Georgia Department of Banking and Finance Enters into a Consent Order with Academy Mortgage Corporation and its owners, Adam Michael Kessler and John Duane Shaw

November 8, 2011


Atlanta, Georgia - On November 8, 2011, the Georgia Department of Banking and Finance (“Department”) entered into a Consent Order with Academy Mortgage Corporation (“Academy Mortgage”), Georgia Mortgage Lender License Number 20505 and Nationwide Mortgage Licensing System and Registry (“NMLSR”) Number 3113, located at 1218 East 7800 South, Sandy, Utah 84094; and its owners, Adam Michael Kessler and John Duane Shaw, to resolve allegations pertaining to violations of the Georgia Residential Mortgage Act.

The Consent Order includes the following terms:

  • Academy Mortgage shall submit to the Department proposed written policies and procedures for the operation of its Georgia offices pertaining to the hiring of employees, the identification of positions for which no license is required and the duties attendant thereto, and the terms and conditions of employment of unlicensed persons.
     
  • Within a specified timeframe, Academy Mortgage shall accept the resignation of the branch manager currently approved for its Atlanta office or otherwise replace her in this position. Academy Mortgage shall submit to the Department for its approval within a designated timeframe a complete application of a qualified individual designated to serve as the new branch manager for this location.
     
  • Academy Mortgage shall submit a written plan to the Department detailing how the new Georgia branch manager for its Atlanta location will carry out the supervision of employees to ensure that only licensed individuals serve as mortgage loan originators.
  • Academy Mortgage shall provide the Department with written confirmation that none of its unlicensed employees is soliciting Georgia residential mortgage loans in person, through Academy Mortgage’s commercial website, or through other forms of advertisement.
     
  • Academy Mortgage shall ensure that each person it employs to engage in Georgia mortgage loan originator activities holds a current, valid license issued by the Department.
     
  • Academy Mortgage shall not permit its employees to sign any Georgia residential mortgage loan documents to be provided to lenders or borrowers unless that person is a mortgage loan originator licensed by the Department executing them in his or her own name.
     
  • Academy Mortgage shall report in writing to the Department any discovery of a prohibited act; the discharge of any employee for dishonest, fraudulent or unlawful acts; and any administrative, civil, or criminal action initiated against it or its control persons.
     
  • Academy Mortgage shall pay fines totaling $103,000 to the Department.
     
  • Academy Mortgage shall contribute $5,000.00 to the State Regulatory Registry, LLC, a wholly-owned subsidiary of the Conference of State Bank Supervisors, to support the NMLSR. 

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

 

The Department has regulatory and/or licensing authority over state-chartered banks, credit unions, trust companies, mortgage brokers, mortgage lenders, mortgage processors, mortgage loan originators, check  cashers, sale of check companies, money transmitters, international banking organizations, and bank holding companies conducting business in Georgia.  Visit us on the Web at: http://dbf.georgia.gov/

 

Related Files: 
PDF icon Consent Order (504.97 KB)