Georgia Department of Banking and Finance Adopts 2018 Final Rulemaking
The Georgia Department of Banking and Finance has adopted new provisions pertaining to mortgage lenders, brokers, and servicers including updates to its mortgage servicing standards, and provides new provisions for mortgage lenders, brokers and servicers that meet the definition of “loan or finance company” under the Bank Secrecy Act.
Chapter 80-11-1-.06 requires that any person subject to the licensing requirements of the Georgia Residential Mortgage Act that meets the definition of a “loan or finance company” under the Currency and Foreign Transaction Reporting Act of 1970 must develop a written anti-money laundering program and comply with all filing, record keeping, currency transaction, and suspicious activity reporting as required by the Bank Secrecy Act.
Chapter 80-11-6 updates mortgage servicer standards relating to loss mitigation activity after a foreclosure process has commenced. Under the new rules a mortgage servicer shall not conduct a foreclosure sale before evaluating a borrower’s complete loss mitigation application if the application is received after a foreclosure process has been started and more than 37 days prior to the foreclosure sale. Additionally, if a servicer is not required to evaluate the loss mitigation application, then the servicer must notify the borrower that the application was not timely received. The updated rule also makes exempt the requirement for a loss mitigation appeal process if the loss mitigation application was received less than 90 days prior to a foreclosure sale.
Chapter 80-11-6 also updates provisions relating to notices of service transfers. Under the new rules the notice of service transfer requirement does not apply if, at the time of settlement, the servicer provides to the borrower written initial disclosures of the transferee that comply with the provisions of this chapter.
These provisions are effective July 17, 2018 and the full text of the update may be found at: https://dbf.georgia.gov/sites/dbf.georgia.gov/files/related_files/document/DBF-Final-Rulemaking_6-27-2018.pdf
Adam Faria, JD, is a regulatory compliance consultant with CLA. He is a graduate of Northeastern University and earned his juris doctor at Suffolk University Law School. He is admitted to the bar in Massachusetts and New Hampshire.
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