Georgia Mortgage License Application Warning
NET BRANCHING is not acceptable and net branches will not be approved.
Definitions of net branching vary, and only upon receipt of complete branch
information will the Department be able to determine if a proposed branch
(additional office) complies with Department’s standards.
While other criteria may be added as this issue develops, the Department
will consider the following factors in determining whether an office
location qualifies as a branch or is actually a separate business/legal
entity which must be licensed separately:
If the Department discovers that a licensee is allowing a person
or company to operate from an inadvertently unapproved location
or via a net branch arrangement, the licensee will be fined for
each unapproved location and for each unapproved branch manager
[See Department Rule 80-11-3-.01, paragraphs (6) and (17)].
Revocation procedures against that licensee may be initiated as
provided for in O.C.G.A. §7-1-1002 (c) and O.C.G.A. §7-1-1017,
and the lender may be fined for each loan generated from an
unapproved location. Fine amounts are listed in the Department’s
Who the actual owner or lessee of the property location proposed as a branch
Whether branch managers and employees are supervised W-2 employees of the
applicant/licensee or are unsupervised independent contractors paid on a
Whether all required books and records are maintained at the principal place
of business (Rule 80-11-2-.01). Income and expense items must be accounted
for on the books of the licensee at the main location. No separate books and
records may be maintained for each location (although subsidiary records may
be maintained for convenience purposes).
If you the licensee are a lender, you must provide funding for the loans
generated by any branch. It is not appropriate for a lender’s branch to
broker loans to other lenders.
The licensee must have consistent policies and procedures and quality
control for loan origination and processing that are enforced at all the
All operating, financial, and employee records for the branch need to be
kept at the main office.
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