The Georgia Department of Banking and Finance recently revoked the license of Citizens First Mortgage Solutions, but Cynthia Rumph, president and owner of the Snellville, Ga.-based brokerage company, has appealed the cease and desist order issued against her company.
According to the department, who conducted its last audit against Citizens First on April 28, 2009, Rumph violated several regulations including making false statements to lenders and the department, failing to properly maintain a mortgage loan transaction journal and employing individuals who were not registered as a mortgage broker.
The department found three loan files that were processed by brokers (Shedonna Daniel, Eric Ward and Calvin Wheeler) who were listed as employees of Citizens First even though they did not work for the company or have a license within the state.
Pursuant to state law, it is prohibited for any person knowingly to purchase, sell, or transfer a mortgage loan or loan application from or to a mortgage broker or mortgage lender who is not licensed or exempt from licensing or registration provisions.
“Because the documents evidencing the involvement of Daniel, Ward and Wheeler were found at Citizens First's place of business, it is clear that Citizens First did not supervise its employees on a daily basis,” said Stephanie Howels, administrative law judge for the state of Georgia in the final order.
“Furthermore, Citizens First is responsible for the actions of its employees. Thus, even if other individuals actually employed by Citizens First allowed the non-employees to process or broker loans, Citizens First is responsible. Given the clear lack of supervision and oversight of its business, the Department's order revoking Citizens First's license is proper.”
But Rumph told National Mortgage News in an interview that all of these matters found in the department's audit happened in 2007 and 2009. According to Rumph, Wheeler processed a loan application in 2009 under the company's name a week before starting work at Citizens First. Therefore, Rumph said the file was never reviewed because she never received it because he was not a company employee.
In Ward's case, which happened in 2007, Rumph said a loan processor at Citizens First approved the verification of employment of her son-in-law to work with the company even though he did business at home. Rumph said the processors were fired immediately because she knew this did not comply with state regulations.
“I've been in the business for 15 years and this is the first time that I've ever had a cease and desist order issued against me,” Rumph told this publication. “I think this order is so unfair because two of those instances happened four years ago and were out of my control, but the department still holds me accountable now for those cases which have already been taken care of. I have nothing to hide and am hoping to get my chance in court to tell a judge exactly what these individuals did. I am hoping to get back into business as soon as possible in order to continue helping borrowers who rely upon obtaining loans from Citizens First.”
