Monthly mortgage summary, Feb. 2013

Monthly Mortgage Summary

Georgia Department of Banking & Finance ~ Non-Depository Financial Institutions Division
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Inside this Issue:
Spring is on the 2 Way: Have you
Complied with Employee
Background Checks?
Fine Information 3
Licenses Revoked, 4 Withdrawn or Expired
Licenses Approved 5 or Reinstated
Customer Service 11 Stars
Contact 12 Information

New SAFE MLO Test with Uniform State Component to Start April 1, 2013
On January 16, 2013, the Conference of State Bank Supervisors ("CSBS") announced that a new national MLO test with a uniform state component will be available on April 1, 2013. The new test administered by the NMLS is meant to streamline the licensing process for originators seeking to obtain licenses in multiple states.
Beginning April 1, 2013, the Department will adopt the Uniform State Test ("UST"). For more information please review the Uniform State Test Implementation Information available directly on the NMLS's website.
Please pay specific attention to the Candidate Enrollment Scenarios, which were written to help new applicants and existing licensees determine if and how the implementation of the UST will impact their licensing requirements; particularly over the January - April, 2013 timeframe.

NDFI Outreach AND UPCOMING SPEAKING ENGAGEMENTS
Deputy Commissioner for Non-Depository Financial Institutions Rod Carnes will be speaking at the 9th Annual Georgia Real Estate Fraud Prevention and Awareness Coalition (GREFPAC) Conference on Wednesday, March 6th at the Cobb Galleria Centre, Atlanta.
"Safeguarding Georgia's Financial Services"

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February 2013

Spring is on the Way: Have you Complied with Employee Background Checks?

Whether Atlanta endures six more weeks of winter or an early spring, it isn't too soon to start spring cleaning to prepare your company for mortgage exams to come. The Department often cites background check violations. As you begin to hire new employees this year, keep in mind that there are several instances in which the Department may revoke a license or fine a licensee as a result of employee background check issues. Below is a list of questions that your compliance specialist should ensure that he or she has answered affirmatively:

Has the licensee actually performed background checks? O.C.G.A. 7-1-1004(k) requires that licensees complete background checks on all covered employees. Covered employees include those employees who physically work in the state of Georgia and who may enter, delete or verify any information on any mortgage loan application form or document. Under Department Rule 80-11-3-.01(23), a licensee is subject to a fine of one thousand dollars ($1,000) for each employee on whom the required background check was not conducted.

Morgan Clemons is an attorney with the NonDepository Financial Institutions Division

Are these background checks GCIC (Georgia Crime Information Center) compliant? Background checks must not have any time period limitations or restrictions in the search criteria. See DBF Rule 80-11-1-.05

Have these background checks been requested within 10 days of the initial date of hire? A background check must be initiated for a person in the employ of a licensee or applicant within ten (10) days of the date of initial hire. See DBF Rule 80-11-1-.05

Have satisfactory results for the background check been returned within 90 days? Background checks on all covered employees must be completed and found satisfactory by the licensee within ninety (90) days of the initial date of hire. Although the Rule allows 90 days to investigate ambiguous background check results, the 90 days is not a grace period in which a licensee is allowed to hire felons. See DBF Rule 80-11-1-.05

COMMONLY USED ACRONYMS
Department -- Georgia Department of Banking and Finance GRMA -- Georgia Residential Mortgage Act MCR -- Mortgage Call Report MLO -- Mortgage Loan Originator NMLS or NMLSR -- Nationwide Mortgage Licensing System & Registry

February 2013

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Spring is on the Way: Have you Complied with Employee Background Checks?

(Continued from page 2)

What were the results of the background check? Under Department Rule 80-11-3-.01(9) Any mortgage broker or mortgage lender licensee or registrant who hires or retains an employee who is a felon as described in O.C.G.A. 7-1-1004(h), which employee has not complied with the remedies provided for in O.C.GA. 7-1-1004(h), may be fined five thousand dollars ($5,000) per employee found to be in violation of such provision and their license or registration will be subject to revocation or suspension. Note that this rule violation is not limited to "covered employees."
Is the employee file complete? Department Rule 80-11-2-.02(n) requires that the licensee's employee files contain all documents related to hiring the employee, including criminal background check, date employment began, and date the Department's website was reviewed to verify eligibility for employment. Failure to maintain a complete and accurate employee file can result in a books and records violation under Department Rule 80-11-3-.01(11), which subjects the licensee to a fine of one thousand dollars ($1,000) for each violation.

It is ideal to keep your company's affairs in order year-round--not just when the groundhog fails to see his shadow. Regulatory compliance encourages honesty in the workplace, helps to avoid fines and administrative actions that will become public record, and helps maintain best practices.

Fine Information
1 Fine for Employment of a Felon

FINE REASON AND COUNT
3 Fines for Failure to Perform Background Check

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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 and/or teams for going above and beyond in serving our customers:
Senior Financial Mortgage Examiners Harold Carney and Fernando Ornelas The Department received comments from a customer stating: "I wanted to let you know how knowledgeable, helpful and insightful Harold Carney and Fernando Ornelas were. I had many accumulated questions saved up, and they were very patient in answering my questions. Not only did they do a great job of answering them, but also in providing background information and examples that made their answers easier to understand. They were also very considerate of my time while they were here, which was very much appreciated."

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

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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

February 2013
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, internaonal banking organizaons, and bank holding companies
conducng business in Georgia.
Our MISSION is to promote safe, sound, compeve financial services in Georgia through innovave, responsive regulaon and supervision.
Our VISION is to be the best financial services industry regulator in the country Progressive. Proacve. Service-Oriented.

Sign-up to Receive this Publication
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.