Georgia Clarifies Definition of Mortgage Broker
The Official Code of Georgia defines a mortgage broker as:
“Any person who directly or indirectly solicits; processes, places, or negotiates mortgage loans for others; offers to solicit, process, place, or negotiate mortgage loans for others; or closes mortgage loans which be in the mortgage broker’s own name with funds provided by others, and which loans are assigned to the mortgage lenders providing the funding of such loans within 24 hours of the funding.”
The definition has been revised by House Bill 212 to clarify exclusion of those retailers or retail brokers of manufactured or mobile homes or a residential industrial buildings where their role is limited to compiling and transmitting applications to mortgage lenders and do not receive a fee from any person for assisting the applicant. Employees of those retailers or retail brokers are similarly excluded from the definition of mortgage broker where acting in the scope of their employment duties among other requirements.
View House Bill 212 in its entirety:
http://www.legis.ga.gov/Legislation/en-US/display/20192020/HB/212
Margaret Wright, JD, is regulatory compliance director with CLA. She is a graduate of Stonehill College and earned her juris doctor at Suffolk University Law School. She is admitted to the Massachusetts Bar.
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