Georgia Fair Lending Act Resources
The Georgia Fair Lending Act (GAFLA) was originally signed into law on April 22, 2002, became effective on October 1, 2002, and was subsequently amended on March 7, 2003. This law has a significant impact on Georgia residential mortgage lending and brokering activities.
The Georgia Fair Lending Act - Codified to Title 7, Chapter 6A - (Adobe PDF format)
- This file contains all code sections of the Georgia Fair Lending Act - Title 7, Chapter 6A.
Department of Banking & Finance Q&A on the GAFLA - (MS Word format)
This link will take you to the Department's consolidated question and answer (Q&A) document. The Q&A has been compiled from questions submitted by industry licensees and other professionals and represents the official interpretations of the Department, based on the information and input available at the time of submission.
IMPORTANT INFORMATION FOR BROKERS:
It has come to the Department’s attention that many mortgage brokers rely on lenders to make the determination if their residential mortgage loans have points and fees of 5% or more, as calculated under GAFLA. This is a very risky practice, as mortgage brokers are held equally responsible for any violations that may be committed. Also, some lenders such as banks, trust companies, and their subsidiaries are exempt from the provisions of GAFLA and are not required to perform the calculations. Penalties for violation of GAFLA subjects the creditor, which includes mortgage brokers who failed to conduct appropriate due diligence, to actual damages, including consequential, incidental, and punitive damages; statutory damages of twice the interest paid and forfeiture of all future interest; costs and reasonable attorney fees; equitable claims, including injunctions; class actions; special rescission rights of up to 5 years after consummation; enforcement proceedings from the Attorney General, the Department of Banking and Finance, and Department of Insurance; and criminal prosecution.
In addition to conforming to GAFLA, you must ensure that you are in compliance with Department Rule 80-11-2.02(1)(l), which states, in part, that you must maintain, “[a] n indication of whether each loan has points and fees of 5% or more, as calculated under the Georgia Fair Lending Act.” As an example, you may decide to have this indication or “indicator” located in each loan file or you may choose to display it on your Mortgage Loan Transaction Journal.
Instead of relying on others, do not put your business at risk of incurring any of the penalties mentioned. Perform the GAFLA calculations yourself!
OTHER RESOURCES:
Fannie Mae RNYs for Bona Fide Discount Points (7-6A-2(4)) - Fannie Mae required net yields (RNYs) for 30- and 15-year fixed-rate mortgages (FRMs) and 7-year balloon mortgages with Actual/Actual (A/A) remittance are available to the public by month for the last 12 months. Fannie Mae approved lenders may contact the Fannie Mae Cash Commitment Window at 1-800-752-1080 for pricing information. Additional yield and price information is available on eCommitting.
Freddie Mac RNYs for Bona Fide Discount Points (7-6A-2(4)) - Freddie Mac RNYs are updated hourly and are first posted at approximately 8:30a.m. each business day. You can obtain rates during the day, on the hour, by using the previous RNY drop down box.
FRB Treasury Yields (Constant Maturities) for High Cost Home Loan APR triggers (weekly release) - The Federal Reserve (FRB) does not publish the current Treasury yields each day - there is normally a one day lag if you use the daily update publication. The FRB's H.15 Weekly Release will give you the rates for each business day of the week. The Weekly Release is posted each Monday after 4p.m. and indicates the rates/yields for the previous week.
Both of the links below are provided for the purposes of complying with Section 7-6A-5(7) of the GAFLA.
Georgia Housing Finance Authority - Approved Counselors - This link will take you to the Georgia Housing Finance Authority's webpage of approved counselors.
HUD Approved Counseling Agencies in Georgia - This link will take you to HUD's list of approved counseling agencies in Georgia.
Send us your questions: If you would like to submit additional questions concerning the GAFLA, please send them to gafla@dbf.state.ga.us
Associated Document(s):
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GAFLAcompanionAmended.pdf |
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GAMortgagebrochure.pdf |
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