Georgia’s Proposed Mortgage Rulemaking: What Lenders Need to Know

What’s Happening? Georgia Issues Notice of Proposed Rulemaking

The Georgia Department of Banking and Finance has issued a Notice of Proposed Rulemaking under the Georgia Administrative Procedure Act (O.C.G.A. § 50-13-1 et seq.). The notice, published on May 13, 2026, invites public comment on new rules the Department intends to adopt for mortgage lenders and other financial entities.

Key dates:

• Comment period opens: May 13, 2026, at 8:00 a.m.
• Comment period closes: June 12, 2026, at 4:30 p.m.
• How to participate: Visit the Department’s website at DBF Regulations to review the proposed rules and submit comments.

This proposed rulemaking follows a separate Final Rulemaking adopted on October 2, 2025, which took effect October 22, 2025. While that earlier action addressed certain banking and lending standards, this new proposal signals further regulatory evolution for the Georgia mortgage industry.

Why This Proposed Rulemaking Matters for Mortgage Lenders

Even without full rule text, a proposed rulemaking is a critical compliance signal. Georgia-chartered banks, mortgage lenders, brokers, and servicers may face new requirements that affect:

• Licensing and operational standards
• Consumer protection disclosures
• Recordkeeping and reporting obligations
• Escrow account practices (as seen in recent federal preemption discussions)

By engaging early, lenders can shape the final rules and avoid last-minute scrambles. Ignoring the proposal, however, risks enforcement actions down the line—something the Department has shown it will pursue, as evidenced by recent cease-and-desist orders against unauthorized banking operations.

How Georgia’s Administrative Procedure Act Works

Georgia’s rulemaking process is governed by the Georgia Administrative Procedure Act (APA). Understanding this process helps lenders anticipate what’s next.

The APA Rulemaking Cycle

1. Notice of Proposed Rulemaking: The agency publishes a notice with proposed rule language, statutory authority, and a comment period (typically at least 30 days).
2. Public Comment: Any interested person may submit written comments. The agency must consider all timely comments.
3. Final Rulemaking: After the comment period, the agency may adopt the rules as proposed, modify them, or withdraw them. A Notice of Final Rulemaking is published, and rules are filed with the Secretary of State.
4. Effective Date: Final rules become effective 20 days after filing (unless otherwise specified). For example, the Department’s October 2025 final rules were effective October 22, 2025.

What to Watch For

If the proposed rules affect mortgage lending, they will likely amend Title 7 of the Georgia Code (Banking and Finance) or Department regulations. Lenders should monitor the Department’s website and consider setting up alerts for updates.

Using a platform like Reglith that automates regulatory tracking can help you catch these changes without manually searching for updates.

Key Steps to Take During the Comment Period

1. Review the Proposed Rules Thoroughly

Download the proposal from the Department’s regulations page. Focus on sections that directly affect your lending operations, such as licensing, underwriting, escrow, or advertising rules.

2. Assess Operational Impact

Form an internal compliance review team. Map the proposed changes to your current policies and procedures. Identify gaps that would require system updates, staff training, or vendor adjustments.

3. Draft and Submit Comments

Written comments can shape the final rule. Make your comments specific, data-driven, and constructive. Address:

• Unintended consequences
• Compliance burdens
• Suggested alternatives
• Clarity and consistency with federal law

Submit comments by June 12, 2026, 4:30 p.m. via the method specified on the Department’s website.

4. Engage with Industry Groups

Trade associations often submit collective comments. Join the conversation through organizations like the Georgia Bankers Association or Mortgage Bankers Association of Georgia to amplify your voice.

Preparing Your Compliance Roadmap

While the final rule may differ from the proposal, you can start preparing now:

• Audit your current compliance program against general regulatory trends. This includes reviewing your UDAAP risks—unfair, deceptive, or abusive acts or practices—since consumer protection remains a priority. Our UDAAP guide can help.
• Update your compliance calendar with all upcoming mortgage-related state and federal deadlines. A proactive approach prevents oversights. See our step-by-step guide to building a 2027 compliance calendar.
• Review licensing requirements for every state you operate in. Georgia’s proposed rules may cross-reference or deviate from multi-state standards. Our state-by-state licensing guide covers the essentials.
• Monitor escrow interest rules. The recent OCC preemption on state interest-on-escrow laws could influence Georgia’s approach. Understand the federal backstop discussed in our OCC preemption article.
• Strengthen your change-management process. Designate a compliance officer to track rulemaking, coordinate comments, and implement any changes on time.

For lenders managing multiple state obligations, automating regulatory monitoring is a practical solution. Reglith helps you track, interpret, and implement mortgage regulation changes across all jurisdictions—so you can focus on serving borrowers.

Key Takeaways

• The Georgia Department of Banking and Finance has opened a comment period for new rules affecting mortgage lenders, closing June 12, 2026.
• While specific rule text is not yet public, lenders should review the proposal promptly and consider submitting comments.
• The rulemaking follows the Georgia Administrative Procedure Act process: proposal, comment, final adoption, and a 20-day effective delay.
• Proactive steps now—like auditing UDAAP compliance, updating licensing, and building a robust compliance calendar—will ease eventual implementation.
• Engaging with industry groups and using regulatory monitoring tools can reduce the burden of staying current with evolving requirements.