Department Orders Lenders Purchasing and Holding Loans Without a License to Cease and Desist

September 15, 2016

Atlanta, Georgia — On September 15, 2016, nine (9) Orders to Cease and Desist issued by the Georgia Department of Banking and Finance (“Department”) became final. The orders were issued against the following companies:

  1. HG Recovery Fund I, LLC, located at 30 E Adams St, Ste 200, Chicago, IL 60603;
  2. Navgen Capital Fund I, LLC, located at 35 Journal Square, Suite 1101, Jersey City, NJ 07306;
  3. Odell Roy Inc., located at 4656 Augusta Hwy, Gilbert, SC 29054;
  4. Pacific Northwest Investments, LLC, located at PO Box 2658, Albany, OR 97321;
  5. Pontus Investment Portfolio III, LLC, located at 875 Prospect Street, Suite 303, La Jolla, CA 92037;
  6. Scarlett Capital Fund I, LLC, located at 2392 Culpepper Lane, Knights Landing, CA 95645;
  7. Select Home Solutions, LLC, located at 7526 Key Deer Ct, Fort Myers, FL 33966;
  8. SMR I, LLC, located at 116 Canterbury Dr, Wallingford, PA 19086; and
  9. Stanford Investments, LLC, located at P.O. Box 9018, College Station, TX 77842.

The Orders to Cease and Desist were issued by the Department after it obtained evidence that the above-listed companies engaged in residential mortgage lending activities without a license or under an applicable exemption in violation of O.C.G.A. § 7-1-1002.

Georgia law prohibits any person from directly or indirectly holding and/or purchasing mortgage loans without a mortgage license or pursuant to an exemption from licensure, including O.C.G.A. § 7-1-1001(15).

It is also prohibited for any person to knowingly purchase, sell, or transfer a mortgage loan or loan application from or to an entity that is not licensed or exempt from licensing or registration provisions.

Contact
Rod Carnes
Deputy Commissioner for Non-Depository Financial Institutions
Phone: (770) 986-1371
E-mail: rodc@dbf.state.ga.us

 

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, sellers of payment instruments, money transmitters, international banking organizations, and bank holding companies conducting business in Georgia.

 

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