Knowledge Tree
Georgia Fair Lending Act
Also known as: GFLA
Facts (13)
Sources
Regulatory - American Predatory Lending predatorylending.duke.edu 13 facts
perspectiveNationally chartered banks argued that the Georgia Fair Lending Act (GFLA) infringed on their right to be regulated only by federal regulators.
perspectiveThe private sector criticized the Georgia Fair Lending Act (GFLA), arguing that assignee liability, class action lawsuits, and other remedies created unsustainable liability for financial institutions in the secondary mortgage market.
claimThe Georgia Fair Lending Act (GFLA) increased penalties and risk for banks, mortgage originators, and institutions trading high-cost mortgages on the secondary market.
claimThe Georgia Fair Lending Act (GFLA) provided an avenue for class action lawsuits by borrowers.
referenceThe Georgia Fair Lending Act (GFLA), enacted in 2002, was modeled after the North Carolina Predatory Lending Law and utilized interest rate thresholds to trigger restrictions on loan terms.
claimThe Georgia Fair Lending Act (GFLA) increased penalties and financial risk for banks, mortgage originators, and institutions trading high-cost mortgages on the secondary market.
claimThe Georgia Fair Lending Act (GFLA) of 2002 was modeled after the North Carolina Predatory Lending Law.
referenceThe Georgia Fair Lending Act (GFLA) included aggressive remedies for violations, such as assignee liability (allowing borrowers to bring claims against any purchaser or holder of the mortgage), a ban on mandatory arbitration clauses, and provisions for class action lawsuits.
claimThe Georgia Fair Lending Act (GFLA) included assignee liability, which allowed borrowers to bring all claims against the mortgage originator against any purchaser or subsequent holder of the mortgage.
accountIn March 2003, Georgia state legislators amended the Georgia Fair Lending Act (GFLA) to remove assignee liability and scale back other remedies in response to industry pressure.
perspectivePrivate sector entities criticized the original Georgia Fair Lending Act (GFLA) for creating unsustainable liability in the secondary mortgage market, while nationally chartered banks argued the law infringed on their right to be regulated exclusively by federal regulators.
claimThe Georgia Fair Lending Act (GFLA) banned mandatory arbitration clauses.
accountIn July 2003, the Office of the Comptroller of the Currency (OCC) issued an order preempting the Georgia Fair Lending Act for nationally chartered banks.