Posted: Sunday, January 24th 2010 at 12:05pm
Legislature considers tighter mortgage rules
By The Associated Press
ATLANTA - Georgia lawmakers could soon debate new rules that would require mortgage bankers and brokers to evaluate whether a loan is likely to get repaid and whether it's a reasonable deal for the borrower.
Roughly a dozen states have adopted similar legislation and federal regulators have approved rules to prevent the risky lending practices that led to high foreclosure rates and dropping property values.
It's still unclear whether Georgia lawmakers will act this year as they focus on tackling sagging tax revenues, but supporters say changes are needed because supbrime mortgage brokers sold loans that consumers could not afford.
Republican State Sen. Bill Hamrick said the only winners in those deals were the brokers, who "got a fee and didn't have to worry about whether the loan got repaid."
© Copyright 2013 AccessNorthGa.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.