Mortgage lenders and brokers; prohibit unfair or deceptive practices in consumer transactions related to mortgage trigger leads

More protection for Georgia mortgage applicants

Georgia law limits mortgage sales pitches based on trigger leads—credit reports obtained after a loan application prompts a credit check. These rules apply when another mortgage lender or broker uses that lead to contact the applicant. The first pitch must disclose that the solicitor is not connected to the lender or broker first approached. It must follow state and federal prescreened-offer rules, including making a firm offer of credit. Solicitors cannot use information about people who opted out of prescreened offers or joined the federal do-not-call list. They also cannot advertise rates, terms, or costs they know will later change against the consumer. Reports obtained by the original lender or broker, or one holding or servicing the applicant’s existing credit, are excluded. Violations are punishable under Georgia’s Fair Business Practices Act and also violate mortgage licensing law.