25 LC 52 0713
House Bill 240
By: Representatives Williams of the 148
th
, Ridley of the 6
th
, Rhodes of the 124
th
, Douglas of
the 78
th
, Hilton of the 48
th
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Part 2 of Article 15 of Chapter 1 of Title 10 and Article 13 of Chapter 1 of Title 7
1
of the Official Code of Georgia Annotated, relating to the Fair Business Practices Act and2
licensing of mortgage lenders and mortgage brokers, respectively, so as to prohibit unfair or3
deceptive practices in consumer transactions related to mortgage trigger leads; to provide for4
definitions; to provide for a remedy; to provide for related matters; to provide for an effective5
date; to repeal conflicting laws; and for other purposes.6
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7
SECTION 1.8
Part 2 of Article 15 of Chapter 1 of Title 10 of the Official Code of Georgia Annotated,9
relating to the Fair Business Practices Act, is amended by adding a new Code section to read10
as follows:11
"10-1-393.20.
12
(a) As used in this Code section, the term:13
(1) 'Mortgage broker' shall have the same meaning as set forth in Code Section 7-1-1000.14
(2) 'Mortgage lender' shall have the same meaning as set forth in Code Section 7-1-1000.15
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(3) 'Mortgage trigger lead' means a consumer report obtained pursuant to16
Section 604(c)(1)(B) of the federal Fair Credit Reporting Act, 15 U.S.C. Section 1681b,17
where the issuance of the report is triggered by an inquiry made with a consumer18
reporting agency in response to an application for credit. Such term shall not include a19
consumer report on an applicant obtained by a mortgage lender or mortgage broker with20
which the applicant has initially applied for credit or which holds or services an existing21
extension of credit of the applicant who is the subject of the report.22
(b) When using a mortgage trigger lead to solicit a consumer who has applied for a loan23
with another mortgage lender or mortgage broker, it shall be an unfair or deceptive act or24
practice to:25
(1) Fail to state in the initial solicitation that the person is not affiliated with the26
mortgage lender or mortgage broker with which the consumer initially applied;27
(2) Fail in the initial solicitation to conform to state and federal law relating to28
prescreened solicitations using consumer reports, including the requirement to make a29
firm offer of credit to the consumer;30
(3) Use information regarding consumers who have opted out of the prescreened offers31
of credit or who have placed their contact information on the federal do-not-call registry;32
or33
(4) Solicit a consumer with an offer of certain rates, terms, and costs with the knowledge34
that the rates, terms, or costs will be subsequently changed to the detriment of the35
consumer.36
(c) Failure to comply with the provisions of this Code section shall be considered an unfair37
or deceptive act or practice which is unlawful and shall therefore be punishable by the38
provisions of this part."39
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SECTION 2.
40
Article 13 of Chapter 1 of Title 7 of the Official Code of Georgia Annotated, relating to41
licensing of mortgage lenders and mortgage brokers, is amended in Code Section 7-1-1013,42
relating to prohibition of certain acts, by revising paragraphs (10) and (11) and by adding a43
new paragraph to read as follows:44
"(10) Provide an extension of credit or collect a mortgage debt by extortionate means;45
or
46
(11) Purposely withhold, delete, destroy, or alter information requested by an examiner47
of the department or make false statements or material misrepresentations to the48
department or the Nationwide Multistate Licensing System and Registry or in connection49
with any investigation conducted by the department or another governmental agency; or50
(12) Engage in unfair or deceptive acts or practices in violation of Code51
Section 10-1-393.20."52
SECTION 3.53
This Act shall become effective upon its approval by the Governor or upon its becoming law54
without such approval.55
SECTION 4.56
All laws and parts of laws in conflict with this Act are repealed.57
H. B. 240
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