I live in Georgia. Another appraiser and I were invited to speak Tuesday at a Realtors' sales meeting about the appraisal process. Unbeknownst to us, a local mortgage banker was up after us, to speak about this new law. You should have heard the howling!! Everyone, including realtors will now be liable. I left the building with a hugh grin.
One of the most interesting points I found in the law is that they (banks & brokers) must keep on file for five year some sort of evidence that the loan "provide reasonable, tangible net benefit to the borrower considering all of the circumstances, including the terms of both the new and refinanced loans, the cost of the new loan, and the borrower's circumstances" O.C.G.A 7-6A-4.
It should be interesting to see what effect if any this has on the predatory lending. This law only covers "high cost loans". Basically, that's any loan with points and fees greater than 5%. I guess I really didn't realize how many mortgages fall into that category. According to that banker though, the trough is going to be rather empty for a while.
The law I want to see passed and I think needs to be passed is to outlaw deficiency judgments on property sold at trustee sales. If the lenders want to use AVM or some other method of determining the value of real estate that secures their loans, that is fine with me, but if it does not work resulting in grossly over valued property and the lenders take a loss, why should the tax payers have to foot the bill? Given the present environment, this law is long over due. I think we as appraisers should have been lobbying for this law long ago.