Bona Fide Nonprofit Corporations
The Georgia Residential Mortgage Act (GRMA), specifically, O.C.G.A. § 7-1-1001(a)(18) and Department Rule 80-11-5-.08 provide the requirements for an exemption to mortgage loan originator licensing for employees of bona fide nonprofit corporations. The law requires that a bona fide nonprofit corporation request a determination from the Department that its corporation meets the requirements. If the nonprofit corporation qualifies for the exemption (i.e., determination request is granted), an annual certification is required between December 1 and December 31 of each year.
In order for a corporation to be considered a bona fide nonprofit corporation under O.C.G.A. § 7-1-1001(a)(18), the Department will determine that the nonprofit corporation:
(i) Has the status of a tax-exempt organization under Section 501(c) (3) of the Internal Revenue Code of 1986;
(ii) Promotes affordable housing;
(iii) Conducts its activities in a manner that serves public or charitable purposes, rather than commercial purposes;
(iv) Receives funding and revenue and charges fees in a manner that does not incentivize it or its employees to act other than in the best interests of its clients;
(v) Compensates its employees in a manner that does not incentivize employees to act other than in the best interests of its clients;
(vi) Provides or identifies for the borrower mortgage loans with terms favorable to the borrower and comparable to mortgage loans and housing assistance provided under government housing assistance programs. In order for mortgage loans to have terms that are favorable to the borrower, the department shall determine that the terms are consistent with loan origination in a public or charitable context, rather than in a commercial context; and
(vii) Satisfies the exemption from licensure set forth in paragraph O.C.G.A. § 7-1-1001(a)(13) of this subsection applies to nonprofit corporations making mortgage loans to promote home ownership or improvements for the disadvantaged.
Please use the following form for the Initial Determination Request – Bona Fide Determination and Annual Certification Form. If the request is granted, this form will also be utilized for the Annual Certification.
The following form should be utilized for any changes to the contact information provided to the Department after the initial request or annual certification - Bona Fide Nonprofit Contact Information Update Form. Please do not resubmit the determination request form for contact information updates.