Georgia passed a bill imposing Net Worth requirements for mortgage lenders, servicers, and brokers licensed under the Georgia Residential Mortgage Act. Under the bill, mortgage brokers must have a net worth of at least $50,000. Also, mortgage lenders and mortgage servicers not operating as a covered servicer must have a net worth of at least $100,000 and evidence of liquidity of $1,000,000 (which may include a warehouse line of credit) and mortgage lenders and mortgage servicers that operate as a covered servicer must maintain capital, net worth, liquidity that is sufficient to cover normal business operations and meets the Federal Housing Finance Agency’s Eligibility Requirements for Enterprise Single-Family Seller/Servicer, regardless of whether or not the covered servicer is approved for government-sponsored enterprise servicing. In addition, the bill requires covered servicers to maintain a board of directors, annually procure an external audit, and establish a risk management program. “Covered servicer” means a mortgage lender with a servicing portfolio of 2,000 or more residential mortgage serviced or subserviced loans as reported in the mortgage lender or mortgage servicer’s mortgage call report as of the most recent calendar year end, excluding whole loans owned, reverse mortgages that are serviced or subserviced for others, and loans being interim serviced prior to sale. The bill becomes effective July 1, 2025.
Click to view the GA HB 15: https://www.tenaco.com/wp-content/uploads/2025/05/GA-HB-15-05-16-25.pdf
