GA MLO cheat sheet

SAFE Act: an MLO must be registered with the NMLS and hold a state license (or be a registered bank employee) before taking a residential mortgage loan application; registration is renewed annually through NMLS, and a felony conviction in the prior 7 years generally bars licensure absent a state waiver.

RESPA Section 8: paying or receiving anything of value for the referral of settlement service business is prohibited; bona fide compensation must be for goods or services actually performed and not tied to referral volume. Section 8 also bans fee splitting and unearned fees.

RESPA Section 10: the seller may not require the buyer to use a particular title insurer; the buyer may not be required to use a particular title company. Affiliated business arrangements require a written disclosure (AfBA) at or before referral and do not permit required use.

RESPA servicing rules: a servicing transfer notice must be sent at least 15 days before the transfer; the servicer must respond to a qualified written request within 30 business days (extendable 15 business days), and must acknowledge within 5 business days.

TILA/Regulation Z: for high-cost mortgages (HOEPA) - points and fees exceed 5% of the loan amount (or the 2024 threshold, indexed annually), prepayment penalties are restricted, and balloon payments are generally prohibited for high-cost loans.

TILA-RESPA Integrated Disclosure (TRID): the Loan Estimate must be delivered within 3 business days of application; the Closing Disclosure must be received by the consumer at least 3 business days before consummation; revised CDs restart the 3-day waiting period only in specified changed-circumstance cases.

ECOA/Regulation B: creditors may not discriminate on the basis of race, color, religion, national origin, sex, marital status, age, or receipt of public assistance. Adverse action notice must be given within 30 days of a completed application (or 30 days of taking adverse action after a counteroffer).

HMDA: covered institutions must report application, origination, and denial data, including race, ethnicity, sex, and census tract, annually to the CFPB; the loan/application register (LAR) is submitted by March 1 for the prior year.

Fair Housing Act: prohibits discrimination in the sale, rental, or financing of dwellings based on race, color, religion, sex, national origin, familial status, or disability. Real estate agents and lenders are both covered; disparate impact claims are recognized.

Loan-to-value (LTV) = loan amount ÷ property value (or purchase price, whichever is lower). Combined LTV (CLTV) = (first lien + second lien) ÷ property value. A higher LTV generally raises the required mortgage insurance premium.

Conventional loans: not government-insured; conforming loans meet Fannie Mae/Freddie Mac limits (2024 baseline: $766,550 for a one-unit property in most areas, higher in high-cost areas). Jumbo loans exceed the conforming limit.

FHA loans: government-insured; down payment as low as 3.5% with a 580+ FICO; mortgage insurance premium (MIP) includes an upfront 1.75% and an annual premium; MIP typically lasts for the life of the loan if the down payment is under 10%.

VA loans: no down payment for eligible veterans with full entitlement; VA funding fee (typically 2.15%–3.3% for first use depending on down payment) can be financed; no monthly mortgage insurance, but a one-time funding fee applies.

USDA loans: zero down payment for eligible rural properties; household income limits apply (typically 115% of area median income); a guarantee fee (upfront and annual) applies.

Fixed-rate vs. adjustable-rate: a fixed-rate loan has a constant rate and payment for the full term; an ARM has an initial fixed period, then adjusts periodically based on an index plus margin, subject to periodic and lifetime caps.

Amortization: on a fully amortizing loan, the monthly payment is constant but the interest portion declines and the principal portion rises over time. On an interest-only loan, no principal is paid during the IO period, so the balance does not decline.

Closing costs: include origination fees, discount points, appraisal, title insurance, recording fees, and prepaid interest. Discount points are paid upfront to lower the interest rate; one point equals 1% of the loan amount.

Debt-to-income (DTI) ratio = total monthly debt obligations ÷ gross monthly income. Back-end DTI includes housing plus all other debt; front-end DTI includes only housing expenses.

Application intake: collect the borrower's name, income, Social Security number, property address, estimated value, loan amount, and other information sufficient for a credit decision. Under TRID, the Loan Estimate must be delivered within 3 business days of receipt of the application.

Pre-qualification vs. pre-approval: a pre-qualification is an informal estimate based on stated information; a pre-approval involves a credit review and documented underwriting and is stronger evidence to sellers.

Documentation: verify income (pay stubs, W-2s, tax returns), assets (bank statements), and employment. Self-employed borrowers generally need 2 years of tax returns. Gift funds require a gift letter and documentation of transfer.

Credit report: pull a tri-merge report (Equifax, Experian, TransUnion). Dispute errors in writing; the lender may require a letter of explanation for derogatory items. Inquiries within a short window for mortgage shopping are generally treated as one inquiry.

Appraisal: an independent appraiser determines market value; the borrower receives a copy of the appraisal. If the appraisal comes in low, the borrower may renegotiate, bring cash to closing, or dispute the value.

Lock-in: a rate lock commits the lender to a rate for a specified period; a lock extension may cost a fee. A float-down option lets the borrower get a lower rate if rates fall before closing.

Closing: the Closing Disclosure must be received at least 3 business days before consummation. The borrower signs the promissory note and security instrument; funds are disbursed and the deed is recorded.

Adverse action: if the application is denied, the lender must send an adverse action notice within 30 days, stating the reasons and the borrower's right to a copy of the appraisal and credit report.

Fiduciary duty: an MLO owes the borrower loyalty, confidentiality, disclosure, and obedience to lawful instructions. The MLO must act in the borrower's best interest, not merely close the loan.

Prohibited conduct: steering a borrower to a higher-cost loan to increase compensation, falsifying income or asset documents, and failing to disclose conflicts of interest are ethics violations and may also violate federal law.

Compensation: under the Loan Originator Compensation rule (Regulation Z), compensation may not be based on the loan's terms or conditions (other than the amount of credit extended), and dual compensation (from both borrower and lender on the same loan) is prohibited.

Confidentiality: non-public personal information must be protected under the Gramm-Leach-Bliley Act (GLBA); the MLO may not disclose borrower information without authorization except as required by law or to service the loan.

Fair dealing: present loan options accurately, disclose all fees, and do not use high-pressure tactics or misleading advertising. Advertising must include the NMLS unique identifier as required by the SAFE Act.

Conflicts of interest: an MLO must disclose any financial interest in a service provider (e.g., a title company or appraisal management company) and may not accept undisclosed referral fees.

Recordkeeping: retain loan origination records for the period required by state and federal law (generally 3 years under Regulation Z for certain records); accurate records support audits and consumer protection.

Reporting: suspected fraud or misconduct must be reported to the appropriate authority (e.g., the lender's compliance officer or the state regulator); retaliation against a whistleblower is prohibited.

Georgia licensing: mortgage loan originators must be licensed by the Georgia Department of Banking and Finance (DBF) through NMLS, complete 20 hours of pre-licensing education (including 3 hours of federal law, 3 hours of ethics, and 2 hours of non-traditional mortgage lending), and pass the SAFE MLO test.

Continuing education: Georgia requires 8 hours of annual CE, including 3 hours of federal law and regulations, 2 hours of ethics (including fraud and consumer protection), and 2 hours of non-traditional mortgage lending; CE must be completed by December 31 each year.

Georgia Fair Lending Act: restricts high-cost home loans, including limits on points and fees, prepayment penalties, and balloon payments; prohibits lending without regard to the borrower's ability to repay and restricts flipping and refinancing within 12 months.

Georgia Residential Mortgage Act (GRMA): authorizes the DBF to license and examine mortgage brokers and lenders; violations may result in license suspension or revocation, fines, and cease-and-desist orders.

Georgia advertising rule: mortgage advertising must include the licensee's name and NMLS unique identifier; advertisements may not be false, misleading, or omit material terms such as the APR or the fact that the rate is variable.

Georgia disclosure: the licensee must provide the borrower with a written disclosure of the licensee's relationship to the lender and any fees the licensee will receive, consistent with state and federal disclosure requirements.

Georgia escrow: a mortgage broker or lender that holds borrower funds in escrow must maintain a separate escrow account and reconcile it monthly; commingling of escrow funds with operating funds is prohibited.

Georgia examination and reporting: licensees must respond to DBF examination requests, maintain records for at least 3 years, and file annual reports through NMLS; failure to cooperate may result in disciplinary action.

SAFE Act requires MLO registration through NMLS and annual renewal; a felony conviction within the prior 7 years generally disqualifies an applicant absent a state waiver.

RESPA Section 8 prohibits referral fees and unearned fee splitting for settlement services; bona fide compensation must reflect goods or services actually performed.

RESPA Section 10 bars a seller from requiring the buyer to use a particular title company; affiliated business arrangements require written disclosure at or before referral.

Servicing transfer notice must be sent at least 15 days before transfer; a qualified written request must be acknowledged within 5 business days and answered within 30 business days (extendable 15).

HOEPA high-cost triggers include points and fees exceeding 5% of the loan amount (indexed annually); high-cost loans face restrictions on prepayment penalties and balloon payments.

TRID: Loan Estimate within 3 business days of application; Closing Disclosure received at least 3 business days before consummation; a revised CD restarts the waiting period only in specified changed-circumstance cases.

ECOA/Regulation B prohibits discrimination based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance; adverse action notice is due within 30 days.

HMDA requires covered institutions to report application, origination, and denial data, including race, ethnicity, sex, and census tract; the LAR is submitted by March 1 for the prior year.

Fair Housing Act prohibits discrimination in the sale, rental, or financing of dwellings based on race, color, religion, sex, national origin, familial status, or disability; disparate impact claims are recognized.

LTV = loan amount ÷ property value (or purchase price, whichever is lower); CLTV = (first lien + second lien) ÷ property value. Higher LTV generally increases mortgage insurance cost.

Conventional conforming loans meet Fannie Mae/Freddie Mac limits (2024 baseline: $766,550 for a one-unit property in most areas, higher in high-cost areas); jumbo loans exceed the limit.

FHA: down payment as low as 3.5% with a 580+ FICO; MIP includes an upfront 1.75% premium and an annual premium; MIP typically lasts the life of the loan if the down payment is under 10%.

VA: no down payment for eligible veterans with full entitlement; VA funding fee (typically 2.15%–3.3% for first use depending on down payment) may be financed; no monthly mortgage insurance.

USDA: zero down payment for eligible rural properties; household income limits apply (typically 115% of area median income); a guarantee fee (upfront and annual) applies.

Fixed-rate loans have a constant rate and payment for the full term; ARMs have an initial fixed period, then adjust based on an index plus margin, subject to periodic and lifetime caps.

On a fully amortizing loan, the monthly payment is constant but the interest portion declines and the principal portion rises; on an interest-only loan, no principal is paid during the IO period.

Closing costs include origination fees, discount points, appraisal, title insurance, recording fees, and prepaid interest; one discount point equals 1% of the loan amount and lowers the interest rate.

DTI = total monthly debt obligations ÷ gross monthly income; back-end DTI includes housing plus all other debt, while front-end DTI includes only housing expenses.

Application intake collects the borrower's name, income, Social Security number, property address, estimated value, and loan amount; the Loan Estimate must be delivered within 3 business days of application under TRID.

A pre-qualification is an informal estimate based on stated information; a pre-approval involves a credit review and documented underwriting and is stronger evidence to sellers.

Documentation verifies income (pay stubs, W-2s, tax returns), assets (bank statements), and employment; self-employed borrowers generally need 2 years of tax returns; gift funds require a gift letter and transfer documentation.

Pull a tri-merge credit report (Equifax, Experian, TransUnion); dispute errors in writing; lenders may require a letter of explanation for derogatory items; mortgage-shopping inquiries in a short window are generally treated as one inquiry.

An independent appraiser determines market value; the borrower receives a copy of the appraisal; if the value is low, the borrower may renegotiate, bring cash to closing, or dispute the value.

A rate lock commits the lender to a rate for a specified period; a lock extension may cost a fee; a float-down option lets the borrower get a lower rate if rates fall before closing.

At closing, the Closing Disclosure must be received at least 3 business days before consummation; the borrower signs the promissory note and security instrument, funds are disbursed, and the deed is recorded.

If the application is denied, the lender must send an adverse action notice within 30 days stating the reasons and the borrower's right to a copy of the appraisal and credit report.

Fiduciary duty requires loyalty, confidentiality, disclosure, and obedience to lawful instructions; the MLO must act in the borrower's best interest, not merely close the loan.

Steering a borrower to a higher-cost loan to increase compensation, falsifying income or asset documents, and failing to disclose conflicts of interest are ethics violations and may also violate federal law.

Under the Loan Originator Compensation rule (Regulation Z), compensation may not be based on the loan's terms or conditions (other than the amount of credit extended), and dual compensation from both borrower and lender on the same loan is prohibited.

Non-public personal information must be protected under the Gramm-Leach-Bliley Act (GLBA); the MLO may not disclose borrower information without authorization except as required by law or to service the loan.

Present loan options accurately, disclose all fees, and avoid high-pressure tactics or misleading advertising; advertising must include the NMLS unique identifier as required by the SAFE Act.

An MLO must disclose any financial interest in a service provider (e.g., a title company or appraisal management company) and may not accept undisclosed referral fees.

Retain loan origination records for the period required by state and federal law (generally 3 years under Regulation Z for certain records); accurate records support audits and consumer protection.

Suspected fraud or misconduct must be reported to the appropriate authority (e.g., the lender's compliance officer or the state regulator); retaliation against a whistleblower is prohibited.

Georgia mortgage loan originators must be licensed by the Georgia Department of Banking and Finance (DBF) through NMLS, complete 20 hours of pre-licensing education (including 3 hours of federal law, 3 hours of ethics, and 2 hours of non-traditional mortgage lending), and pass the SAFE MLO test.

Georgia requires 8 hours of annual continuing education, including 3 hours of federal law and regulations, 2 hours of ethics (including fraud and consumer protection), and 2 hours of non-traditional mortgage lending; CE must be completed by December 31 each year.

The Georgia Fair Lending Act restricts high-cost home loans, including limits on points and fees, prepayment penalties, and balloon payments; it prohibits lending without regard to the borrower's ability to repay and restricts flipping and refinancing within 12 months.

The Georgia Residential Mortgage Act (GRMA) authorizes the DBF to license and examine mortgage brokers and lenders; violations may result in license suspension or revocation, fines, and cease-and-desist orders.

Georgia mortgage advertising must include the licensee's name and NMLS unique identifier; advertisements may not be false, misleading, or omit material terms such as the APR or the fact that the rate is variable.

The licensee must provide the borrower with a written disclosure of the licensee's relationship to the lender and any fees the licensee will receive, consistent with state and federal disclosure requirements.

A mortgage broker or lender that holds borrower funds in escrow must maintain a separate escrow account and reconcile it monthly; commingling of escrow funds with operating funds is prohibited.

Licensees must respond to DBF examination requests, maintain records for at least 3 years, and file annual reports through NMLS; failure to cooperate may result in disciplinary action.