Plain English Breakdown
The effective date is May 13, 2025. It is unclear from this text whether existing contracts signed before that date follow these new rules.
HB240: Rules for Mortgage Lenders and Brokers on Trigger Leads
This law stops mortgage lenders and brokers from using unfair or deceptive tricks when they sell information about people who might want a new loan.
What This Bill Does
- Prohibits unfair or deceptive practices in consumer transactions involving mortgage trigger leads.
- Amends the Fair Business Practices Act to include these specific rules for mortgages.
- Updates licensing laws for mortgage lenders and brokers under Title 7 of state code.
- Provides legal definitions for terms used in this new rule.
- Creates a remedy, or way to fix problems, if someone breaks this law.
Who It Names or Affects
- Mortgage lenders operating in Georgia
- Mortgage brokers licensed in the state
Limits and Unknowns
- The official text does not list specific dollar amounts for fines.
- The exact details of how lenders must handle trigger leads are defined in the full code, which is not fully included here.