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Question:

I read something recently about updates to Georgia’s background check requirements for lenders licensed in Georgia.  What’s changed?

Answer:

Georgia (GA) recently updated its requirements with regard to pre-hire employment background checks to add a requirement to check the NMLS Consumer Access, in addition to the GA Department of Banking and Finance’s (Department) website for public records related to the prospective hire.  All employee files (not just employees working in GA or on GA loan files) must contain proof that both of these searches were run prior to hire in the form of a screen shot or print out.

Any licensee that fails to examine the Department’s website and NMLS Consumer Access prior to employment in order to confirm employment eligibility may be subject to a fine of $1,000 for each violation.

For the Department search, a mortgage company should visit https://dbf.georgia.gov/mortgage-information-and-searches and click on “Mortgage Administrative Actions” to run the search.

Separately, there is an additional Georgia-specific search that must be run on “covered employees.”  Covered employees include those employees who physically work in the state of Georgia and who may enter, delete, or verify any information on any mortgage loan application form or document.  For these individuals, Georgia requires background checks be run through the Georgia Crime Information Center (GCIC).  Please see https://dbf.georgia.gov/sites/dbf.georgia.gov/files/related_files/document/GA-Employee-Background-Checks.pdf for more information.

It is also important to note that Georgia maintains a strict prohibition against employing any individual with a felony.  GA imposes this prohibition without time restrictions and extends it to all employees, whether or not the employee is located in GA or works on GA loans.  Failure to abide by this restriction may result in suspension or revocation of a mortgage company’s GA lender license.