annual report - Department of Banking and Finance

The Legal and Consumer Affairs Division is responsible for providing legal
advice and legislative drafting support for the Commissioner and staff. Major
2008 Legislative highlights included:
• In 2008, the Department did not sponsor a “Housekeeping Bill” (which
traditionally provides statutory clarifications). Instead during the 2008
legislative session the Department focused its attention on a bill to amend
Title 7, Article 13, Licensing of Mortgage Lenders and Mortgage Brokers, to
permit Georgia licensed mortgage lenders and mortgage brokers to readily
convert to a uniform nationwide mortgage licensing system pursuant to a
multi‐state uniform mortgage licensing project spearheaded by industry
representatives, the Conference of State Bank Supervisors (CSBS), and the
American Association of Residential Mortgage Regulators (AARMR).
The provision which can be found at O.C.G.A. §7‐1‐1003.5 allows participation in a single source
depository of multi‐state mortgage lender and mortgage broker information which will provide the
Department with a much broader spectrum of information with which to assess an applicant’s
qualifications for licensure, as well as provide access to disciplinary actions across state lines which
should further advance the Department’s focus on regulating the industry and fighting mortgage fraud.
• Department Rules were updated in 2008, via two separate rulemaking processes, as provided for by the
State Administrative Practices Act, after review and consultation with interested parties and members
of the industry. The Department welcomes comments from the public or from the industry throughout
the year regarding amendments or clarifications to Department Rules that will enhance the regulatory
oversight and enforcement of its regulated entities.
Highlights of 2008 rulemaking:
LEGISLATIVE HIGHLIGHTS FOR 2008
JUDY NEWBERRY
Deputy Commissioner for Legal
and Consumer Affairs
• Changes were made to various Mortgage Rules In order to accommodate participation in the
Nationwide Mortgage Licensing System (NMLS) and to facilitate the transition of mortgage brokers and
mortgage lenders to the NMLS.
• A provision was added in the Mortgage Rules to require the maintenance of certain information relative
to employees, including date of hire, criminal background check, and date the Department website was
reviewed to verify eligibility for employment. What constitutes payroll records was clarified and a
requirement was added that copies of such records must be maintained by a licensee or registrant for
employees or contractors even if the filing of these forms with the Internal Revenue Service was done by
an agent.
2008 Annual Report Page 28