The Georgia Department of Banking and Finance (“DBF”) has issued a proposed rule regarding “temporary authority to operate” as a loan originator (as provided in the amended SAFE Act). The proposed rule can be found at the following link: Proposed Rule.
The DBF’s synopsis precedes the proposed rule. In essence, the DBF adds (1) disclosure, (2) advertising, (3) recordkeeping and (4) reporting requirements in connection with loan originators operating under temporary authority. Moreover, the proposed rules make clear that not only the loan originator, but also the sponsoring broker or lender, could be liable if it is determined that the loan originator was not entitled to temporary authority.
Comments are due to the DBF by December 18, 2019. We anticipate that the rules will be effective, with any changes, within twenty days of the DBF’s hearing on December 20, 2019. Please contact Jennifer Dozier at jdozier@franzen-salzano.com if you have questions or wish for us to assist in preparing a comment letter.