Atlanta, Georgia – On June 20, 2024, an Order to Cease and Desist (“Order”) issued by the Georgia Department of Banking and Finance (“Department”) to Derek Coffey (“Mr. Coffey”) became final. 

The Order was issued by the Department after it obtained evidence that Derek Coffey, while employed by a licensed mortgage lender, violated O.C.G.A. § 7-1-1013(2) by misrepresenting or concealing or causing another to misrepresent or conceal material factors, terms, or conditions of a transaction to which a mortgage lender or broker is a party, pertinent to an applicant or application for a mortgage loan.

The Order further stated that Mr. Coffey violated Department Rule 80-11-5-.07(1) and (2) by failing to update his response to termination disclosure question (Q) on his MU4 form with an explanation, which asked Mr. Coffey whether he had ever voluntarily resigned, been discharged, or permitted to resign after allegations were made that accused him of: (1) violating statute(s), regulation(s), rule(s), or industry standards of conduct, or (2) fraud, dishonesty, theft, or the wrongful taking of property. In addition, the Order stated that Mr. Coffey violated O.C.G.A. § 7-1-1004(e)(3) by failing to demonstrate financial responsibility, character, and general fitness such as to command the confidence of the community and to warrant a determination that he will operate honestly, fairly, and efficiently with the purposes of the Georgia Residential Mortgage Act, O.C.G.A. § 7-1-1000 et seq. 

Pursuant to O.C.G.A. § 7-1-1004, the Department may revoke the license of a mortgage broker or mortgage lender that employs an individual against whom a final Order to Cease and Desist has been issued within the preceding five (5) years if the Order resulted from a violation of O.C.G.A. § 7-1-1013.

 

Contact:

Oscar B. Fears, III

Senior Deputy Commissioner

Phone: (770) 986-1650

E-mail: [email protected]

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