Georgia Governor Updates Legislation Impacting Banking and Financial Services Industries

Georgia Gov. Brian Kemp recently signed legislation that will impact the banking and financial services industries in the state. It becomes effective July 1, 2025. The Georgia General Assembly adjourned the 2025 legislative session in April, the first session in the two-year legislative term. Legislation that did not pass the 2025 session will be available for consideration throughout the 2026 legislative session, which will convene in January.

Department of Banking Housekeeping Bill

House Bill (HB) 15 by Rep. Bruce Williamson (R-Monroe) is the annual update to the language in Title 7 of the Official Code of Georgia related to the entities regulated by the Georgia Department of Banking and Finance (Department). The bill aims to modernize and streamline regulatory provisions for banks, credit unions, mortgage lenders and brokers, money transmitters and foreign banking institutions. Key provisions include:

• Credit union incorporation procedures
  • mandate that credit union applications demonstrate public need and adequate capital structure
  • allow the Department to defer action on applications pending federal approval under certain circumstances
• Licensure and compliance enhancements
  • defines disqualifying crimes for licensure applicants, including Georgia felony convictions within the past seven years
  • permit the Department to deny or revoke licenses based on such convictions
• Mortgage lending and brokering oversight
  • requires mortgage brokers to submit annual unaudited financial statements, with the option to provide audited statements
  • empowers the Department to request audited statements if deemed necessary
  • establishes capital, net worth and liquidity requirements tailored to the type of mortgage lender or servicer
• Background check revisions
  • allow the use of commercial background checks in lieu of Georgia Crime Information Center checks and fingerprints
  • grant the Department authority to review applicant files to ensure proper background checks have been conducted
• Foreign banking institutions
  • update procedures for applications to relocate foreign banking institutions within Georgia
  • include provisions for merchant acquirer limited purpose banks

"Trigger Leads" Reform

HB 240 by Rep. Noel Williamson (R-Cordele) prohibits unfair or deceptive practices in consumer transactions related to mortgage trigger leads. Mortgage trigger leads occur when a consumer applies for a mortgage, which prompts credit reporting agencies to sell the consumer's information to other lenders. This often results in unsolicited communications from competing lenders, which can be misleading and invasive. Mortgage borrowers have been overwhelmed with confusing messages from other lenders after the bank has made a loan offer and requested a credit report from the reporting agencies. Though this legislation still permits agencies to sell information to other lenders, it imposes guardrails to prevent the misuse of that information. Key provisions include:

• Prohibition of Misleading Solicitations. Mortgage lenders and brokers are prohibited from failing to disclose in initial solicitations that they are not affiliated with the lender with whom the consumer initially applied.
• Compliance with Prescreened Solicitation Laws. Solicitations must conform to applicable laws relating to prescreened offers using consumer reports.
• Respect for Consumer Preferences. The use of information from consumers who have opted out of prescreened offers of credit or who are on the federal do-not-call registry is prohibited.
• Ban on Bait-and-Switch Tactics. Soliciting consumers with offers of certain rates and terms, while knowing that those rates and terms would subsequently change to the consumer's detriment, is prohibited.

Intangible Recording Tax

HB 586 by Rep. Bruce Williamson (R-Monroe) amends Georgia's intangible recording tax laws. The bill extends the term of loans that are exempt from the state's intangible recording tax from more than 36 months to more than 62 months. It also updates requirements for real estate liens and seller-financed transactions to reflect the new 62-month term.

Senate Study Committee

The Georgia Senate adopted the Artificial Intelligence and Digital Currency Study Committee. Senate Resolution 391 by Sen. John Albers (R-Roswell) establishes a Senate committee to study issues related to the misuse of digital and cryptocurrency and the unintended consequences of its mass adoption without the development of standards and safeguards. The committee will meet throughout the interim and recommend legislation.

The following legislation did not pass the General Assembly in the 2025 legislative session but is pending for further consideration in January:

• "Debanking." Senate Bill (SB) 57 by Sen. Blake Tillery (R-Vidalia) seeks to prevent discrimination in the provision of essential financial services based on individuals' exercise of their constitutional rights. The bill applies to any bank or credit union with more than $1 billion in total assets and any payment processor processing more than $1 billion in transactions in a 12-month span. The legislation introduces the concept of a "social credit score" encompassing a wide range of factors such as speech, association and even participation in lawful business activities. The bill creates a new private right action with significant financial penalties for violations.
  • SB 341 by Sen. Tillery is an updated version of SB 57. SB 341 increases the asset threshold for covered banks from $1 billion to $2 billion and includes an investigatory role for the state Attorney General's office. Language establishing a new private right of action remains in the bill.
• Interchange Fees. HB 431 by Rep. Todd Jones (R-North Fulton) amends the Fair Business Practices Act of 1975 to prevent payment card networks from applying interchange fees on any amount greater than the price a consumer pays for a good or service. This would effectively prohibit interchange on the sales tax portion of debit or credit card transactions.
• Bankruptcy Exemptions. SB 87 by Sen. Ed Setzler (R-Acworth) exempts the full value of a debtor's primary residence from levy and sale under state law and for bankruptcy purposes.
• Fiduciary Powers, Trusts and Investments. HB 327 by Rep. Rob Leverett (R-Elberton) makes several amendments to Title 7 related to banks and financial institutions, particularly regarding fiduciary responsibilities, trust administration and investment regulations.

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