Georgia Bankers Association
Resources for Better Performance

Summary of Provisions
Georgia Fair Lending Act
2003 Amendments

Governor Sonny Perdue signed S.B. 53 on March 7, 2003 and the bill became effective immediately.  Following is a summary of the provisions in the Act.  

• Synchronizes state and federal law as to definitions of commonly used terms such as ‘variable rate loan’, ‘annual percentage rate’, ‘points and fees’, ‘bridge loan’ and ‘total loan amount’
• Eliminates the mid-priced category of loans, ‘covered loans’, from the Act (rate of 8.25% or points and fees of 3%)
• Allows pass-through fees on VA, FHA and other similar federal and state home loan programs to be exempted from the ‘points and fees’ calculation
• Flipping provision applies to ‘high-cost’ loans
• Adds remainder of language from North Carolina predatory lending bill to give borrowers and lenders an equitable method for resolving flipping disputes
• Removes the prohibition preventing Georgia Housing Finance Authority loans from being refinanced
• Clarifies that legitimate late payment fees may be assessed based on the actions of the borrower rather than allowing only one late payment fee throughout the term of a loan
• Exempts traditional loans from the Act (tax-advantaged consumer loans, bridge loans and loans to acquire land)
• Clarifies that monthly-pay credit insurance may be purchased
• Gives borrowers 5 years from loan consummation to bring action against lender
• Caps assignee and purchaser liability on high-cost loans to the value of the loan plus costs and attorneys’ fees
• Gives Banking Department power to issue rules and regulations and gives lenders the ability to rely on the Department’s interpretations
• Gives parity to state-chartered institutions with similar federally-chartered institutions

The significant consumer protections contained in the original act remain in the amended bill:  class actions, statutory damages and other remedies.