House Bill 921

Chair's Name: James Mills

Committee: Banks & Banking

House Sponsor: James Mills

HB 921 allows the Department of Banking and Finance to participate in a nation-wide residential mortgage licensing system for the purposes of sharing licensing information with other states. The Department will still retain full and exclusive authority to grant, renew or revoke licenses within the State of Georgia.

This bill comes to the House Floor under the Open Rule.

Chairman Mills’ opinion of this legislation: 

Due to the mortgage lender and mortgage broker practices that are in violation of the Residential Mortgage Act, communities and banks are facing high costs associated with the decreasing property value due to foreclosures. In Georgia alone this year the Department of Banking and Finance had about 280 administrative actions issued to the mortgage lenders and brokers who violated the Act and therefore had their licenses revoked. The Department of Banking and Finance is not currently able to go beyond the parameters of the state of Georgia to check mortgage lenders’ and brokers’ records. This bill would allow the Department of Banking and Finance to participate in the nation-wide residential mortgage licensing system that would enable the Department and the system’s participants to check the licensing status as well as the administrative actions against mortgage lenders and brokers nation-wide.

The Department of Banking and Finance as well as Georgia mortgage lenders and brokers have asked for and are in support of this legislation. Participating in the nation-wide residential mortgage licensing system will aid in prevention of fraud in the mortgage lending industry. This bill does NOT raise any fees. Current fees being paid to the Department of Banking and Finance will remain the same.