Bill Text: GA SB483 | 2009-2010 | Regular Session | Introduced

---

Bill Title: Banking; person who originates mortgage loans for only one depository institution as independent contractor; revise the exemption

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2010-03-11 - Senate Read and Referred [SB483 Detail]

Download: Georgia-2009-SB483-Introduced.html

---

10 LC 34 2540

Senate Bill 483

By: Senators Balfour of the 9th and Hawkins of the 49th

A BILL TO BE ENTITLED
AN ACT

To amend Code Section 7-1-1001 of the Official Code of Georgia Annotated, relating to exemptions for certain persons and entities from licensing as a mortgage loan originator, mortgage broker, or mortgage lender, so as to revise the exemption for a person who originates mortgage loans for only one depository institution as an independent contractor; to provide for related matters; to provide for 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 and entities from licensing as a mortgage loan originator, mortgage broker, or mortgage lender, is amended by revising paragraph (17) of subsection (a) as follows:

"(17)(A) A natural person otherwise required to be licensed as a mortgage lender or mortgage broker, who is under an exclusive written independent contractor agreement with any person entity that is a wholly owned subsidiary of has an exclusive relationship with a depository institution financial holding company or bank holding company, savings bank holding company, or thrift holding company, which subsidiary entity also meets the following requirements, subject to the review and approval of the department:

(i) The subsidiary entity 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; and

(ii) The subsidiary entity 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 shall:

(i) Solicit, process, place, or negotiate a mortgage loan to be made originated only by the licensed subsidiary or its affiliate entity; 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, the term 'financial holding company' means 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, 2010.

SECTION 3.

All laws and parts of laws in conflict with this Act are repealed.