Ga. Comp. R. & Regs. R. 80-11-2-.02 - Minimum Requirements for Books and Records
(1)
Any mortgage broker or lender required to be licensed under Article 13 of
Chapter 1 of Title 7 ("licensee") must maintain the following books, accounts
and records:
(a) Copies of all disclosure
documents required by Rule
80-11-1-.01;
(b) Samples of advertisements as required by
Rule 80-11-1-.02;
(c) Copies of all written complaints by
customers and written records of disposition;
(d) Copies of examination reports prepared by
any agency, division or corporate instrumentality of the United States, the
State of Georgia or any other state, which reports pertain to the mortgage
brokerage and/or lending business of the licensee and are not prohibited from
being disclosed to the Department of Banking and Finance by state or federal
law;
(e) Copies of reports required
to be prepared and/or submitted by the licensee to any agency, division, or
corporate instrumentality of the United States, the State of Georgia or any
other state, which reports pertain to the mortgage brokerage and/or lending
business of the licensee and are not prohibited from being disclosed to the
Department of Banking and Finance by state or federal law;
(f) Copies of all payroll records, including
federal and state withholding tax forms, W-2's, and 1099 forms filed with the
Internal Revenue Service by the licensee, or its agent on behalf of individuals
employed by the licensee or on behalf of individuals acting as independent
contractors in the mortgage brokerage and/or lending business of the
licensee;
(g) A general ledger and
subsidiary records sufficient to produce, when requested by the Department, an
accurate monthly statement of assets and liabilities and a cumulative profit
and loss statement for the current operating year;
(h) All checkbooks, bank statements, deposit
slips and canceled checks which pertain to the mortgage brokerage and/or
lending business of the licensee;
(i) Supporting documentation for all expenses
and fees paid by the mortgage broker on behalf of the customer, which
documentation indicates the amount paid and the date paid;
(j) Copies of all credit report bills
received from all credit reporting agencies for the most recent five year
period;
(k) Documentation to
indicate a consumer had a choice of attorney, if attorneys' fees are intended
to be excluded from a points and fees calculation under the Georgia Fair
Lending Act;
(l) An indication of
whether each loan has points and fees of 5% or more, as calculated under the
Georgia Fair Lending Act;
(m)
Documentation to support the source and purpose for each receipt of monies in
any form in an amount greater than $100 and documentation to identify the
recipient and purpose of each payment of monies in any form in an amount
greater than $100 by the licensee in its mortgage brokerage and/or lending
business in order that the receipts may be reconciled to bank deposits and to
books of the licensee;
(n) Employee
file for each employee. The employee file must contain all documents related to
hiring the employee, including criminal background check, date employment
began, and a print out or screenshot confirming that the Department's public
records were reviewed on NMLS Consumer Access to verify eligibility for
employment with such review taking place prior to the date of hire;
(o) Copies of all submitted mortgage call
reports, including any amended reports, for the previous five (5) years and all
related work papers and supporting documentation that support the accuracy of
the information contained in the mortgage call reports;
(p) Documentation showing that a sale or
other transfer to and purchase or other transfer of closed mortgage loans by an
unlicensed entity who is not otherwise exempt from licensure is for the sole
purpose of securitization of the loans in the secondary market and that the
historical practices and documented intent of the unlicensed entity is to hold
such loans for fourteen (14) days or less and that the loans are serviced by a
person licensed as a mortgage lender or exempt from the licensing requirements
of Article 13 of Chapter 1 of Title 7 as required by O.C.G.A. §
7-1-1001(a)(19).
Examples of such documentation showing the sale or transfer to and purchase or
transfer of mortgage loans was for the sole purpose of securitization of the
loans in the secondary market may include, but are not limited to, a copy of
the mortgage loan purchase agreement, evidence of the securitization into a
secondary market, the dates of purchase and securitization, and a sworn
document executed at or before purchase by an executive officer of the loan
purchaser to the effect that the sole purpose of the loan purchase is
securitization of the loan in the secondary market and the purchaser will not
hold the loan for more than fourteen (14) days or service the loan;
and
(q) Information security
program materials maintained by the licensee in accordance with 16 C.F.R. Part
314, ("the Safeguards Rule") and Rule
80-3-1-.05, including, but not
limited to, any risk assessment and incident response plan.
(r) Documentation showing that a sale or
other transfer to and purchase or other transfer of closed mortgage loans by an
unlicensed entity who is not otherwise exempt from licensure is for the sole
purpose of securitization of the loans or otherwise transferring the loans into
a secondary market, that the unlicensed entity is a trust, that the trustee is
a bank that satisfies the exemption from licensure set forth at O.C.G.A. §
7-1-1001(a)(1),
and that the loans held in the trust are serviced by a person licensed as a
mortgage lender or exempt from the licensing requirements of Article 13 of
Chapter 1 of Title 7 as required by O.C.G.A. §
7-1-1001(a)(20).
Examples of such documentation showing the sale or transfer to and purchase or
transfer of mortgage loans was for the sole purpose of securitization or
transferring the loans into a secondary market may include, but are not limited
to, a copy of the mortgage loan purchase agreement, evidence of the
securitization into a secondary market, the dates of purchase and
securitization, and a sworn document executed at or before purchase by an
executive officer of the loan purchaser to the effect that the sole purpose of
the loan purchase is securitization of the loan or transfer of the loan into
the secondary market.
(2)
Failure to maintain the books, accounts and records required under paragraph
(1) above may result in suspension of the license or other appropriate
administrative action and will subject the licensee to fines in accordance with
regulations prescribed by the Department.
Notes
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