Current through 2023-2024 Legislative Session Chapters 1-496, 504, 505, 514, 516-545, 549, 550, 566, 570, 571, 578, 580, 586, 590-592, 594, 595, 604, 609, 612, 696, 697
Section 7-1-1002 - [Effective 7/1/2024] Transaction of business without a license, registration, or exemption prohibited; knowing purchase of mortgage loan from unlicensed or nonexempt broker or lender prohibited; liability of persons controlling violators(a) It shall be prohibited for any person to transact business in this state directly or indirectly as a mortgage broker, a mortgage lender, or a mortgage loan originator unless such person:(1) Is licensed under this article by the department utilizing the Nationwide Multistate Licensing System and Registry;(2) Is exempted from the licensing requirements of this article pursuant to Code Section 7-1-1001;(3) In the case of an employee of a mortgage broker or mortgage lender, has qualified to be relieved of the necessity for a license under the employee exemption in paragraph (14) of subsection (a) of Code Section 7-1-1001; or(4) In the case of a mortgage loan originator, is supervised by a mortgage broker, mortgage lender, or exemptee on a daily basis while performing mortgage functions; is employed by and works exclusively for only one mortgage broker, mortgage lender, or exemptee; and is paid on a W-2 basis by the employing mortgage broker, mortgage lender, or exemptee, except those natural persons exempt from licensure as a mortgage broker or mortgage lender under paragraph (17) of subsection (a) of Code Section 7-1-1001. Each licensed mortgage loan originator shall register with and maintain a valid unique identifier issued by the Nationwide Multistate Licensing System and Registry. For the purposes of implementing an orderly and efficient mortgage loan originator process, the department may establish licensing rules or regulations and interim procedures for licensing and acceptance of applications.(b) It shall be prohibited for any person, as defined in Code Section 7-1-1000, to purchase, sell, or transfer one or more mortgage loans or loan applications from or to a mortgage loan originator, mortgage broker, or mortgage lender who is neither licensed nor exempt from the licensing provisions of this article. Such a purchase shall not affect the obligation of the borrower under the terms of the mortgage loan. The department shall provide for distribution or availability of information regarding approved or revoked licenses.(c) Every person who directly or indirectly controls a person who violates subsection (a), (a.1), or (b) of this Code section, every general partner, executive officer, joint venturer, or director of such person, and every person occupying a similar status or performing similar functions as such person violates with and to the same extent as such person, unless the person whose violation arises under this subsection sustains the burden of proof that he or she did not know and, in the exercise of reasonable care, could not have known of the existence of the facts by reason of which the original violation is alleged to exist.Amended by 2024 Ga. Laws 474,§ 1-20, eff. 7/1/2024.Amended by 2020 Ga. Laws 521,§ 7, eff. 7/29/2020.Amended by 2017 Ga. Laws 275,§ 7, eff. 5/9/2017.Amended by 2016 Ga. Laws 450,§ 6-1, eff. 7/1/2016.Amended by 2015 Ga. Laws 9,§ 7, eff. 3/13/2015.Amended by 2011 Ga. Laws 169,§ 9, eff. 7/1/2011.Amended by 2010 Ga. Laws 624,§ 7, eff. 6/3/2010.Amended by 2009 Ga. Laws 66,§ 1, eff. 7/1/2009.Amended by 2003 Ga. Laws 376, § 17, eff. 7/1/2003.This section is set out more than once due to postponed, multiple, or conflicting amendments.