GeorgiaHB 152025-2026 Regular SessionHouse

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)

Signed by Governor

Banks & BankingBanking and Financial InstitutionsGeneral Bill

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Bill Overview

Analyzed Economic Effects

15 provisions identified: 1 benefits, 3 costs, 11 mixed.

Mortgage businesses face new financial minimums

Georgia mortgage brokers must maintain at least $50,000 in net worth. Lenders that are not covered servicers must maintain $100,000 in net worth and $1 million in available funds. Covered servicers, with portfolios of 2,000 or more residential loans, must meet federal capital and liquidity standards. Those standards apply even without federal servicing approval, and covered servicers must also keep enough funds for normal operations. Requirements apply to each licensee, including within affiliated groups; written financial policies and lender cash-management and business plans are required.

Merchants gain clearer payment fund safeguards

Merchant acquirer limited-purpose banks must keep records identifying each merchant and the total money held for that merchant. Banks can arrange for another party to keep these records. Records must be kept honestly during normal business and be easy to find. Georgia can approve alternative ways to hold merchant funds only when those arrangements are designed to protect the funds.

Mortgage ads drop lender naming requirement

Ads using a person's mortgage number, loan amount, or other public loan details no longer have to name the lender. They must still begin with a clear, bold statement that the sender is not authorized, sponsored, or affiliated with the lender. They must also state that the recipient's lender did not provide the loan information.

Foreign bank offices lose continuation rule

The law removes a rule preserving registration for Georgia foreign bank representative offices registered on June 30, 2023. That rule also expressly allowed those offices to keep doing business. This change does not state each office's resulting status or provide a replacement registration process.

Incomplete financial license applications face withdrawal

Georgia can send a withdrawal notice when mortgage, check-sale, or money-transmission license applications lack required information. Applicants have 30 days after the notice is issued to provide the requested information. The state can withdraw the application if the applicant misses that deadline.

Bank deals get exemptions and scrutiny

Transactions governed by Georgia Code sections 7-1-605 through 7-1-608 are excluded from the bank holding company transaction rules. Sections 7-1-231 and 7-1-232 still apply. When reviewing covered bank holding company deals, the state must consider management's competence, character, and experience.

Credit union formation gets clearer safeguards

Credit union articles list organizers' and original directors' counties of residence instead of street addresses. Organizers must send filed articles or a statement for publication by the next business day. Notices must run weekly for two consecutive weeks, starting within 10 days after the newspaper receives them. State review must consider leaders' qualifications, public needs, and whether the proposed credit union has enough capital. The state may wait for required federal public-body approval before acting on the application.

Foreign bank moves require advance notice

Foreign banks must notify Georgia at least 30 days before moving a state branch, agency, or representative office. Representative offices must also post notices at the affected office and on their website at least 30 days before moving. The state can require an application when a relocation notice raises supervisory concerns.

Foreign banks face asset backing rules

Foreign banks can pledge approved assets held by state-approved, unrelated banks instead of the specified deposits or securities. The pledge generally must equal the greater of Georgia's state-bank capital requirement or 1% of branch or agency liabilities. Assets count at the lower of their principal amount or market value. The state can set a maximum for certain highly rated foreign banks or require more assets for safety or supervisory reasons.

Merchant payment banks face stricter screening

Merchant acquirer limited-purpose banks must complete commercial employee checks before hiring, confirm legal compliance, and keep the results for state review. Applicants or banks pay commercial check fees and fees for state-requested Georgia and FBI criminal checks. State conviction records are confidential and generally cannot be shared or treated as public records. A pardon no longer removes applicable felony charter bars or suspension and removal powers; lawful court action setting aside or reversing the conviction remains an exception. Georgia also has express financial-law enforcement powers over the merchant payment banks it charters.

Money service licenses face felony restrictions

Georgia must deny check-sale and money-transmission licenses when covered people have felony convictions from the past seven years. The state can also revoke existing licenses. Listed financial, fraud, dishonesty, and related crimes disqualify covered people at any time. Covered people include applicants, licensees, and covered directors, trustees, owners, executive officers, and employees. Guilty pleas, no-contest pleas, and findings of guilt count, with stated exceptions for reversal, qualifying first-offender treatment, or pardon.

New banks face prompt public notices

Bank and trust company organizers must send filed articles, or a statement instead, for publication by the next business day. Public notices identify organizers and proposed directors by county of residence rather than street address. The law pairs a fast filing deadline with less personal address disclosure.

Mortgage businesses face regular financial reviews

Georgia mortgage brokers and lenders must file quarterly and annual loan, servicing, and financial reports using state and national licensing-system forms. Brokers must submit yearly financial statements under standard accounting rules; unaudited statements require the broker's certification. The state can require a broker audit to check compliance. Lenders must obtain outside audits at least annually and make audited statements available as required. Subsidiaries may submit a parent's consolidated audit with their own statement; state rules may allow unaudited lender statements based on assets, complexity, or loan volume.

Mortgage licensing tightens felony history rules

Mortgage loan originators face disqualification for felonies within seven years, or listed disqualifying crimes at any time. First-offender treatment without a court finding of guilt counts for originators. Other covered mortgage applicants, licensees, and associated people face similar seven-year and lifetime rules for qualifying pleas or findings. Pardons are an exception. Other covered people also have an exception after successfully completing and documenting first-offender probation or a sentence without a court finding of guilt.

Mortgage oversight gains rules and flexibility

Georgia mortgage brokers and lenders must maintain a board or permitted oversight body that oversees internal audits, compliance, and accurate reporting. They must maintain risk programs suited to their size and risks, assess risks annually, and report results to that body. Federally approved covered servicers need federal approval to use an alternative oversight body. After formal review, the state can add conditions for extremely high-risk firms or exempt extremely low-risk firms from risk-management rules. The state can publicly announce temporary suspensions of requirements during sufficiently severe economic, environmental, or societal events.

Sponsors & Cosponsors

Cosponsors

John F. Kennedy
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 209 • No: 2

Senate vote • 3/10/2025

PASSAGE

Yes: 46 • No: 1 • Other: 1

House vote • 2/12/2025