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Florida and Georgia Fair Lending bills signed. (Business Alert).

FLORIDA GOVERNOR JEB BUSH SIGNED SENate Bill 2262--the Florida Fair Lending Act--on April 24, 2002. The bill places several fee restrictions on high-cost home loans and requires numerous disclosures in connection with such loans. It also grants the Florida Department of Banking and Finance the authority to promulgate rules under the Florida Fair Lending Act, as well as broad enforcement powers with the ability to impose civil penalties for violations of the act.

Georgia Governor Roy Barnes signed H.B. 1361--the Georgia Fair Lending Act--on April 23, 2002. The law imposes new restrictions on all loans made in Georgia and imposes additional restrictions on high-cost loans, including: no financing of credit insurance premiums; no refinancing of life, accident, health or loss-of-income insurance premiums; no recommending default on an existing loan; no fees for providing a payoff balance or release after refinancing, except when provided by fax or within 6o days of a previous request (in which case the lender may charge up to $10.00); and no late fees unless the loan document specifically authorizes such charges, the fee is not imposed until the payment is at least 10 days past due, the fee does not exceed 5 percent of the loan amount, the fee is not imposed more than once on the same late payment and the fee is not imposed on any subsequent payment that would have been a full payment but for the previous default or imposition of the previous late charge.
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Publication:Mortgage Banking
Article Type:Brief Article
Geographic Code:1USA
Date:Jun 1, 2002
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