Ga. Comp. R. & Regs. R. 80-11-4-.05 - Knowing Purchase, Sale or Transfer of Loan or Loan Application from Unlicensed Entity, Mortgage Loan Originator Sponsorship Excluded
(1) It is prohibited for any person to
knowingly purchase, sell or transfer a mortgage loan or loan application to or
from an unlicensed mortgage loan originator, mortgage lender or broker, unless
that entity is exempt from licensure or qualified to operate under the
temporary authority provisions of 1
12 U.S.C. §
5117. It is expected that all persons who
purchase, sell, or transfer mortgage loans use reasonable diligence to
determine whether the entities they do business with are licensed or exempt
from licensure. To that end, the Department makes available through NMLS
Consumer Access information as to whether an entity is licensed.
(2) Obtaining a copy of an entity's annual
license shall not be sufficient evidence of a current license since revocation
proceedings occur throughout the year.
(3) Failure by a licensee to exercise
reasonable diligence to determine whether an entity is licensed or exempt from
licensure may result in a fine or other administrative action, including, but
not limited to, license revocation.
(4) The mere act of sponsoring an employee
seeking licensure from the Department as a mortgage loan originator through the
Nationwide Multistate Licensing System and Registry shall not be regarded in
and of itself as engaging in the mortgage business with an unlicensed person as
long as the applicant is not performing for the sponsoring licensee those
regulated activities set forth in O.C.G.A. §
7-1-1000(22)
unless qualified to operate under the temporary authority provisions of
12 U.S.C. §
5117.
Notes
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