Georgia Amends Regulations for Residential Mortgage Brokers and Lenders
Georgia recently issued a final rule which, among other things, amended certain disclosure and employee background check requirements applicable to residential mortgage brokers and lenders.
The final rule, in relevant part:
- Provides that employee files must contain documentation indicating that, prior to employment, both the Georgia Department of Banking and Finance’s website as well as NMLS Consumer Access were searched for public records to determine whether an applicant was eligible for employment;
- Provides that any licensee that fails to examine the Department’s website and NMLS Consumer Access prior to employment in order to confirm employment eligibility is subject to a fine of $1,000 for each violation;
- Removes the requirement that a licensee obtain prior approval before a change in executive officers; and
- Eliminates language that previously permitted a mortgage lender to avoid providing a Georgia-specific mortgage foreclosure statement by complying with a substantially similar disclosure as required by federal law.
The changes described above became effective on July 29, 2019.
