We are delighted to report important changes to the Georgia Residential Mortgage Act to more closely align with other states’ licensing laws. In essence, Georgia has modified its felony employment prohibition applicable to Georgia Residential Mortgage Act licensees so that it will no longer apply to all employees of a licensee.
Upon the Governor’s signature, the prohibition will apply to control persons (as it does now) and only to those other employees who can touch Georgia loans. More particularly, in addition to control persons, the prohibition will apply to “covered employees” who are those “involved in residential mortgage loan related activities for property located in Georgia and includes, but is not limited to, a mortgage loan originator, processor, or underwriter, or other employee who has access to residential mortgage loan origination, processing, or underwriting information.”
We anticipate that the Governor will sign the bill by July 1, and we hope to work with the Department of Banking and Finance to obtain additional details regarding the definition of covered employees. Please contact Loretta Salzano (lsalzano@franzen-salzano.com or 770-248-2881) to learn more.