Ga. Comp. R. & Regs. R. 80-11-1-.01 - Disclosure Requirements
(1)
The disclosures and all other provisions of this Rule only apply to persons
licensed or required to be licensed under Article 13 of Chapter 1 of Title 7 of
the Official Code of Georgia Annotated.
(2) Every mortgage lender or mortgage broker
shall make the following disclosures in writing to applicants for residential
mortgage loans:
(a) within three business days
of receipt of the application but no later than seven business days before
settlement or closing of the loan, a Loan Estimate, as required by federal law,
including but not limited to 12 CFR §
1026.19 and
12 CFR §
1026.37;
(b) no later than three business days before
settlement or closing of the loan, a Closing Disclosure, as required by federal
law, including but not limited to
12 CFR §
1026.19 and
12 CFR §
1026.38;
(c) prior to the acceptance of a fee,
including, but not limited to, an application fee, credit report fee, property
appraisal fee, and all other third-party fees, the amount of the fee;
(d) prior to the acceptance of a fee, whether
all or any part of the fee or charge is refundable prior to settlement of the
mortgage loan, and the terms and conditions for obtaining a refund if all or
any part of the fee or charge is refundable;
(e) prior to the acceptance of any fees, the
specific services which will be provided or performed for the application fee;
and
(f) in cases where the fees are
being accepted by a mortgage lender or mortgage broker that such lender or
broker cannot guarantee approval of the loan application or acceptance into a
particular loan program.
(3) Mortgage lenders or mortgage brokers
shall provide applicants for a home equity line of credit, a residential
mortgage loan not secured by real property, such as a mobile home, or a
residential mortgage loan related to a reverse mortgage, all disclosures
required by federal law instead of the specific disclosures set forth in
paragraph (2)(a) and (b).
(4)
(a) For purposes of this Rule, the term
"settlement" or "closing" means the process of executing legally binding
documents regarding a lien on residential property.
(b) For purposes of this Rule, the term
"business day" has the same definition as set forth in
12 CFR §
1026.2.
(c) For purposes of paragraph (2) of this
Rule, "application fee" means any fee advanced prior to settlement by the
applicant to the mortgage broker or mortgage lender in connection with an
application for a mortgage loan, including any charge for soliciting,
processing, placing or negotiating a mortgage loan. The term does not include
payments to be remitted to third party service providers, such as appraisal
fees or fees for credit reports.
(5) Some or all of the disclosures required
by paragraphs (2), (3), (7), (8), and (9) of this Rule may appear on forms used
to comply with otherwise applicable state or federal laws, including but not
limited to 12 CFR §
1026.37 and
12 CFR §
1026.38.
(6) The disclosures required in paragraphs
(2), (3), (9), and (11) of this Rule shall be acknowledged in writing by the
applicant and a copy of the acknowledgment maintained by the mortgage lender or
mortgage broker required to make the disclosure, and a copy of the
acknowledgment shall be given to the applicant. In instances of mail
applications, the disclosures required by paragraphs (2), (3), (9), and (11)
must be included in the mail application package with a request that a signed
acknowledgment form be returned to the mortgage broker or lender required to
make the disclosure. A copy of this request shall be kept by the mortgage
broker or mortgage lender. In instances of applications taken by telephone, the
disclosures required by paragraphs (2), (3), and (9) must be mailed or
delivered to the applicant with a request that a signed acknowledgment form be
returned to the mortgage broker or lender required to make the disclosure. A
copy of this request shall be kept by the mortgage broker or mortgage
lender.
(7) To the extent required
by federal law including, but not limited to
12 CFR §
1026.20, a mortgage lender shall provide the
borrower an Escrow Closing Notice no later than three business days before the
borrower's escrow account is cancelled.
(8) In the event that the residential
mortgage loan is transferred, the transferee mortgage lender shall provide the
borrower with a Mortgage Transfer Disclosure on or before the thirtieth
calendar day following the date of the transfer, to the extent required by
federal law including, but not limited to,
12 CFR §
1026.39.
(9) Foreclosure Disclosure.
(a) Every mortgage lender, and every mortgage
broker who closes mortgage loans in the broker's own name with funds provided
by others and which loans are assigned within 24 hours of the funding of the
loan to the mortgage lender providing the funding of such loans (i.e. table
funding), shall disclose in writing to each applicant for a mortgage loan that
failure to meet every condition of the mortgage loan may result in the loss of
the applicant's property through foreclosure. The disclosure shall be made at
or before the time of settlement. The disclosure shall include the following
language in at least ten-point bold-faced type:
O.C.G.A. § 7-1-1014(3) requires that we inform you that if you fail to meet any condition or term of the documents that you sign in connection with obtaining a mortgage loan you may lose the property that serves as collateral for the mortgage loan through foreclosure."
(b) The
applicant shall be required to sign the disclosure and the lender or broker, as
applicable, shall keep a copy of the signed disclosure.
(10) A mortgage lender or mortgage broker may
not use the terms "closing" or "settlement" to refer to a transaction unless
the transaction meets the definition of settlement in paragraph (4) of this
Rule.
(11) Temporary Authority to
Operate:
(a) A mortgage lender or mortgage
broker sponsoring a mortgage loan originator who is unlicensed but operating as
a mortgage loan originator pursuant to
12 U.S.C. §
5117 shall disclose in writing to each
applicant that such mortgage loan originator has temporary authority to
operate. The disclosure shall be made no later than the date the consumer signs
an application or any disclosure, whichever event occurs first, and shall
include the following language in at least ten-point bold-faced type:
"The Georgia Department of Banking and Finance requires that we inform you that our company is licensed but the mortgage loan originator responsible for your loan is not currently licensed by the Georgia Department of Banking and Finance. The mortgage loan originator has applied for a mortgage loan originator license with the Georgia Department of Banking and Finance. Federal law (12 U.S.C. § 5117) authorizes certain mortgage loan originators to operate on a temporary basis in the state of Georgia while their application is pending. The Georgia Department of Banking and Finance may grant or deny the license. Further, the Georgia Department of Banking and Finance may take administrative action against the mortgage loan originator that may prevent such individual from acting as a mortgage loan originator before your loan closes. In such case, our company could still act as your broker or lender."
(b) The applicant
shall be required to sign the disclosure and the lender or broker, as
applicable, shall keep a copy of the signed disclosure.
(c) This disclosure provision shall be
effective April 1, 2020.
Notes
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