Georgia mortgage brokers and lenders will need to increase their surety bond amount with the passage of HB 143. Though most sections of the bill took effect on July 1, 2017, Section 24, which mandates the bond increase, will take effect on December 31, 2017.
Mortgage brokers in Georgia is any person who solicits, processes, places, or negotiates mortgage loans. Mortgage lenders make, originate, underwrite, hold, or purchase mortgage loans or service mortgage loans. Mortgage loan originators take mortgage loan applications or negotiate the terms of a residential mortgage loan.
HB 143 will increase the surety bond for mortgage brokers to $150,000, an amount that the Department of Banking and Finance (DBF) can increase. Previously, mortgage brokers’ minimum bond amount was set at $50,000. Similarly, mortgage lenders will need a surety bond that is $250,000 or more if mandated by the DBF, an increase from the current $150,000 bond minimum.
In addition to the bond increases, HB 143 allows licensees and surety companies to cancel surety bonds for mortgage brokers, lenders, and originators electronically through the National Mortgage Licensing System and Registry (NMLSR), also called the Nationwide Multistate Licensing System (NMLS). The DBF requires 30 days’ notice before canceling the bond. HB 143 made the same changes to money transmitters’ surety bond laws and they can now be canceled electronically.
Georgia mortgage brokers and lenders apply online through the NMLS. Licenses must be renewed annually between November 1 and December 31, regardless of when the license was acquired. There are a few nonrefundable fees associated with applying for a mortgage broker license:
- $750 fee including NMLS processing fee
- $15 fee for credit report if one has not been authorized through NMLS in the past 30 days for each control person
- $36.25 for each criminal background check
Review the license application checklist to make sure all information is included with your application. Mortgage lenders must also pay the fees for credit reports and background checks, but their license costs, including the NMLS processing fee, is $1,250. The mortgage lender application checklist is also available through NMLS and should be reviewed before submitting the application.
Mortgage loan originators are also licensed through the NMLS, and must meet certain prerequisites and submit additional information to the DBF. Their license application requires the same credit report and background check fees as brokers and lenders, but their license costs are $130.
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