Rod Carnes, Deputy Commissioner for Non-Depository Institutions for the GA Department of Banking and Finance, addressed the attendees at the GA Real Estate Fraud Prevention and Awareness Coalition’s (GREFPAC) Annual Conference on March 6. Mr. Carnes reported that the Department currently regulates approximately 400 lenders, 300 brokers, and 6000 mortgage loan originators. The Department operates with an examination staff of 5. Given these numbers, Mr. Carnes confirmed that the DBF will continue its practice of risk-based targeted exams. The Department’s three greatest areas of concern (affectionately known as the 3 deadly sins), continue to be loan fraud/misrepresentations, unlicensed activity, and employment of felons. One area of concern for unlicensed activity is unlicensed mlo activity including processors who take applications for modifications at loan servicers. Another area of concern for unlicensed activity is third party processors who are not properly licensed as brokers. With regard to felons, Mr. Carnes reminded the audience that Georgia’s law prohibits the employment of felons, regardless of the year of the conviction. It is imperative that licensees run a GCIC background check back to birth for “covered employees” and a similar check for employees who reside outside Georgia. Please contact the firm if we may assist you with compliance with GA’s regulatory requirements.
