Rule 80-11-2-.05. Audits and Financial Statements

Rule 80-11-2-.05. Audits and Financial Statements

1. (1) The audited or unaudited financial statement for mortgage brokers will be submitted to the Department via NMLS within (90) days of the end of such mortgage brokers' fiscal year. The financial statements shall be prepared in compliance with generally accepted accounting principles.
2. (2) The external audit for mortgage lenders that are not covered servicers will be submitted to the Department via NMLS within ninety (90) days of the end of such mortgage lenders' fiscal year. The external audit shall be performed in compliance with generally accepted accounting principles.

3. (3) The external audit for covered servicers will be submitted to the Department via NMLS within ninety (90) days of the end of the covered servicers' fiscal year. The audit shall include at a minimum:

   1. (a) Annual financial statements including a balance sheet, income statement, and cash flows, including notes and supplemental schedules prepared in accordance with generally accepted accounting principles;
   2. (b) Assessment of the internal control structure;
   3. (c) Computation of net worth for covered servicers;
   4. (d) Validation of mortgage servicing rights valuation and reserve methodology, if applicable;
   5. (e) Verification of adequate fidelity and errors and omissions (E&O) insurance for covered servicers; and
   6. (f) Testing of controls related to risk management activities, including compliance and stress testing, where applicable for covered servicers.

Authority: O.C.G.A. § 7-1-61.

History. Original Rule entitled "Audits" adopted. F. July 12, 1999; eff. August 1, 1999.

Amended: F. June 8, 2000; eff. June 28, 2000.

Amended: F. Oct. 22, 2001; eff. Nov. 11, 2001.

Amended: F. July 28, 2003; eff. Aug. 17, 2003.

Repealed: F. Aug. 15, 2005; eff. Sept. 4, 2005.

Adopted: New Rule entitled "Audits and Financial Statements." F. June 18, 2025; eff. July 8, 2025.