114) Fannie Mae also announced that it would "conduct additional quality assurance reviews of mortgages secured by properties in Georgia and [would] require 'immediate' repurchase of those loans determined to be high-cost home loans under the GFLA, or other federal, state or local laws.
A helpful summary of the terms of the original GFLA can be found on the Federal Reserve Bank of Atlanta website, see "Georgia's Anti-Predatory Lending Law," online: Federal Reserve Bank of Atlanta <http://www.
com> (which reports that "[t]he bill clarifies ambiguities in the GFLA and repeals provisions that had caused many mortgage lenders to cease lending activities in Georgia since the GFLA became effective in October 2002").
Most importantly, however, the GFLA subjects assignees of Home
the original GFLA assignee liability provision, which actually only
to state banks (although the GFLA
remains in effect for other
One of the unique features of the original GFLA was broad-based pass-through liability, which extended responsibility for violations of the lending provision from the originator of the loan to any future holders of the loan.
Knowingly Violating GFLA carried criminal penalties, including six months in prison.
First, loans originated by federal thrifts and their operating subsidiaries under the original GFLA (from Oct.
Second, loans originated by federal thrifts and their operating subsidiaries under the amended GFLA (on or after March 7, 2003), and the New York, New Jersey, and New Mexico anti-predatory lending statutes will continue to be permitted in Standard & Poor's rated transactions.
provides for preemption parity such that federal preemption applies to the same type of state chartered entity as the federally chartered entity affected by the preemption.
If all of the loans were originated in Georgia and are 'high cost' loans under the GFLA
, the required enhancement will range from 52.