SB 57
Highlights include:
* A creditor shall not make a home loan unless a reasonable creditor would believe at the time the loan is consummated that the borrower will be able to make the scheduled payments.
* A mortgage broker shall, before closing, notify each lender in writing of the particulars of each of the other lenders' home loans, disclose to the borrower in writing the dollar amounts and sources of all compensation the mortgage broker has received and disclose to the borrow all material information.
* No prepayment charge shall be assessed or collected under the terms of a home loan.
HB 972
Highlights include:
* Notice shall be given to the debtor by the secured creditor no later than 90 days before the date of the proposed foreclosure.
* The debtor shall have a right to cure the foreclosure by paying the creditor the full amount of past due payments along with any late fees and charges so as to bring the debt current.
By Ashley Speagle
Correspondent
ATLANTA -- Legislators are discussing changes to the Georgia Fair Lending Act that would make mortgage brokers more liable for loans that borrowers cannot repay.
On Monday, a House Judiciary Civil Subcommittee heard testimony on Senate Bill 57, sponsored by Sen. Bill Hamrick, R-Carrollton, which senators passed last session.
Sen. Hamrick's bill would require that home loans do not include extra fees for advance payments made before interest accumulates, do not accumulate interest on debt and ban what are known as "yield spread premiums."
When brokers buy a loan at wholesale, they sell it at a higher price to borrowers, and this extra money often serves as compensation to the broker, money called yield spread premiums, said Rep. Tom Weldon, R-Ringgold.
"The yield spread premiums are the ones that most folks are talking about," said Uriah King, a senior policy associate for the Center for Responsible Lending.
Mr. King said yield spread premiums are supposed to offset other fees, but he said studies show that the premiums correlate to higher repayment on loans.
"It's not a valid argument to say that those people will pay less if the yield spread premium can't be out there," Rep. Weldon said.
The bill also would require creditors to review a person's ability to repay a loan prior to lending money and require mortgage brokers to disclose more information to lenders and borrowers.
On Monday, the committee also looked at new legislation, House Bill 972, sponsored by Rep. Billy Mitchell, D-Stone Mountain.
The bill would require that people facing foreclosure receive notification 90 days prior to the foreclosure, instead of the current 30 days.
It would also allow those given foreclosure notice the opportunity to pay all the debt and resume their regular payments. They may do so once every two years and up to three times total in their mortgage contract, the bill states.
The subcommittee will discuss the separate issues in both bills on Feb. 16.
Perhaps your just a teeny tiny bit late on this one boys and girls!!! Also there seems to be quite a bit more to this issue than you suggest would correct the real problem. Keep up the GOOD WORK!! And don't forget to give yourselves a raise while your at it. You may need the extra money after the next two election cycles. I'm just sayin!!!
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