Ga. Comp. R. & Regs. R. 80-11-5-.08 - Bona Fide Nonprofit Corporations

(1) An employee of a nonprofit corporation that the Department has determined is a bona fide nonprofit corporation pursuant to O.C.G.A. § 7-1-1001(a)(18) and this Rule is exempt from the requirement of obtaining a mortgage loan originator license for the period of time that the Department's determination is in place. This exemption from licensure does not apply if the employee originates residential mortgage loans outside the scope of the employee's duties and employment at the bona fide nonprofit corporation.

(2) A nonprofit corporation may request that the Department determine it is a bona fide nonprofit corporation for purposes of O.C.G.A. § 7-1-1001(a)(18). The nonprofit corporation shall submit to the Department a determination request in such form and manner and with such supporting documentation as required to enable the Department to conclude whether the nonprofit corporation satisfies the criteria set forth in O.C.G.A. § 7-1-1001(a)(18) and this Rule.

(3) One of the factors that the Department must consider in determining whether an entity is a bona fide nonprofit corporation is whether it complies with O.C.G.A. § 7-1-1001(a)(18)(vi) and provides loan terms that are favorable to the borrower. The Department may consider the following loan terms when determining whether a loan is made in the best interest of the borrower:

(a) Loan terms that do not charge for the accrual of interest;

(b) Loan terms that charge interest at below market rates;

(c) Loan terms that require a borrower to qualify for the loan by the contribution of sweat equity; or

(d) Loan terms that forgive repayment in whole or in part, whether over a period of time, on a specified date, or subject to ownership or occupancy conditions.

(4) After completing its review of the determination request, the Department will determine whether the nonprofit corporation satisfies the requirements of a bona fide nonprofit corporation.

(5) A nonprofit corporation determined by the Department to be a bona fide nonprofit corporation shall, between December 1 and December 31 of each year, submit a certification that the nonprofit corporation continues to meet the criteria under which the Department issued a determination that the entity is a bona fide nonprofit corporation. In addition to the annual certification, a bona fide nonprofit corporation shall give the Department thirty (30) days written notice prior to any proposed significant change to the entity's mission, policies, practices, or operations to enable the Department to consider whether the entity would still qualify as a bona fide nonprofit corporation.

(6) If the Department determines that a nonprofit corporation no longer satisfies the requirements of O.C.G.A. § 7-1-1001(a)(18), then the Department shall rescind the determination that the entity is a bona fide nonprofit corporation.

(7) In the event a nonprofit corporation no longer satisfies the requirements of O.C.G.A. § 7-1-1001(a)(18), the employees of the nonprofit corporation will no longer be exempt from the mortgage loan originator requirements.

Notes

Ga. Comp. R. & Regs. R. 80-11-5-.08

O.C.G.A. § 7-1-61; 7-1-1012.

Original Rule entitled "Bona Fide Nonprofit Corporations" adopted. F. Jun. 10, 2014; eff. Jun. 30, 2014.