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

Ga. Comp. R. & Regs. R. 80-11-4-.05
O.C.G.A. §§ 7-1-1002, 7-1-1012.
Original Rule entitled "Knowing Purchase, Sale or Transfer of Loan or Loan Application from Unlicensed Entity" adopted. F. June 8, 2000; eff. June 28, 2000. Amended: F. Dec. 18, 2000; eff. Jan. 7, 2001. Amended: F. Aug. 17, 2009; eff. Sept. 6, 2009. Amended: New title, "Knowing Purchase, Sale or Transfer of Loan or Loan Application from Unlicensed Entity, Mortgage Loan Originator Sponsorship Excluded." F. Aug. 2, 2011; eff. Aug. 22, 2011. Amended: F. June 15, 2015; eff. July 5, 2015 Amended: F. June 20, 2016; eff. July 10, 2016. Amended: F. Jan. 8, 2021; eff. Jan. 28, 2021. Amended: F. July 7, 2022; eff. July 27, 2022. Amended: F. July 12, 2024; eff. Aug. 1, 2024. Note: Correction of typographical error in Rule History, "Amended: F. Aug. 2, 2011; eff. Aug. 22, 2011." corrected to "Amended: New title, "Knowing Purchase, Sale or Transfer of Loan or Loan Application from Unlicensed Entity, Mortgage Loan Originator Sponsorship Excluded." F. Aug. 2, 2011; eff. Aug. 22, 2011.", as originally filed. Effective July 26, 2024.

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