HB15: HB15 Banking and finance; update terminology; provisions

House Bill 15 amends Title 7 of Georgia's banking and finance code across many types of financial businesses. It updates outdated terminology (such as replacing 'addresses' with 'counties of residence' for incorporators and directors), and adds a new definition of 'disqualifying crime' that lets regulators deny or revoke licenses at any time, not just within seven years, for certain serious felonies like fraud, embezzlement, and identity theft. The bill creates new corporate governance, internal audit, and risk management requirements for mortgage lenders and mortgage brokers (Sections 19-20), and sets specific minimum net worth and liquidity amounts they must maintain, such as $50,000 for brokers and $100,000 plus $1 million in liquidity for most lenders (Section 19). It also lets the Department of Banking and Finance administratively withdraw incomplete license applications after 30 days, revises foreign bank relocation and deposit procedures, and updates background check procedures for merchant acquirer limited purpose banks. The changes take effect once the Governor signs the bill.

• Adds a new 'disqualifying crime' definition covering felonies like fraud, embezzlement, and identity theft that let regulators deny or revoke a financial license at any time, not just within seven years.
• Sets minimum net worth and liquidity requirements for mortgage lenders and brokers, including a $50,000 net worth floor for brokers and $100,000 net worth plus $1 million liquidity for most lenders.
• Requires mortgage lenders and brokers to establish a board of directors, written corporate governance framework, internal audit function, and annual risk management assessment.
• Lets the Department of Banking and Finance administratively withdraw a license application if an applicant fails to supply required information within 30 days of notice.
• Revises credit union incorporation procedures, replacing published street addresses of subscribers and directors with their counties of residence.
• Updates foreign bank branch relocation, deposit, and service-of-process rules, and revises background check procedures for merchant acquirer limited purpose banks.

The bill affects banks, trust companies, and credit unions and their incorporators and directors; mortgage lenders and mortgage brokers and their employees and board members; money transmitters and payment instrument cashers; foreign banking institutions operating branches in Georgia; and merchant acquirer limited purpose banks and their employees, all regulated by the Georgia Department of Banking and Finance.

Mortgage companies would face new capital, governance, and audit obligations meant to strengthen financial stability, while regulators gain broader power to deny licenses to people with certain fraud-related felony convictions regardless of how long ago they occurred. Applicants also risk faster application denials if paperwork is incomplete.

• Sections 7, 10, 30 add a 'disqualifying crime' definition (felonies involving fraud, embezzlement, identity theft, and similar offenses) applicable across multiple licensing articles.
• Sections 8, 11, 14, 31 let the department issue notices of intent to administratively withdraw incomplete license applications if information isn't provided within 30 days.
• Section 19 sets minimum net worth and liquidity levels for mortgage brokers ($50,000 net worth) and mortgage lenders ($100,000 net worth plus $1 million liquidity, or Federal Housing Finance Agency standards for covered servicers).
• Section 20 requires mortgage lenders and brokers to maintain a board of directors, written corporate governance framework, internal audit requirements, and an annual risk management assessment.
• Section 4 revises credit union incorporation filings to list subscribers' and directors' counties of residence instead of street addresses in public notices.
• Section 25 changes foreign bank relocation notice from optional ('may') to mandatory ('shall') for existing Georgia branches or agencies.
• Section 33 revises background check and criminal history procedures for merchant acquirer limited purpose banks and their employees.
• Section 36 repeals all laws in conflict with the Act.

1. 2025-05-14Effective Date 2025-07-01
2. 2025-05-14Act 250
3. 2025-05-14House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-10Senate Passed/Adopted (Senate)
6. 2025-03-10Senate Third Read (Senate)
7. 2025-02-20Senate Read Second Time (Senate)
8. 2025-02-19Senate Committee Favorably Reported (Senate)

• Bruce Williamson (R, HD-112)Primary sponsor
• Noel Williams (R, HD-148)
• Demetrius Douglas (D, HD-078)
• Robert Dickey (R, HD-134)
• Jason Ridley (R, HD-006)
• Jaclyn Ford (R, HD-170)
• John Kennedy (R, SD-018)

1. PassedHouse voteFebruary 12, 2025

   163 yea, 1 nay (9 not voting, 7 absent)

   Passage: House Vote #26

2. PassedSenate voteMarch 10, 2025

   46 yea, 1 nay (1 not voting, 8 absent)

   Passage: Senate Vote #222

• banking regulation
• mortgage lending
• credit unions
• financial licensing
• consumer finance