| 3 | 3 | | By: Representatives Williams of the 148 |
|---|
| 4 | 4 | | th |
|---|
| 5 | 5 | | , Ridley of the 6 |
|---|
| 6 | 6 | | th |
|---|
| 7 | 7 | | , Rhodes of the 124 |
|---|
| 8 | 8 | | th |
|---|
| 9 | 9 | | , Douglas of |
|---|
| 10 | 10 | | the 78 |
|---|
| 11 | 11 | | th |
|---|
| 12 | 12 | | , Hilton of the 48 |
|---|
| 13 | 13 | | th |
|---|
| 14 | 14 | | , and others |
|---|
| 15 | 15 | | A BILL TO BE ENTITLED |
|---|
| 16 | 16 | | AN ACT |
|---|
| 17 | 17 | | To amend Part 2 of Article 15 of Chapter 1 of Title 10 and Article 13 of Chapter 1 of Title 7 |
|---|
| 18 | 18 | | 1 |
|---|
| 19 | 19 | | of the Official Code of Georgia Annotated, relating to the Fair Business Practices Act and2 |
|---|
| 20 | 20 | | licensing of mortgage lenders and mortgage brokers, respectively, so as to prohibit unfair or3 |
|---|
| 21 | 21 | | deceptive practices in consumer transactions related to mortgage trigger leads; to provide for4 |
|---|
| 22 | 22 | | definitions; to provide for a remedy; to provide for related matters; to provide for an effective5 |
|---|
| 23 | 23 | | date; to repeal conflicting laws; and for other purposes.6 |
|---|
| 24 | 24 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 |
|---|
| 25 | 25 | | SECTION 1.8 |
|---|
| 26 | 26 | | Part 2 of Article 15 of Chapter 1 of Title 10 of the Official Code of Georgia Annotated,9 |
|---|
| 27 | 27 | | relating to the Fair Business Practices Act, is amended by adding a new Code section to read10 |
|---|
| 28 | 28 | | as follows:11 |
|---|
| 29 | 29 | | "10-1-393.20. |
|---|
| 30 | 30 | | 12 |
|---|
| 31 | 31 | | (a) As used in this Code section, the term:13 |
|---|
| 32 | 32 | | (1) 'Mortgage broker' shall have the same meaning as set forth in Code Section 7-1-1000.14 |
|---|
| 33 | 33 | | (2) 'Mortgage lender' shall have the same meaning as set forth in Code Section 7-1-1000.15 |
|---|
| 34 | 34 | | H. B. 240 |
|---|
| 36 | 36 | | (3) 'Mortgage trigger lead' means a consumer report obtained pursuant to16 |
|---|
| 37 | 37 | | Section 604(c)(1)(B) of the federal Fair Credit Reporting Act, 15 U.S.C. Section 1681b,17 |
|---|
| 38 | 38 | | where the issuance of the report is triggered by an inquiry made with a consumer18 |
|---|
| 39 | 39 | | reporting agency in response to an application for credit. Such term shall not include a19 |
|---|
| 40 | 40 | | consumer report on an applicant obtained by a mortgage lender or mortgage broker with20 |
|---|
| 41 | 41 | | which the applicant has initially applied for credit or which holds or services an existing21 |
|---|
| 42 | 42 | | extension of credit of the applicant who is the subject of the report.22 |
|---|
| 43 | 43 | | (b) When using a mortgage trigger lead to solicit a consumer who has applied for a loan23 |
|---|
| 44 | 44 | | with another mortgage lender or mortgage broker, it shall be an unfair or deceptive act or24 |
|---|
| 45 | 45 | | practice to:25 |
|---|
| 46 | 46 | | (1) Fail to state in the initial solicitation that the person is not affiliated with the26 |
|---|
| 47 | 47 | | mortgage lender or mortgage broker with which the consumer initially applied;27 |
|---|
| 48 | 48 | | (2) Fail in the initial solicitation to conform to state and federal law relating to28 |
|---|
| 49 | 49 | | prescreened solicitations using consumer reports, including the requirement to make a29 |
|---|
| 50 | 50 | | firm offer of credit to the consumer;30 |
|---|
| 51 | 51 | | (3) Use information regarding consumers who have opted out of the prescreened offers31 |
|---|
| 52 | 52 | | of credit or who have placed their contact information on the federal do-not-call registry;32 |
|---|
| 53 | 53 | | or33 |
|---|
| 54 | 54 | | (4) Solicit a consumer with an offer of certain rates, terms, and costs with the knowledge34 |
|---|
| 55 | 55 | | that the rates, terms, or costs will be subsequently changed to the detriment of the35 |
|---|
| 56 | 56 | | consumer.36 |
|---|
| 57 | 57 | | (c) Failure to comply with the provisions of this Code section shall be considered an unfair37 |
|---|
| 58 | 58 | | or deceptive act or practice which is unlawful and shall therefore be punishable by the38 |
|---|
| 59 | 59 | | provisions of this part."39 |
|---|
| 60 | 60 | | H. B. 240 |
|---|
| 62 | 62 | | SECTION 2. |
|---|
| 63 | 63 | | 40 |
|---|
| 64 | 64 | | Article 13 of Chapter 1 of Title 7 of the Official Code of Georgia Annotated, relating to41 |
|---|
| 65 | 65 | | licensing of mortgage lenders and mortgage brokers, is amended in Code Section 7-1-1013,42 |
|---|
| 66 | 66 | | relating to prohibition of certain acts, by revising paragraphs (10) and (11) and by adding a43 |
|---|
| 67 | 67 | | new paragraph to read as follows:44 |
|---|
| 68 | 68 | | "(10) Provide an extension of credit or collect a mortgage debt by extortionate means;45 |
|---|
| 69 | 69 | | or |
|---|
| 70 | 70 | | 46 |
|---|
| 71 | 71 | | (11) Purposely withhold, delete, destroy, or alter information requested by an examiner47 |
|---|
| 72 | 72 | | of the department or make false statements or material misrepresentations to the48 |
|---|
| 73 | 73 | | department or the Nationwide Multistate Licensing System and Registry or in connection49 |
|---|
| 74 | 74 | | with any investigation conducted by the department or another governmental agency; or50 |
|---|
| 75 | 75 | | (12) Engage in unfair or deceptive acts or practices in violation of Code51 |
|---|
| 76 | 76 | | Section 10-1-393.20."52 |
|---|
| 77 | 77 | | SECTION 3.53 |
|---|
| 78 | 78 | | This Act shall become effective upon its approval by the Governor or upon its becoming law54 |
|---|
| 79 | 79 | | without such approval.55 |
|---|
| 80 | 80 | | SECTION 4.56 |
|---|
| 81 | 81 | | All laws and parts of laws in conflict with this Act are repealed.57 |
|---|
| 82 | 82 | | H. B. 240 |
|---|
| 83 | 83 | | - 3 - |
|---|