The Georgia legislature recently amended provisions of its laws related to mortgage lenders and mortgage brokers, effective July 1, 2019.

GEORGIA HOUSE BILL 185

A licensed mortgage lender is authorized to engage in all activities that are authorized for a mortgage broker and, as a result, is not required to obtain a mortgage broker license.

The Department of Banking and Finance (“department”) has the authority to promulgate rules and regulations to implement the provisions of federal legislation related to the temporary authority of mortgage loan originators.

A mortgage loan originator license will become inactive in the event that the mortgage loan originator is no longer sponsored by a mortgage lender or mortgage broker that is licensed. A mortgage loan originator may not act as a mortgage loan originator in Georgia while the license is inactive. A mortgage loan originator license will remain in inactive status until the license expires, the licensee surrenders the license, the license is revoked or suspended, or the licensee obtains sponsorship.

The department must investigate and examine the affairs, business, premises and records of any mortgage broker or mortgage lender required to be licensed or registered.  The department may conduct such investigations and examinations as often as it deems necessary but must conduct them at least once every 60 months (previously required every 24 months). 

GEORGIA HOUSE BILL 212

The provisions related to licensing of mortgage lenders and mortgage brokers has been amended to exempt retailers and retail brokers of manufactured homes, mobile homes, or residential industrialized buildings from the requirement to obtain a license as a mortgage broker under certain circumstances.

The amendments specify that “mortgage broker” does not include a retailer or retail broker of a manufactured or mobile home or a residential industrialized building that:

• Limits its residential mortgage loan activities to compiling and transmitting residential mortgage loan applications and supporting documentation to mortgage lenders who are licensed or exempt from licensing or communicating with residential mortgage loan applicants as necessary to obtain additional documents to complete the loan application; and
• Does not receive any payment or fee from any person for assisting the applicant with applying for or obtaining financing to purchase the manufactured home, mobile home, or residential industrialized building.

The term also does not include employees of the above if he or she is acting within the scope of employment, is employed by only one such retailer or retail broker, has not been issued a related cease and desist order in the past five years, and has not had a mortgage lender, mortgage broker, or mortgage loan originator license revoked within the past five years.