Georgia, New Jersey Implement SAFE Act

On May 4, New Jersey Governor Jon Corzine signed AB 3816, the “New Jersey Residential Mortgage Lending Act,” and, on April 29, Georgia Governor Sonny Perdue signed HB 312. The bills reflect compliance with the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) by providing for the licensing of all mortgage loan originators under the Nationwide Mortgage Licensing System. In addition to technical amendments, the bills prescribe loan originator requirements regarding, among other things, licensing, prior and continuing education, testing, minimum net worth, and surety bonds. Georgia HB 312 becomes effective July 1, 2009; most provisions of New Jersey AB 3816 become effective immediately, with remaining sections taking effect July 31, 2010.