On May 14, the Georgia General Assembly passed HB 15 revising various banking and finance provisions. The bill revises procedures for incorporators of credit unions. It also addressed licensure requirements for money transmission, cashing payment instruments, mortgage lenders, mortgage brokers, foreign banking institutions, and installment loans. The legislation included provisions for revised auditing procedures, corporate governance requirements, and liquidity requirements for mortgage lenders and brokers.
The act empowers the state’s Department of Banking and Finance to issue a notice of intent to administratively withdraw a deficient license application if the applicant fails to provide required information within 30 days of the notice. Additionally, mortgage lenders and brokers must maintain capital, net worth, and liquidity in compliance with the new code, measured at the licensee level, and reported according to GAAP. They are also required to establish a board of directors to oversee corporate governance and compliance. The act goes into effect on July 1.
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