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#703622 - 03/20/07 04:21 PM GRMA Fee
DinkD Offline
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DinkD
Joined: May 2001
Posts: 117
Georgia
Org. loan is a construction loan only......

Construction is complete, loan is renewed/refinanced as a temporary/bridge loan; same org. deed cited as security, no modification recorded to the deed; would we collect the 6.50 fee? Thanks.

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#703696 - 03/20/07 05:51 PM Re: GRMA Fee DinkD
waldensouth Online
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waldensouth
Joined: Nov 2001
Posts: 7,981
FINALLY ABOVE the gnat line
As I understand it, the $6.50 is collected whenever you file a DSD.
_________________________
"Once you learn to read, you will be forever free."

- Frederick Douglass




My Opinion Only.

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#703759 - 03/20/07 07:31 PM Re: GRMA Fee waldensouth
DinkD Offline
100 Club
DinkD
Joined: May 2001
Posts: 117
Georgia
Thank you.. That was my understanding however in the Article 13 7-1-1000(13)it indicates something about the refinancing or renewal of a note secured by a deed? I would think that would have been referring to a modification of the deed tied to that note. Do you know what that particular statement is referring to?

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#704770 - 03/22/07 01:40 AM Re: GRMA Fee DinkD
Jan94 Offline
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Joined: Mar 2001
Posts: 828
USA
Look at the second sentence in paragraph (a) below. If the deed is modified and recorded, then it appears the $6.50 fee is due.

80-5-1-.04 Levy, Collection and Remittance of Georgia Residential Mortgage Act Per Loan Fee. Amended.
(a) Each borrower who obtains a mortgage loan as defined in Article 13 shall pay to the department a per loan fee of $6.50. The $6.50 fee will be due if the loan is a residential mortgage loan as defined in the Georgia Residential Mortgage Act, and if a security deed, a modification of a security deed, or other form or modification of a security interest is recorded. A change to a security instrument made solely for the purpose of correcting a clerical error will not be subject to a $6.50 fee."(left off the rest of this paragraph).

My reading of the definition of mortgage loan would appear to indicate that a renewal of the loan if secured by a 1-4 family residential property, would be subject to the $6.50 fee. So either way, modification of the deed (if recorded) or renewal of the loan/note the $6.50 is due.

(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.

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#704845 - 03/22/07 01:07 PM Re: GRMA Fee Jan94
waldensouth Online
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waldensouth
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Posts: 7,981
FINALLY ABOVE the gnat line
As published in the GA DBF newsletter in 2002:

Per Loan Fee ($6.50 fee) on Georgia Residential Real Estate Loans
We have become aware that there may be confusion regarding the per loan fee to be paid by the secured party on each security deed filed in connection with a residential real estate mortgage loan as required by O.C.G. A. Section 7-1-1011 and Rule 80-5-1 of the Departmentís Rules and Regulations.
The Georgia Residential Mortgage Act (GRMA) defines a mortgage loan as 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. The $6.50 fee will be due if the loan is a residential mortgage loan as defined in the Georgia Residential Mortgage Act, and if a security deed, a modification of a security deed, or other form or modification of a security interest is recorded. Second homes and rental property are excluded. In addition, a change to a security instrument made solely for the purpose of correcting a clerical error will not be subject to a $6.50 fee.
The purpose of the loan or the use of the proceeds has no bearing in regard to the definition of a residential mortgage loan. The taking of a security deed on residential real property located in Georgia is the key determinant.
Once you are aware of the above definitions we believe that it becomes a relatively simple matter to determine the types of loans which are covered by the requirement to pay the per loan fee. The determination that a loan is covered can be made by answering two questions:
1. Is the loan in question a residential mortgage loan as defined in GRMA?
2. Was a new security deed or a security deed modification agreement recorded to perfect the lender's security interest in the Georgia residential real property?
If the answer to both of these questions is yes, the per loan fee must be paid.
_________________________
"Once you learn to read, you will be forever free."

- Frederick Douglass




My Opinion Only.

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