Licensing Overhaul in Georgia's Residential Mortgage Act (HB 15)
Mortgage companies operating in Georgia should prepare for a sweeping regulatory overhaul under House Bill 15, which significantly amends the state’s Residential Mortgage Act. Set to take effect July 1, 2025, the new law introduces a host of financial, governance, and licensing requirements aimed at strengthening oversight and consumer protections.
Key changes for mortgage lenders and brokers include:
Higher Financial Standards: Mortgage lenders not classified as “covered servicers” must now maintain a minimum net worth of $100,000 and demonstrate $1 million in liquidity, which may include warehouse lines of credit. Covered servicers face even stricter thresholds, aligning with Federal Housing Finance Agency (FHFA) eligibility criteria.
Mandatory Audits and Reporting: All mortgage lenders are required to submit audited annual financial statements and quarterly and annual Mortgage Call Reports via the Nationwide Multistate Licensing System (NMLS). The Department of Banking and Finance may request further documentation depending on the lender’s risk profile.
Written Policies and Procedures: Mortgage lenders and brokers must maintain formal written policies and procedures that address their capital, net worth, and liquidity obligations. These documents must include sustainable, written methodologies for meeting the required standards, and must be available to the Department upon request.
Written Cash Management and Operating Plans: Lenders are also required to implement sound cash management and operating plans scaled to the size and complexity of their business. These plans must ensure ongoing liquidity and must include clear, documented methodologies for maintaining financial stability. Regulators may request access to these materials at any time.
Corporate Governance Requirements: Licensees must establish a board of directors or equivalent governing body responsible for setting governance policies, overseeing internal audits, and ensuring regulatory reporting accuracy.
Risk Management Oversight: Each company must develop and maintain a comprehensive risk management program appropriate to its risk profile. This includes conducting an annual risk management assessment and delivering a formal report to the board of directors, which must be retained and provided to regulators on request.
License Application Enforcement: The Department can now administratively withdraw deficient applications if an applicant fails to submit required information within 30 days of receiving notice.
https://gov.georgia.gov/executive-action/legislation/signed-legislation/2025
