Georgia Adopts New Mortgage Servicing Rules

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The Georgia Department of Banking and Finance has issued new mortgage servicing rules including, but not limited to, the following provisions:

  • Definitions that generally have the same meaning as in the terms defined in Ga. Code Ann. § 7-1-4 and Ga. Code Ann. § 7-1-1000. The term "complete loss mitigation application" has been added, and means an application in which a servicer has received all of the information that the servicer requires from a borrower in evaluating applications for loss mitigation options available to the borrower. A servicer shall exercise reasonable diligence in obtaining documents and information to complete a loss mitigation application. The term "notice of error" has been added, and means any written notice from the borrower that asserts an error and that includes the name of the borrower, information that enables the servicer to identify the borrower’s mortgage loan account, and the error the borrower believes has occurred. A notice on a payment coupon or other payment form supplied by the servicer need not be treated by the servicer as a notice of error.
  • Mortgage servicer standards applicable to any person who services mortgage loans, including the duty to act with reasonable skill, care, and diligence.
  • Record retention requirements, including the requirement for each servicer to maintain required books, accounts, and records at the principal place of business for a period of five years after the date a mortgage loan is discharged or the servicing rights are transferred or otherwise terminated.
  • Specific minimum requirements for books and records that must be maintained, including copies of certain documents, servicer files for each mortgage loan serviced, and a list of all servicer violations.

These provisions went into effect on July 19, 2017.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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