Rule 80-11-2-.06. Risk Management Program
Rule 80-11-2-.06. Risk Management Program
The Risk Management Program for mortgage lenders and mortgage brokers required by O.C.G.A. § 7-1-1023 must be scaled to the complexity of the organization, but be sufficiently robust to manage risks in several areas, including, but not limited to:
- (1) Credit risk: The potential that a borrower or counterparty will fail to perform on an obligation;
- (2) Liquidity risk: The potential that the mortgage lender or mortgage broker will be unable to meet its obligations as they come due because of an inability to liquidate assets or obtain adequate funding or that it cannot easily unwind or offset specific exposures;
- (3) Operational risk: The risk resulting from inadequate or failed internal processes, people, and systems or from external events;
- (4) Market risk: The risk to the mortgage lender or mortgage broker's condition resulting from adverse movements in market rates or prices;
- (5) Compliance risk: The risk of regulatory sanctions, fines, penalties, or losses resulting from failure to comply with laws, rules, regulations, or other supervisory requirements applicable to the mortgage lender or mortgage broker; and
- (6) Legal risk: The potential that actions against the mortgage lender or mortgage broker that result in unenforceable contracts, lawsuits, legal sanctions, or adverse judgments can disrupt or otherwise negatively affect the operations or condition of the licensee.
Authority: O.C.G.A. § 7-1-61.
History. Original Rule entitled "Risk Management Program" adopted. F. June 18, 2025; eff. July 8, 2025.