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.
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- Frederick Douglass
My Opinion Only.