06 LC 34
0715S
The
Senate Banking and Financial Institutions Committee offered the following
substitute to SB 505:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 7-1-1001 of the Official Code of Georgia Annotated, relating
to exemptions for certain persons from the requirement of obtaining a mortgage
broker or mortgage lender license, so as to exempt certain exclusive independent
contractors of licensed mortgage brokers or lenders; to provide for related
matters; to provide an effective date; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 7-1-1001 of the Official Code of Georgia Annotated, relating to
exemptions for certain persons from the requirement of obtaining a mortgage
broker or mortgage lender license, is amended by striking the word "or" at the
end of paragraph (12); by striking the symbol "." and inserting in lieu thereof
the symbol and word "; or" at the end of paragraph (13); and by adding a new
paragraph (14) to read as follows:
"(14)(A)
A natural person otherwise required to be licensed, who is under an exclusive
written independent contractor agreement with any person that is a wholly owned
subsidiary of a financial holding company or bank holding company, savings bank
holding company, or thrift holding company, which subsidiary also meets the
following requirements, subject to the review and approval of the
department:
(i)
The subsidiary has provided an undertaking of accountability supported by a
surety bond equal to the lesser of $1 million or $50,000.00 per exempt person,
to cover all of its persons exempted by this paragraph, that includes full and
direct financial responsibility for the mortgage broker activities of each such
exempted person, and also provides for the education of the exempt persons, the
handling of consumer complaints related to the exempt persons, and the
supervision of the mortgage broker activities of the exempt
persons;
(ii)
The subsidiary has applied for and been granted a mortgage broker or mortgage
lender license, consistent with the provisions of this article and renewable
annually; and
(iii)
The subsidiary has paid applicable fees for this license, which license fees
shall be the lesser of one-half of the sum of the cost of the individual
licenses or $100,000.00.
(B)
To maintain the exemption, a natural person must:
(i)
Solicit, process, place, or negotiate a mortgage loan to be made only by the
licensed subsidiary or its affiliate; and
(ii)
Be at all times in compliance with the provisions and prohibitions of Code
Section 7-1-1013 and the provisions and prohibitions applicable to employees
under Code Section 7-1-1004.
(C)
For purposes of this paragraph, 'financial holding company' shall mean a
financial holding company as defined in the Bank Holding Company Act of 1956, as
amended.
(D)
The commissioner shall provide by rule or regulation for the implementation of
this
paragraph."
SECTION
2.
This
Act shall become effective on July 1, 2006.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.