» Georgia Sets Financial and Governance Standards for Mortgage Licensees Under HB 15

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Georgia Sets Financial and Governance Standards for Mortgage Licensees Under HB 15

June 7, 2025

Effective July 1, 2025, Georgia House Bill 15 introduces sweeping changes to the Georgia Residential Mortgage Act, establishing stricter financial standards and corporate governance requirements for mortgage brokers, lenders, and servicers operating in the state. The legislation is part of Georgia’s ongoing effort to enhance consumer protection and ensure the financial integrity of its licensed mortgage industry participants.

1.Minimum Net Worth and Liquidity Requirements

HB 15 imposes clearly defined net worth and liquidity thresholds that vary depending on the license type. Mortgage brokers must maintain a minimum net worth of $50,000. For mortgage lenders and mortgage servicers that are not classified as “covered servicers,” the law requires a minimum net worth of $100,000 and evidence of $1,000,000 in liquidity, which may include access to a warehouse line of credit.

The requirements become more stringent for covered servicers—those with a servicing portfolio of 2,000 or more residential mortgage loans, based on their most recent Mortgage Call Report. These entities must maintain capital, net worth, and liquidity sufficient to cover normal business operations and must also meet the Federal Housing Finance Agency’s (FHFA) eligibility standards for Enterprise Single-Family Seller/Servicers, regardless of whether or not they actually service GSE loans.

2.Governance, Audit, and Risk Oversight for Covered Servicers

In addition to financial standards, HB 15 imposes corporate governance obligations on covered servicers. These include the requirement to establish and maintain a board of directors (or comparable governing body), undergo an annual external audit, and implement a comprehensive risk management program. These provisions mirror national trends toward increasing oversight of servicers handling high volumes of residential mortgage accounts.

3.Who Is Considered a “Covered Servicer”?

A “covered servicer” is defined as a mortgage lender or servicer that services or subservices 2,000 or more residential mortgage loans as of the most recent calendar year end. Importantly, certain loan types are excluded from this threshold—such as whole loans the lender owns outright, reverse mortgages serviced for others, and loans that are being serviced temporarily (interim serviced) prior to their sale.

4.Preparing for the July 1, 2025 Deadline

Entities licensed under the Georgia Residential Mortgage Act should begin reviewing their financial standing and corporate structure now. Lenders and servicers will need to assess whether they meet the minimum capital and liquidity standards, particularly if they are approaching the 2,000-loan threshold. In addition, organizations that qualify as covered servicers must begin preparing for external audit requirements and implementing or updating their risk management programs.