Georgia Residential Mortgage
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Georgia Department of Banking & Finance ~ Non -Depository Financial Institutions Division Monthly Summary of Mortgage Activities for the Period Ending June 2018 Inside this Issue: Georgia Residential Mortgage Act (“GRMA”) Per Loan Fees Mortgage 2 Companies and Reporting and Payment Due for Semi-Annual Period 18A Mortgage Branch Applications GRMA Per Loan Fees (“GRMA fees”), the $10.00 per loan fees required by O.C.G.A. § 7 **Jurisdiction -1-1011(b) and Department Rule 80-5-1-.04, are due no later than September Document Upload in NMLS** 4, 2018, for mortgage loans closed during the period January 1, 2018, through June 30, 2018 (Period 18A). Georgia Mortgage 2 Loan Originator GRMA fees are required to be collected and remitted by the collecting agent, which is License the entity “listed as the secured party on a security deed or any other loan document.” Application This requirement exists to ensure that each collecting agent is given proper credit for **Jurisdiction Document Upload remitting the required GRMA fees. in NMLS** The fees along with a fee statement indicating the number of mortgage loans closed by New Company 3 the collecting agent shall be remitted semiannually to the Department through its online Applications— reporting and payment system located at: https://bkgfin.dbf.state.ga.us/GRMAFee.html. Most Frequently Cited Deficiencies As of June 30, 2018, the Department will be using First Data PayPoint® as its payment provider for the payment of GRMA fees submitted to the Department. Payment by Mortgage Call 4 Report Reminder Credit Card and Electronic Check (e-check) are accepted. There is no convenience fee associated with either payment method. Fine Summary 5 Information Notice of Final Rulemaking NDFI Outreach 5 and Upcoming Speaking On Wednesday, June 27, 2018, the Department adopted Final Rules. The Rules were Engagements filed with the Secretary of State on June 27, 2018, and, pursuant to O.C.G.A. § 50-13-6, will be effective on July 17, 2018, which is twenty days (20) following the filing of the Appendices: Rules with the Secretary of State. • Mortgage Company Activity by License Prior to adopting the Rules, the proposed Rules along with a synopsis were distributed Status on May 17, 2018. The Department received two (2) written comments regarding the • Mortgage Loan proposed Rules. The Department fully considered the comments it received and made Originator Activity by substantive revisions to Rules 80-3-1-.01(5) and 80-3-1-.07(1)(p) to revert to the original License Status language in the rule related to posting of licenses. The Department also made revisions to Rule 80-3-1-.07(1)(a), (d), and (f) to align certain references to changes in the proposed Rules. The Department believes that the Rules as adopted encourage safety and soundness, encourage safe and fair mortgage lending, and conform to the law. To view or download the Final Rules, go to Regulations page on the Department’s website (https://dbf.georgia.gov/dbf-regulations) and select the appropriate link for the Final Rules, OR you may access them directly from: https://dbf.georgia.gov/sites/ dbf.georgia.gov/files/related_files/document/DBF-Final-Rulemaking_6-27-2018.pdf. Page 2 June 2018 Mortgage Companies and Mortgage Branch Applications **Jurisdiction Document Upload in NMLS** In the May 2018 Monthly Mortgage Summary, the Department provided notice that it had released new checklists/instructions and revised jurisdictional documents on the NMLS for Mortgage Company and Mortgage Branch applications. It has come to the attention of the Department that some applicants/licensees are uploading jurisdiction documents in NMLS under the wrong Document Type. For example, the Georgia Background Authorization Form has been incorrectly uploaded to the Company Form (MU1) under the Document Type Document Samples, rather than being uploaded correctly under the Document Type State Background Check Authorization in the Document Uploads section of the Individual Form (MU2). The NMLS Checklists and Instructions provide clear direction as to what MU Form and what Document Type should be selected for the uploaded documents. Documents uploaded to the wrong Document Type in NMLS may result in the Department not being properly notified when the required jurisdiction document is uploaded in NMLS. Please visit the NMLS Resource Center for our most current checklists and jurisdictional forms. When making any change to your NMLS record, please consult the appropriate Amendment checklist. Georgia Mortgage Loan Originator License Application **Jurisdiction Document Upload in NMLS** In the April 2018 Monthly Mortgage Summary, the Department provided notice that it had released new checklists/instructions and a new jurisdictional document titled GA Verification of Lawful Presence Affidavit & Consent Instructions and Form. It has come to the attention of the Department that some applicants are uploading the jurisdiction document under the wrong Document Type. Specifically, the document has been uploaded incorrectly to the Verification of Experience type. Applicants should be aware that the Verification of Experience Document Type is not one that the Department receives notification for since it is not a Georgia-required Document Type. As indicated in the revised checklist, applicants should upload (the 2-page form, excluding instructions and privacy rights) in NMLS under the Document Type Legal Name/Status Documentation in the Document Uploads section. Documents uploaded to the wrong Document Type in NMLS may result in the Department not being notified when the required jurisdiction document is uploaded in NMLS. Please visit the NMLS Resource Center for our most current checklists and jurisdictional forms. When making any change to your NMLS record, please consult the appropriate Amendment checklist. COMMONLY USED ACRONYMS CE — Continuing Education MCR — Mortgage Call Report Department — Georgia Department of Banking and MLO — Mortgage Loan Originator Finance NMLS — Nationwide Multistate Licensing System ESB — Electronic Surety Bond O.C.G.A. — Official Code of Georgia Annotated GRMA — Georgia Residential Mortgage Act June 2018 Page 3 New Company Applications—Most Frequently Cited Deficiencies The Department has taken several measures to streamline its application processes, specifically with company applications. Applicants and existing licensees that review the checklists for both the mortgage broker and lender license application, will see that many of the previous requirements have either been removed or they are only required on an as requested basis. These changes have been made in an effort to lessen the complexities involved in obtaining a mortgage company license and to ultimately decrease application processing times. While the newly streamlined requirements create less room for incomplete company applications, the Department consistently comes across a few incomplete or deficient items that can cause delays in the application process. Below is a list of the most frequently tracked deficiencies: 1. The applicant’s name in NMLS does not match business formation documents. 2. The applicant’s name is incorrect on the Electronic Surety Bond (ESB). 3. The applicant’s main address in NMLS does not match Georgia’s Secretary of State’s records. 4. The applicant’s registered agent in NMLS does not match Georgia’s Secretary of State’s records. 5. The applicant fails to disclose all control persons. Company Names In recent months, the Department has been receiving an increasing number of applications where the company’s name is entered incorrectly in NMLS. Errors can range from the name missing a simple comma or period, to entire words being misspelled. To prevent delays in processing applications, the Department asks that applicants review the company’s business formation documents prior to submitting a new license request in NMLS to verify that the name in NMLS matches exactly to the name filed with Georgia’s Secretary of State. The only exception would be if the company has a forced trade name in Georgia. In such situations, the forced trade name would be listed in the Other Trade Names section on the company’s NMLS MU1 and the company’s legal name would need to match exactly to the way it is filed in the company’s home state. Company Name on the ESB A deficiency related to the applicant’s name on the ESB is often placed conjointly with a deficiency for the name being entered incorrectly in NMLS. Since the surety company matches the bond to the name as it is listed in NMLS, not the company’s business formation documents, it is almost guaranteed that the name will be incorrect on the ESB as well. So, not only will the company have to file an amendment to correct the name, they will also have to contact the surety provider to correct the company’s name on the ESB. Being at the mercy of a surety provider, that is also working with numerous other clients, to make a correction to the ESB will often lead to a delay in the disposition of the application. Company Main Address/Physical Location Another major error on applications that can lead to processing delays is the applicant’s main address in NMLS not matching Georgia’s Secretary of State’s records. Increasingly, companies headquartered outside of Georgia (foreign entities) have submitted applications where they list a Georgia address as their principal place of business with Georgia’s Secretary of State, but then in NMLS their main address is listed as the headquarter address located out of state. After investigation, it is often determined that the Georgia address listed with Georgia’s Secretary of State is a proposed Georgia branch location. To provide clarity, the company’s principal address on record with Georgia’s Secretary of State should match the main address on record in NMLS for your company. A branch location requires a separate application in NMLS and does not have to be on record with Georgia’s Secretary of State.