during this late period that did not obtain the proper number and type of continuing education hours between January 1, 2011, and October 31, 2011, also must pay late fees to both the NMLSR and the Department for continuing education hours obtained on November 1, 2011, through December 31, 2011.
PLEASE NOTE THAT UNLIKE PRIOR YEARS, THERE WILL BE NO LICENSE/REGISTRATION REINSTATEMENT PERIOD AFTER DECEMBER 31, 2011. If a mortgage license/registration is not renewed by that day, it will expire by operation of law effective January 1, 2012.
Should this occur, a mortgage loan originator with an expired Georgia license may not engage in any mortgage loan originator activities unless and until such time as a new application for licensure is made and granted by the Department.

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July 2011

2012 License / Registration Renewal Timeline for Mortgage Lenders, Mortgage Brokers and Mortgage Loan Originators
(Continued from page 3)

Similarly, a mortgage broker or mortgage lender with an expired license/registration may not conduct licensed mortgage activity--nor may any of the mortgage loan originators employed by them do so on their behalf--unless and until such time as the mortgage broker or mortgage lender again becomes properly licensed/registered.
If any mortgage licensee/registrant has questions about the timelines in place for renewal applications, please send them to the Department by e-mail to renewal@dbf.state.ga.us.

ADMINISTRATIVE ACTIONS
Cease and Desist Orders Which Became Final
Cantaro Secured Opportunities Fund, LLC, Austin, TX (license# 30447) - Order to Cease and Desist issued
06/10/2011 became final 07/12/2011.
Carol Leticelia Jones, Duluth, GA (license# 23410) - Order to Cease and Desist issued 06/14/2011 became final
07/13/2011.
Jones & Veal Mobile Homes, Inc., Waycross, GA (license# 14467) - Order to Cease and Desist issued
06/08/2011 became final 07/07/2011.
Narain, Sookrani Sattie, Ft. Lauderdale, FL - Order to Cease and Desist issued 05/03/2010 became final
07/21/2011.
Professional Lending, LLC, LaGrange, GA (license# 13104) - Order to Cease and Desist issued 06/29/2011
became final 07/28/2011.
Starr, Glenn aka Glinn Starr, Dacula, GA - Order to Cease and Desist issued 06/23/2011 became final
07/27/2011.
Final Consent Orders
Belanger, Judith, Houston, TX - Consent Order issued 07/21/2011 became final. 07/21/2011 Callicott, Terilyn Haney, Jacksonville, FL - Consent Order issued 07/21/2011 became final 07/21/2011. Cornerstone Mortgage Company (Texas) dba Brayden Capital Home Loans, Houston, TX (license#
21877) - Consent Order issued 07/21/2011 became final 07/21/2011.

July 2011

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ADMINISTRATIVE ACTIONS
Final Consent Orders (continued)
Homeowners Mortgage of America, Inc. dba Foundation Financial Group, Atlanta, GA (license# 14389)
- Consent Order issued 07/21/2011 became final 07/21/2011.
Laird, Marcus, Houston, TX - Consent Order issued 07/21/2011 became final 07/21/2011. Narain, Sookrani Sattie, Ft. Lauderdale, FL - Consent Order issued 07/21/2011 became final 07/21/2011. Nations Funding Source, Inc., Ft. Lauderdale, FL (license# 22049) - Consent Order issued 07/21/2011
became final 07/21/2011.
Scott, Paul Vincent, Jacksonville, FL - Consent Order issued 07/21/2011 became final 07/21/2011. Williams, Kris, Jacksonville, FL - Consent Order issued 07/21/2011 became final 07/21/2011.

License Denials

HOLIDAY CLOSING
This is a reminder that the Department will be closed on Monday, September 5th for Labor Day.

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July 2011

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

FINE REASON

1 Licensee fined for Hiring a Felon 1 Licensee fined for Failure to Perform Background Checks

1 Licensee fined for Books and Records 1 Licensee fined for Miscellaneous / Other

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July 2011

CUSTOMER SERVICE STARS FOR THE MONTH OF JULY
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:
Applications Analyst Irene Harper The Department received comments from a customer stating: I just wanted to say that Irene Harper was and still is a great asset within your organization. She made my transition as simple as could be to my new company. Once again I would like for you to know how much we appreciate her. Thank you Irene Harper!
Senior Financial Examiner Betty Thomas and her Mortgage Examination Team The Department received comments from a customer stating: We wanted to take the opportunity to thank the Department for all their help during our review. Ms. Thomas and her team were more than generous with their time and were very helpful throughout the exam process.

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

July 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

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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.

We're on the Web! dbf.georgia.gov

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This monthly publication highlights topics and activities pertaining to the Department's regulation of state-licensed or registered mortgage brokers, lenders and loan originators. It is delivered to interested parties via e-mail 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, send an e-mail to dbfpress@dbf.state.ga.us stating your name and e-mail address. Please be sure to include Subscribe to Monthly Mortgage Summary" in the Subject line.