I was reading some posts about the GRMA fee and am still puzzeled - The fee applies to a loan that is given to a Natural person. Right? - so if the loan is made to an LLC but a natural person will be occupying the property we would not collect or send to the State. Right?

We have a situation where the borrower is an LLC but there is a natural person as co-borrower who will be living in the property. Would this be considered a GRMA loan?
Thx

Since one of the borrowers is a natural person who will occupy as a PR..I would say it is subject to the fee.

so the GRMA fee has nothing to do with occupying the property; it's because a natural person is a co-borrower. right?

No...as mentioned, because the natural person involved will occupy as a PR, the fee applies.

Definition of Residential property for GRMA is: Improved real property used or occupied, or intended to be occupied, as the principal residence of a natural person.

Please excuse my ignorance - but, is the 'natural person' the person involed in the transaction?

And - If the loan is to a LLC and guaranteed by a 'natural person' secured by his residence whereby we take a mortgage would that loan be subject to GRMA?

I do not believe it would apply if the natural person is a guarantor...but you originally stated they would be a co-borrower and in that case I believe it would definitely apply.

From the below information my interpretation is we collect if the loan is in the name of a "natural person" and it's secured with their "primary residence" only. This does not include construction loans unless you are doing a construction to perm all in one loan, and it does not include rental property or second homes.

80-5-1-.04 Levy, Collection, Remittance and Refunds of Georgia Residential Mortgage Act Per Loan Fee

Each borrower who obtains a mortgage loan as defined in O.C.G.A. § 7-1-1000(21) shall pay to the department a per loan fee of $10.00.

O.C.G.A. 7-1-1000. Definitions:

(21) '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

29) "Residential property" means improved real property used or occupied, or intended to be used or occupied, as the primary residence of a natural person.

Such term does not include rental property or second homes. A natural person can have only one primary residence.

Under GA Code I can't seem to find the definition for "Natural Person" (only individual or person); however, the legal definition states that a "Natural Person" is a real human being, as distinguished from a corporation which is often treated as a fictitious person.

Hope this helps. : )

Is it possible for you to share with me the GRMA Q&As?

Thanks in advance.