Atlanta, Georgia — On February 1, 2017, the Georgia Department of Banking and Finance (the “Department”) entered into a Consent Order with Mortgage South Lenders, Inc., Nationwide Multistate Licensing System & Registry (the “NMLS”) #166775, of Georgia, and Kathryn Leake, NMLS #167307, of Georgia, to resolve allegations pertaining to violations of the Georgia Residential Mortgage Act (the “GRMA”), namely, making false statements likely to influence, persuade, or induce a mortgagee to take a mortgage loan or pursued a course of misrepresentation by use of fraudulent or unauthorized documents in violation of O.C.G.A. § 7-1-1013(1), (2), and (6).
The terms of the Consent Order include the following:
- The mortgage lender’s license of Mortgage South Lenders, Inc. will be deemed surrendered;
- The mortgage loan originator’s license of Kathryn Leake will be deemed surrendered;
- For a period of five (5) years, Kathryn Leake shall be prohibited from:
- Applying for a Georgia mortgage loan originator’s license, a Georgia mortgage broker’s license, and/or a Georgia mortgage lender’s license, either in her individual capacity or as the owner or officer of an entity; and
- Directing the affairs of a Georgia mortgage broker or a Georgia mortgage lender or acting as a director, officer, partner, equitable owner, branch manager, or any other equivalent role for a Georgia mortgage broker or a Georgia mortgage lender.
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.