Rule 80-11-4-.03. Licensing Requirements; Exemptions

Rule 80-11-4-.03. Licensing Requirements; Exemptions

1. (1) The Department will take appropriate action against all persons found to be improperly engaging in mortgage brokerage or lending activities without a license or valid exemption. In accordance with O.C.G.A. § 7-1-1018(a), if proper evidence is provided to the Department within thirty (30) days of the date the Order is issued that shows the person had the proper license or was acting pursuant to a valid exemption at the time noted in the Order, the Order shall be rescinded by the Department.

2. (2) The exemption from licensing provided pursuant to O.C.G.A. § 7-1-1001(a)(14) to an employee of a licensee or exemptee applies only to natural persons who meet all of the following criteria:

   1. (a) An employee must be employed by just one licensee or exemptee and work exclusively for that person;
   2. (b) An employee may not solicit, process, or place loans for anyone else while claiming the exemption;
   3. (c) An employee's procedures and activities must be supervised by the licensee or exemptee on a daily basis, and the licensee or exemptee is responsible for the actions of such employees. This requirement is intended to make it clear that employers control and are accountable for the actions of their employees; and
   4. (d) An employee may not be paid or compensated for performance of mortgage activity as an independent contractor or on a 1099 basis, except as specifically provided for in O.C.G.A. § 7-1-1001(a)(17).

Authority: O.C.G.A. §§ 7-1-61, 7-1-1003.2, 7-1-1012.

History. Original Rule entitled "Licensing Requirements; Employees Exemption" adopted. F. June 8, 2000; eff. June 28, 2000.

Amended: Rule retitled "Licensing Requirements; Employee Exemption; Term for Bond" adopted. F. Oct. 22, 2001; eff. Nov. 11, 2001.

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

Repealed: New Rule entitled "Licensing Requirements; Registrants; Exemptions; Term for Bond" adopted. F. Sept. 1, 2004; eff. Sept. 21, 2004.

Repealed: New Rule entitled "Licensing Requirements; Registrants; Exemptions; Term for Bond" adopted. F. Aug. 22, 2006; eff. Sept. 11, 2006.

Amended: F. Aug. 15, 2007; eff. Sept. 4, 2007.

Amended: F. Aug. 17, 2009; eff. Sept. 6, 2009.

Amended: F. Jan. 8, 2021; eff. Jan. 28, 2021.

Amended: New title, "Licensing Requirements; Registrants; Exemptions." F. July 7, 2022; eff. July 27, 2022.

Amended: New title, "Licensing Requirements; Exemptions." F. July 12, 2024; eff. Aug. 1, 2024.