February 29, 2008  

More Foreclosure Bills Introduced - Hearing Process Begun
Two foreclosure bills were considered in separate hearings this before senate committees.  The Senate Banking and Financial Institutions Committee considered S.B. 465 by Sen. Emanuel Jones (D-Decatur) and others that would extend the foreclosure process to 90 days and requires a new notice which would give the borrower information about the loan balance and the name of an individual with whom the borrower can negotiate a settlement to avoid foreclosure.  Joint testimony was given by the Georgia Bankers Association, Community Bankers Association of Georgia and the Georgia Credit Union Affiliates.  In his comments, GBA President Joe Brannen warned the committee that passing such a bill could actually result in foreclosures occurring earlier as lenders may not be willing to wait as long as they currently do before filing formal foreclosure action.  No action was taken in Committee.  The Senate Judiciary Committee also held a hearing this week on S.B. 459 by Sen. Kasim Reed (D-Atlanta) and Senate President Pro Tem Eric Johnson (R-Savannah) and others.  The bill provides that real estate sales made under power of sale contained in mortgages, deeds, or other lien contracts shall be advertised weekly for ten weeks.    Joint testimony was also given by the three associations expressing concern about unintended consequences that could arise from the bill.  Sen. John Wiles (R-Marietta) was helpful to the committee in modifying the bill so that it would apply to residential foreclosures and the advertising would still be required for 10 weeks, but the notices would run every other week.  The bill was reported out of committee and awaits action in the Senate Rules Committee.  Sen. Bill Cowsert (R-Athens) voted against the bill and in support of our position to further study longer term impacts.  Other foreclosure bills have been introduced including one by Senate Banking and Financial Institutions Chairman, Bill Hamrick (R-Carrollton).  His bill, S.B. 519, would essentially add two weeks to the foreclosure process by requiring notice to the borrower two weeks prior to beginning the required four-week advertising process.  In the case of loans with prepayment penalties, the bill requires a 90-day notice prior to beginning advertisement.
Committee Passes Deed Bill   Uniform Act Passes House
The House Judiciary Committee has reported legislation sponsored at GBA's request by committee chairman Wendell Willard (R-Sandy Springs).  The bill, H.B. 1093, clarifies the notification provisions for liquidated damages resulting from the failure to cancel a security deed within the current 60 day period.  The bill addresses the underlying problems we are resolving which have resulted in nine class action law suits against Georgia lenders.    Representative Steve Tumlin GBA has been following H.B. 972 by Rep. Steve Tumlin (R-Marietta) and others.  The legislation would adopt the "Uniform Prudent Management of Institutional Funds Act" which provides standards for charities to use in managing investments and spending from endowments and other rules regarding the management institutional funds.  The bill was passed by the House this week and has been sent to the Senate for further action.

Appraisal Bill Reported

   Motor Vehicle Seizure Bill Passes
 S.B. 496 by Sen. Horacena Tate (D-Atlanta) and others was reported out of the Senate Banking and Financial Institutions Committee this week.  The bill amends the appraisal statute so as to prohibit the solicitation or facilitation of the fraudulent appraisal of the value of property offered as security for a mortgage or loan.  The exact language of the new prohibition language being added is “Knowingly compensate, instruct, induce, coerce, or intimidate or to attempt to compensate, instruct, induce, coerce, or intimidate an appraiser for the purpose of corrupting or improperly influencing the independent judgment of such appraiser with respect to the value of property offered as security for the repayment of a mortgage or loan."   The House passed legislation this week introduced by the Chairman of the House Banks and Banking Committee, James Mills (R-Gainesville).  The bill, H.B. 978,  would require the seizure of vehicles involved in accidents or stopped for violations and driven by individuals who could not prove their legal status for being in the country.  The bill has been modified substantially from the original bill to make it easier for lienholders to retrieve their vehicles that have been seized as long as the lienholder was not aware the driver was undocumented.  Our thanks to Chairman Mills for continuing to make the bill more palatable.  The bill now goes to the full Senate where we expect further action in the near future.
Boat Titling Bill Stalls   Wire Transfer Bill in Committee
Representative John HeardThe House began debate on H.B. 1000 by Rep. John Heard (R-Lawrenceville) and others that would create a new titling procedure for certain watercraft.  Rep. Heard, a boat dealer, has emphasized the importance of having a better tracking procedure for motorized watercraft and we appreciate his efforts.  The bill was amended in committee to reduce the number of boats requiring a title, mostly small pleasure boats with small motors and boats which will only be used on private property. There were a number of questions members had about the legislation and the bill was returned to Committee for further action.    Representative Tom RiceA subcommittee of the House Ways and Committee met this week to consider legislation introduced by Rep. Tom Rice (R-Peachtree Corners) that will require certain issuers of international wire transfers to collect an additional 2% fee on each wire.  The bill as introduced did not include our members among the institutions required to collect the fee.  Rep. Rice presented a substitute that would have included our members, but the subcommittee chose to defer action on the bill, H.B. 1028. In conversations with GBA staff, Rep. Rice has agreed to remove financial institutions from his substitute. 

Contact GBA Staff Lobbyists With Questions

GBA's three lobbyists will be onsite at the Capitol all session to be available to legislators and staff as questions arise about the various bills that may affect the banking industry.  If you have questions about any legislation pending, please call on these professionals for their help.  Also, GBA's State Issues Page of our website will be updated daily during the session.

  

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