Georgia Issues Final Rules on Mortgage Brokers, Lenders, Originators

Recently, the Georgia Department of Banking and Finance issued final revisions of several of its rules relating to branch managers, employee background checks, department notices, record retention, administrative fines, and transaction journals.  The revisions also update the department’s mortgage loan originator rules concerning renewals and temporary authority to operate.

Under the substantively revised rules:

• Branch managers are no longer required to submit fingerprints to the department as part of their branch manager applications.
• Applicants and licensees are required to have covered employee’s background checks performed by a commercial entity in the business of conducting criminal background checks rather than Georgia Crime Information Center.  Rather than completing the background check for new applicants within 90 days of hire, the background check must be completed prior to the issuance of a license, and for current licensees the check must be completed prior to the initial date of hire of the covered employee.  If an employee becomes a covered employee based on changes in job responsibilities, a background check must be completed prior to the change.
• Notices sent by the department will first be sent to the recipient’s email of record on file with the NMLS. If the department does not receive an affirmative response from the intended recipient within five business days, notice will be sent to the recipient’s principal place of business.
• All books, records, and accounts required under department Rule 80-11-2-.02(1)(n) (relating to employee files) must be maintained for a period of five years following the employee’s termination date.
• Failure to obtain a background check on covered employees prior to the initial date of hire, retention, or transition of an existing employee to a covered employee may result in a fine of $1,000 per occurrence.