Rule 80-11-4-.07. Loan Processors as Brokers

Rule 80-11-4-.07. Loan Processors as Brokers

1. (1) Mortgage brokers include persons who directly or indirectly solicit, process, place or negotiate or offer mortgage loans for others. A loan processor is a mortgage broker and will require a mortgage broker license to process loans on Georgia real property that meet the definition of "mortgage loan" in O.C.G.A. § 7-1-1000(21).
2. (2) A loan processor employed as a W-2 employee of a Georgia Residential Mortgage Act licensee who meets all of the qualifications for exemption under O.C.G.A. § 7-1-1001 does not require a license. A loan processor who works as an independent contractor or who owns or controls a company that does loan processing is required to have a license.

3. (3) Generally, to process a loan means to collect and/or verify from a borrower or other person, information that is necessary to underwrite or to submit for underwriting, a mortgage loan application package. Activities including but not limited to the following may qualify as loan processing:

   1. (a) Reviewing, and processing real estate loan applications.
   2. (b) Ordering, obtaining and evaluating credit reports, real estate appraisals, flood certifications, location surveys, termite inspections, well/septic inspections, surveys, etc.
   3. (c) Ordering, obtaining, and evaluating real property ownership information, including a title insurance policy insuring lender's valid lien position. Title insurance companies that handle only title insurance for a particular loan are not loan processors.
   4. (d) Communicating with applicants as necessary to obtain additional information needed to process a loan.
   5. (e) Obtaining verifications of income, employment, address, etc. as requested by a broker, lender or mortgage loan originator.
   6. (f) Performing escrow account analyses; taking steps required to establish escrow accounts.
   7. (g) Providing certain real estate loan disclosures on behalf of lender.
   8. (h) Compiling and transmitting completed real estate loan application packages to lenders.
   9. (i) Maintaining, collecting, and/or reporting any data necessary to comply with applicable statutory and regulatory requirements.
4. (4) Persons who are otherwise exempt from licensing in O.C.G.A. § 7-1-1001, so long as they provide only the services contemplated in their exemption, will not be considered loan processors.

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

History. Original Rule entitled "Loan Processors as Brokers" adopted. F. July 28, 2003; eff. August 17, 2003.

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

Amended: F. Nov. 2, 2010; eff. Nov. 22, 2010.

Amended: F. Nov. 7, 2013; eff. Nov. 27, 2013.