According to a new December 20, 2019 Rule that will be codified as Ga. Comp. R. & Regs. 80-11-1.-01(11), the Georgia Department of Banking and Finance instructs that when a mortgage lender or mortgage broker sponsoring a mortgage loan originator who is unlicensed but operating as a mortgage originator pursuant to 12 USC § 5117, the unlicensed mortgage originator is required to disclose the following in ten-point bold font:
“The Georgia Department of Banking and Finance requires that we inform you that our company is licensed but the mortgage loan originator responsible for your loan is not currently licensed by the Georgia Department of Banking and Finance. The mortgage loan originator has applied for a mortgage loan originator license with the Georgia Department of Banking and Finance. Federal law (12 U.S.C. § 5117) authorizes certain mortgage loan originators to operate on a temporary basis in the state of Georgia while their application is pending. The Georgia Department of Banking and Finance may grant or deny the license. Further, the Georgia Department of Banking and Finance may take administrative action against the mortgage loan originator that may prevent such individual from acting as a mortgage loan originator before your loan closes. In such case, our company could still act as your broker or lender.”
This disclosure is required to be given to the borrower(s) at the time they sign an application, or any other disclosure, whichever comes first. Accordingly, we have created a new GA Loan Originator License Disclosure (Cx23616), which will print in Initial disclosures when new field “LO Has Temporary Authority to Operate In Georgia” (FI 137246) = Yes.
Additionally, we are enhancing our copy of the GA Acknowledgment of Receipt (Cx19978) to use this same new field “LO Has Temporary Authority to Operate In Georgia” to trigger a final bullet point that references the new disclosure, which the borrower will need to acknowledge receipt of:
- A “Georgia Loan Originator License Disclosure”, provided pursuant to Ga. Comp. R. & Regs. 80-11-1-.01(11).
These changes will be in effect on January 1, 2020. If you have any questions or concerns about these changes, please contact Client Support at 1.800.467.3584.
Update: While most of the provisions of the new rule take effect on January 9, 2020, the new disclosure provisions under Ga. Comp. R. & Regs. 80-11-1.01(11) will not take effect until April 1, 2020, per Ibid. 80-11-1.01(11)(c). Clients who do not wish to use Cx23616 prior to this effective date can prevent it from printing (and from being referenced in Cx19978) by setting new Field 137246 to “No”.
DR 306843