GeorgiaHB 152025-2026 Regular SessionHouseWALLET

Banking and finance; update terminology; provisions

Sponsored By: Robert Dickey (Republican), Demetrius Douglas (Democrat), Jaclyn Ford (Republican), Jason Ridley (Republican), Noel Williams (Republican), Bruce Williamson (Republican)

Became Law

Banks & BankingBanking and Financial InstitutionsGeneral Bill

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 0 benefits, 4 costs, 5 mixed.

Stronger capital and audits for mortgage firms

Mortgage brokers must keep at least $50,000 in net worth. Mortgage lenders that are not covered servicers must keep at least $100,000 in net worth and $1,000,000 in liquidity. Covered servicers must meet FHFA seller/servicer capital and liquidity rules. Lenders must get annual external audits; brokers must file yearly financial statements. Firms must file quarterly and annual reports to the NMLS, keep a board, run internal audits, and have a written risk‑management program with an annual review.

Tighter license checks for loan originators

The Department checks mortgage loan originator applicants for prior license revocations, felony convictions, financial responsibility, education, and test scores. A felony in the last seven years, or any disqualifying crime at any time, can block a license unless set aside, reversed, or pardoned. The law also updates key mortgage definitions, like net worth, liquidity, covered servicer, disqualifying crime, and Mortgage Call Report. These definitions decide who must be licensed and how rules apply.

Stricter felony bars for finance licenses

For money transmitters, cashers of payment instruments, and other covered finance licenses, the Department must deny or may revoke a license for a felony in the last seven years. A listed disqualifying crime, like theft, fraud, money laundering, identity theft, cyber crime, or tax evasion, can bar you at any time. Convictions include guilty and nolo pleas unless set aside, reversed, or pardoned. These rules reach applicants, owners, officers, and covered employees.

Stronger safeguards for merchant acquirer banks

Merchant acquirer limited purpose banks must place merchant funds into a federally insured Georgia bank account right away and hold them until payout. The money is the merchant’s property at deposit; banks may deduct chargebacks, fees, and reserves and must keep merchant‑level records. The Department now supervises and examines these banks. For new charters, the Department decides within 90 days, can require fingerprints and criminal checks, and will not charter applicants with felony convictions. Applicants or banks pay background‑check fees.

New rules for foreign bank branches

Foreign banks must clearly tell customers that deposits at Georgia branches or agencies are not FDIC‑insured. Each branch or agency must keep pledged assets equal to the larger of the Georgia bank capital rule or 1% of its total liabilities. Banks can use shorter filings for added Georgia branches and must give at least 30 days’ notice before moving a branch or representative office; approval takes effect on the Department’s letter date or 10 business days after it acknowledges the notice. Moves require a conspicuous customer notice at the office and on the website. Legal papers can be served at the Georgia location, and “State” means a U.S. state or DC.

30-day cure for license applications

The Department can withdraw a deficient license application after giving notice. You have 30 days to send missing items for mortgage, money transmission, payment‑instrument cashing, and other Article 3 licenses. The notice goes to your email on file or is posted on the NMLS. If you do not respond in time, the application is withdrawn.

New rules for Georgia credit unions

At least eight people with a common bond are needed to form a state credit union. The Department reviews proposed articles and bylaws to ensure they follow the law. Boards may appoint loan officers to approve loans to a borrower up to 5% of the credit union’s net worth. Loan officers must keep records, and the board reviews the list of loans.

Clear, bold disclaimers in loan ads

If an ad uses a person’s loan number or loan amount, it must start with a bold statement. The ad must name the advertiser and the person’s lender, and say the advertiser is not authorized by or affiliated with that lender. It must also say the loan information did not come from the lender. This helps borrowers spot look‑alike ads but adds formatting steps for advertisers.

Updates to bank deal reviews and filings

Some bank holding company transactions are excluded from this part and reviewed under other state rules. When articles of incorporation are filed, applicants must send them to a newspaper by the next business day for publication once a week for two weeks, starting within ten days of receipt. In reviews, the Department must weigh money and management factors, including management skill, character, experience, and future prospects.

Sponsors & Cosponsors

Cosponsors

Steven McNeel
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 209 • No: 2

Senate vote • 3/10/2025

PASSAGE

Yes: 46 • No: 1

House vote • 2/12/2025