The Economic Growth, Regulatory Relief, and Consumer Protection Act, passed by the U.S. Congress in May 2018, added a new section to the federal Secure and Fair Enforcement for Mortgage Licensing Act (the “SAFE Act”) entitled “Employment Transition of Loan Originators.” Amendments in the new section, which became effective November 24, 2019, establish temporary authority for a qualified Mortgage Loan Originator (“MLO”) who has applied for a new state loan originator license to originate loans in the application state while the state considers the application. Temporary authority to operate is available for a limited amount of time and can only be utilized by applicants that satisfy specific requirements.
In response to the federal amendments, the state of Georgia acted to establish additional state-specific requirements for MLOs seeking to utilize temporary authority to originate loans during the application process. The Georgia Department of Banking and Finance recently issued final rulemaking regarding temporary authority that adds several additional requirements including rules governing advertising, mortgage loan transaction journals, signature requirements, record requirements and administrative fines.
Additionally, the final rule requires that a written disclosure be provided when a mortgage lender or mortgage broker is sponsoring an unlicensed MLO originating under temporary authority. The disclosure must be provided no later than the date the consumer signs an application or any disclosure and must contain the specific language provided in the rule. The mortgage lender or mortgage broker sponsoring the MLO operating under temporary authority are jointly responsible for ensuring the required disclosure is provided to consumers.
The final rule became effective January 9, 2020, except for the new disclosure provision, which shall be effective April 1, 2020.
Accordingly, DocMagic is making available a disclosure that provides the required language. DocMagic will be adding the new form, Georgia Mortgage Loan Originator Temporary Authority to Operate (Form ID: GATAO.MSC), to the Forms List on April 1, 2020, to allow the form to be selected as needed.
For additional information regarding the temporary authority amendments to the federal SAFE Act, see previous article here.
If you have any questions or to add the Georgia form to any other packages after April 1, 2020, please contact DocMagic’s Customer Service.
