Atlanta, Georgia — On March 6, 2014, the Georgia Department of Banking and Finance (“Department”) entered into a Consent Order with Southeast Mortgage of Georgia, Inc., NMLS # 103956, located at 3496 Club Drive, Lawrenceville, Georgia 30044, to resolve allegations pertaining to violations of the Georgia Residential Mortgage Act.
The terms of the Consent Order include the following:
- Southeast Mortgage of Georgia, Inc. shall develop and implement policies that will ensure compliance with all applicable Georgia laws and regulations, including implementing measures to ensure that its business operations and employees are subject to an appropriate level of supervision at all times;
- Southeast Mortgage of Georgia, Inc. shall develop and implement policies that will ensure compliance with all applicable Georgia laws and regulations, including maintaining a record of the license numbers or exemption status of any mortgage loan originator, mortgage broker, mortgage lender or mortgage loan processor with whom Southeast Mortgage of Georgia, Inc. conducts business;
- Southeast Mortgage of Georgia, Inc. shall pay fines to the Department in the amount of $22,500;
- Southeast Mortgage of Georgia shall contribute $2,000 to the State Regulatory Registry, LLC to support the Nationwide Mortgage Licensing System; and,
- Reginald C. “Cal” Haupt shall contribute $1,000 to the State Regulatory Registry, LLC to support the Nationwide Mortgage Licensing System.
As of August 1, 2010, all mortgage loan origination in Georgia must be performed by a licensed mortgage loan originator unless performed pursuant to an applicable exemption to licensing. Specifically, it is prohibited by Georgia law for any person to transact business as a mortgage loan originator for compensation or gain, or in the expectation of compensation or gain, to take mortgage loan applications, or offer or negotiate terms of mortgage loans without a mortgage loan originator license or pursuant to an exemption from licensure.
Pursuant to O.C.G.A § 7-1-1013 it is prohibited for any person transacting a mortgage business in or from this state to misrepresent the material facts or make false statements or promises likely to influence, persuade, or induce an applicant for a mortgage loan, a mortgagee, or a mortgagor to take a mortgage loan. Misrepresenting a material factor related to the license status of a mortgage loan originator, including the existence of a mortgage loan originator license, to an applicant for a mortgage loan, a mortgagee, or a mortgagor to take a mortgage loan would be considered a violation of this code section.
Deputy Commissioner for Non-Depository Financial Institutions
Phone: (770) 986-1371
The Department is the state agency that regulates and examines Georgia state-chartered banks, state-chartered credit unions, and state-chartered trust companies. The Department also has responsibility for the supervision, regulation, and examination of Merchant Acquirer Limited Purpose Banks (MALPBs) chartered in Georgia. In addition, the Department has regulatory and/or licensing authority over mortgage brokers, lenders and processors, mortgage loan originators, check cashers, sale of check companies, money transmitters, international banking organizations, and bank holding companies conducting business in Georgia.