Georgia Residential Mortgage Act (“GRMA”) FAQ
When is the $10 per loan fee collected?
There shall be imposed on the closing of every mortgage loan subject to regulation under Title 7, Chapter 1, ARTICLE 13 of the Financial Institutions Code of Georgia which, as defined in Code Section 7-1-1000, includes all mortgage loans, whether or not closed by a mortgage broker or mortgage lender licensee or registrant, a fee of $10.00. The fee shall be paid by the borrower to the collecting agent at the time of closing of the mortgage loan transaction.
Who is the collecting agent?
The term "collecting agent" means the person listed as the secured party on a security deed or other loan document that establishes a lien on the residential real property taken as collateral at the time of the closing of the mortgage loan transaction.
Who is required to remit the Georgia Residential Mortgage Act $10 per loan fees (“GRMA fees”) to the Department of Banking and Finance?
The collecting agent shall remit the fee to the department at the time and in the manner specified by regulation of the department. Though collecting agents may use third parties to remit the fees and the fee statement to the Department, the collecting agent is still the person responsible for remittance of GRMA fees. Failure of a collecting agent or its third party remitter to timely remit the GRMA fees along with the corresponding fee statement via the online reporting and payment system may result in the imposition of a fine. Beginning January 1, 2017, the Department may return any future paper checks received for GRMA fees and, in such case, will not treat the payment as a timely remittance.
What is the deadline for remitting GRMA $10 per loan fees?
Fees collected for the period January 1 through June 30 of each year shall be remitted to the department no later than the first business day of September of each year. Fees collected for the period July 1 through December 31 of each year shall be remitted to the department no later than the first business day of March of each year.
Must an individual or entity remit GRMA fee statements if no GRMA fees were collected during the applicable reporting period?
No, GRMA fee statements are only required if GRMA fees were collected during the reporting period. The Department no longer requires the filing of $0 fee statements.
Is an entity that is not licensed by the Department required to collect and remit GRMA fees to the Department?
Yes, any individual or entity that closes residential mortgage loans, regardless of whether the individual or entity is licensed by the Department, is required to act as the collecting agent for payment of GRMA loan fees for each residential mortgage loan closed by the individual or entity. Fees should be remitted for the semiannual periods as referenced in O.C.G.A. § 7-1-1011(b)(2) and Department Rule 80-5-1-.04.
Are mortgage brokers required to collect and remit GRMA fees to the Department?
Mortgage licensees/registrants that act as the collecting agent (including brokers who table fund and collect the fee) must submit the fees and file the fee statement before the deadline to avoid fines and possible administrative action.
What is table funding?
Table funding is when a mortgage broker closes mortgage loans, which may be in the mortgage broker's own name with funds provided by others, and which loans are assigned to the mortgage lenders providing the funding of such loans within 24 hours of the funding.
For what type of mortgage loans must an individual or entity collect GRMA fees?
A loan or agreement to extend credit made to a natural person, which loan is secured by a deed to secure debt, security deed, mortgage, security instrument, deed of trust, or other document representing a security interest or lien upon any interest in one-to-four family residential property located in Georgia, regardless of where made, including the renewal or refinancing of such loan.
What is the link for the on-line GRMA per Loan Fee Reporting and Payment Process main page?
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