February 8, 2008

Mortgage Closing Exemptions Bill Passes Senate
The Senate passed S.B. 355 this week that deals with the kinds of instruments that may be considered “good funds” under Georgia’s mortgage closing statute.  As we reported last week, the bill as introduced would have excluded official bank checks from being considered “good funds” which would essentially have resulted in the use of wire transfers in all real estate closings.  The bill was amended in committee to continue to allow federally insured financial institutions’ checks to be considered as “good funds,” and that version passed the full Senate this week.     A similar bill is pending in the House, H.B. 918, but that bill excludes official bank checks.  Our thanks to Senate Judiciary Committee chairman, Preston Smith (R-Rome) for his help in addressing our concerns that official bank checks retain their current status.  No word yet from the House Judiciary Committee when they will take up the bill.

Hearing Scheduled Monday on GBA-supported Mortgage Satisfaction Bill
The House Judiciary Committee has scheduled a hearing on H.B. 1093, a bill that clarifies the notification provisions for liquidated damages which result from the failure to satisfy a mortgage within the current 60-day period after a loan has been paid.  The bill was introduced by committee chairman, Wendell Willard (R-Sandy Springs).  The bill was introduced in response to a number of class action cases which have been filed against lenders throughout Georgia.  It has been assumed that in order for a borrower to receive the liquidated damages, the borrower would have to give notice to the lienholder and demand the payment.  Plaintiff lawyers have taken that a step further and arenow saying the demand can be made when a suit is filed seeking the payment not only for the borrower, but also for any   other borrowers of  the financial institution whose mortgage had not been satisfied within the 60 day period.  Dwight Davis with King & Spalding will be testifying for GBA in support of the legislation.  Joining Chairman Willard in introducing the bill are Reps. James Mills (R-Gainesville), Mike Coan (R- Lawrenceville), Barry Fleming (R-Harlem), Larry O’Neal (R-Warner Robins) and Ed Lindsey (R-Atlanta).  When you see these legislators, please thank them for their support of this bill.

Filing Fees/Recordings/Indexes Bills Introduced
Three bills were introduced this week that would change certain procedures relating to the filing of documents with the local filing authorities. 

  • H.B. 1069 by Rep. Earnest “Coach” Williams and others would require that future recordings in the grantor-grantee indexes include the name and address of the grantee and if the street address was not available, then the mailing address of the grantee will be recorded.

  

  • H.B. 974 by Rep. Martin Scott (R-Rossville) and others would require any deeds recorded after July 1, 2008 to indicate whether mineral rights were included with the conveyance.
     

  • H.B. 1018 by Rep. Roger Lane (R-Darien) and others adds a new $2.00 filing fee for any document filed with the Superior Court Clerk that would require a cross-reference to any other previously recorded document.

Nationwide Mortgage Lender/Broker Licensing Bill Passes House

The House of Representatives has passed H.B. 921, legislation introduced at the request of the Georgia Department of Banking and Finance that would allow our state to participate in a nationwide system of mortgage lender and broker licensing.  The system is a project of the Conference of State Bank Supervisors and went live in January.  In testifying before the House Banks and Banking Committee in support of the legislation, Banking Commissioner, Rob Braswell, told the Committee the

  Representative James Mills nationwide system would allow regulators to share information about individuals and companies that had regulatory filings made against them.  The purpose of the system is to give regulators more information about these individuals and companies to ensure the integrity of the licensing process.  Banking Committee James Mills (R-Gainesville) handled the bill.

GBA Amendments Successful to Proposed Uniform Security Act
The Senate Banking and Financial Institutions Committee met this week and discussed two bills of interest to our members.  Chairman Bill Hamrick, (R-Carrollton) has sponsored the adoption of the Uniform Securities Act, S.B. 358, and we appreciate his efforts to bring the Georgia statute in line with many other states.  We have been concerned about some of the exceptions banks enjoy in current law that were not included in the original version.  We have also raised concerns about the litigation potential the original bill could create from information put in a nationwide database designed to inform the public about individual brokers.  We appreciate the chairman’s willingness to address our concerns and the bill is being redrafted.    In other action, the committee reported S.B. 361, legislation sponsored by Sen. Chip Rogers (R-Woodstock) and others that would allow consumers to place a freeze on their credit files.  The bill was amended in committee to contain most of the same language in the recently-passed house bill, H.B. 130.  GBA has been monitoring the work of the legislature to ensure there will be no inadvertent and negative impact on financial institutions.  As reported out of committee, the bill restricts the fee to $3.00 for placing a freeze or thaw on credit reports and states the fee can be imposed no more than three times a year.

Hearing Held on Watercraft Titling Bill
The House Game, Fish and Parks Committee held a hearing this week on H.B. 1000 by Rep. John Heard (R-Lawrenceville) and others that would create a new titling procedure for certain watercraft.  In testifying before the committee, Rep. Heard, a boat dealer, discussed the importance of having a better tracking procedure for motorized watercraft.  Representatives from the Georgia Department of Natural Resources spoke in support of the concept and related stories about Georgia being a dumping ground of stolen boats from neighboring states that had titling procedures in place.  Representatives for the local tax authorities asked the committee to consider raising the recording fees to compensate them better for their work.    Representative John Heard Our thanks to GBA’s Credit Committee for giving us feedback on the concept.  Their general consensus was to support the legislation.  We will be working with Rep. Heard to answer several questions raised about the procedures which would be necessary to implement the process, and trust you will let us know if you have any concerns.  The bill has not yet been reported out of committee.
Uniform Act Passes Subcommittee   Refund Anticipation Loans
Representative Steve Tumlin GBA is 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.  Banks or bank trust departments are not currently covered by the language in the bill; however, we are monitoring the legislation.  A hearing was held on the bill this week and it was reported out of a subcommittee of the House Judiciary Committee.   Representative Rob Teilhet H.B. 1030  was introduced by Rep. Rob Teilhet (D-Smyrna) and others and would require additional disclosure by the firms providing refund anticipation loans from tax filings.  From input GBA received from our Credit Committee, we understand bankers occasionally make loans which the repayment source is an individual's tax refund.  The way the bill is currently drafted, these loans could be caught by the definitions which we understand is not the intent of the author.  We will be asking for clarifying language that refunds pledged against traditional bank loans be excluded from possible coverage by the bill.   

Resolutions Honor Bankers' Contributions to Industry, State and Country
The Senate has passed S.R. 709 by Sen. Michael Meyer von Bremen (D-Albany) and others honoring the life of GBA past Chairman, Morgan G. Murphy, and expresses condolences to his family in his passing. Morgan was GBA chairman in 1992-1993.

 

   The Senate has passed S.R. 707 by Sen. Chip Pearson (R-Dawsonville) and others honoringTom Gilliland on his retirement from United Community Banks, Inc. and congratulates him on his election to the Tennessee Valley Authority Board.

 

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.

  

Home   I   GBA University   I   Member Services   I   Volunteers   I   Government Relations  I  Calendar of Events

Georgia Bankers Association • 50 Hurt Plaza, Suite 1050, Atlanta, GA 30303 • Phone 404.522.1501 • Fax 404.522.9848 • www.gabankers.com