Title 7, Chapter 1, Section 1000
As used in this article, the term:
(1) "Affiliate" or "person affiliated with" means, when used with
reference to a specified person, a person who directly,
indirectly, or through one or more intermediaries controls, is
controlled by, or is under common control with the person
specified. Any beneficial owner of 20 percent or more of the
combined voting power of all classes of voting securities of a
person or any executive officer, director, trustee, joint
venturer, or general partner of a person is an affiliate of such
person unless the shareholder, executive officer, director,
trustee, joint venturer, or general partner shall prove that he or
she in fact does not control, is not controlled by, or is not
under common control with such person.
(2) "Audited financial statement" means the product of the
examination of financial statements in accordance with generally
accepted auditing standards by an independent certified public
accountant or by an independent Georgia registered public
accountant considered acceptable by the department, which product
consists of an opinion on the financial statements indicating
their conformity with generally accepted accounting principles.
(3) "Commitment" or "commitment agreement" means a statement by a
lender required to be licensed or registered under this article
that sets forth the terms and conditions upon which the lender is
willing to make a particular mortgage loan to a particular
(4) "Control," including "controlling," "controlled by," and
"under common control with," means the direct or indirect
possession of the power to direct or cause the direction of the
management and policies of a person, whether through the ownership
of voting securities, by contract, or otherwise.
(5) "Executive officer" means the chief executive officer, the
president, the principal financial officer, the principal
operating officer, each vice president with responsibility
involving policy-making functions for a significant aspect of a
person's business, the secretary, the treasurer, or any other
person performing similar managerial or supervisory functions with
respect to any organization whether incorporated or
(6) "Extortionate means" means the use or the threat of violence
or other criminal means to cause harm to the person, reputation of
the person, or property of the person.
(6.1) "Georgia Residential Mortgage Act" means this article.
(7) "License" means a license issued by the department under this
article to act as a mortgage lender or mortgage broker.
(8) "Lock-in agreement" means a written agreement whereby a lender
or a broker required to be licensed or registered under this
article guarantees for a specified number of days or until a
specified date the availability of a specified rate of interest
for a mortgage loan, a specified formula by which the rate of
interest will be determined, or a specific number of discount
points if the mortgage loan is approved and closed within the
stated period of time.
(9) "Makes a mortgage loan" means to advance funds, offer to
advance funds, or make a commitment to advance funds to an
applicant for a mortgage loan.
(10) "Misrepresent" means to make a false statement of a
substantive fact or to engage in, with the intent to deceive or
mislead, any conduct which leads to a false belief which is
material to the transaction.
(11) "Mortgage broker" means any person who directly or indirectly
solicits, processes, places, or negotiates mortgage loans for
others, or offers to solicit, process, place, or negotiate
mortgage loans for others or who closes mortgage loans which may
be in the mortgage broker's own name with funds provided by others
and which loans are assigned within 24 hours of the funding of the
loans to the mortgage lenders providing the funding of such loans.
(12) "Mortgage lender" means any person who directly or indirectly
makes, originates, or purchases mortgage loans or who services
(13) "Mortgage loan" means 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 any such loan.
(14) "Person" means any individual, sole proprietorship,
corporation, limited liability company, partnership, trust, or any
other group of individuals, however organized.
(15) "Registrant" means any person required to register pursuant to Code Sections 7-1-1001 and 7-1-1003.2.
(16) "Residential property" means improved real property used or
occupied, or intended to be used or occupied, as the principal
residence of a natural person. Such term does not include rental
property or second homes.
(17) "Service a mortgage loan" means the collection or remittance
for another or the right to collect or remit for another of
payments of principal, interest, trust items such as insurance and
taxes, and any other payments pursuant to a mortgage loan.
(18) "Ultimate equitable owner" means a natural person who,
directly or indirectly, owns or controls an ownership interest in
a corporation or any other form of business organization,
regardless of whether such natural person owns or controls such
ownership interest through one or more natural persons or one or
more proxies, powers of attorney, nominees, corporations,
associations, limited liability companies, partnerships, trusts,
joint-stock companies, other entities or devices, or any