HB 240: Mortgage lenders and brokers; prohibit unfair or deceptive practices in consumer transactions related to mortgage trigger leads

When someone applies for a mortgage, the credit inquiry can trigger other lenders to receive a 'mortgage trigger lead,' a consumer report that lets them know the person is shopping for credit. Some lenders use these leads to call or contact the applicant directly, sometimes without disclosing who they are or offering the terms they promised. HB 240 adds a new section to Georgia's Fair Business Practices Act (O.C.G.A. § 10-1-393.20) making several trigger-lead practices illegal, such as failing to disclose the caller is not affiliated with the lender the consumer originally applied with, ignoring federal rules on prescreened credit offers, contacting people who opted out of such offers or the do-not-call registry, and advertising rates that the lender knows will later change to the consumer's disadvantage. The bill also updates Georgia's mortgage licensing law (O.C.G.A. § 7-1-1013) to add this trigger-lead misconduct to the list of prohibited acts for licensed mortgage lenders and brokers. The law would take effect as soon as the Governor signs it.

• Creates a new unfair or deceptive practices law specifically targeting the misuse of mortgage trigger leads, which are credit reports generated when someone applies for a mortgage.
• Requires companies soliciting a consumer through a trigger lead to disclose they are not affiliated with the lender the consumer originally applied with.
• Bans using trigger leads to contact consumers who opted out of prescreened credit offers or are on the federal do-not-call registry.
• Prohibits advertising loan rates, terms, or costs that the lender already knows will be changed later to the consumer's disadvantage.
• Adds trigger-lead violations to the list of prohibited acts under Georgia's mortgage lender and broker licensing law, making violations enforceable against licensees.
• Sets the law to take effect immediately once the Governor signs the bill.

Mortgage lenders and mortgage brokers licensed in Georgia, consumers applying for home loans whose credit inquiries generate trigger leads, and companies that buy or use those leads to solicit borrowers who applied for credit elsewhere.

Homebuyers often get flooded with calls from lenders they never contacted after applying for a mortgage. This bill would give Georgia regulators a legal tool to penalize lenders who hide their identity, ignore opt-out and do-not-call protections, or bait consumers with rates they don't intend to honor.

• Section 1 adds new Code Section 10-1-393.20 defining 'mortgage broker,' 'mortgage lender,' and 'mortgage trigger lead' by reference to existing state and federal law.
• Section 1 lists four specific practices that count as unfair or deceptive when using a trigger lead, including failing to disclose non-affiliation and violating prescreened-offer disclosure rules.
• Section 1 states that violating these rules is punishable under the existing Fair Business Practices Act enforcement framework.
• Section 2 amends O.C.G.A. § 7-1-1013 to add trigger-lead misconduct as a new prohibited act (paragraph 12) for licensed mortgage lenders and brokers.
• Section 3 sets the effective date as the date the Governor signs the bill or it otherwise becomes law without signature.

1. 2025-05-13Effective Date 2025-05-13
2. 2025-05-13Act 177
3. 2025-05-13House Date Signed by Governor (Cámara de Representantes)
4. 2025-04-07House Sent to Governor (Cámara de Representantes)
5. 2025-03-31Senate Passed/Adopted (Senado)
6. 2025-03-31Senate Third Read (Senado)
7. 2025-03-31Senate Taken from Table (Senado)
8. 2025-03-31Senate Tabled (Senado)

• Noel Williams (R, HD-148)Patrocinador principal
• Jason Ridley (R, HD-006)
• Trey Rhodes (R, HD-124)
• Demetrius Douglas (D, HD-078)
• Scott Hilton (R, HD-048)
• Will Wade (R, HD-009)
• Matt Brass (R, SD-006)

1. AprobadaVotación: Cámara de Representantes28 de febrero de 2025

   165 a favor, 0 en contra (6 sin votar, 9 ausentes)

   Passage: House Vote #121

2. AprobadaVotación: Senado31 de marzo de 2025

   51 a favor, 1 en contra (3 sin votar, 1 ausentes)

   Passage: Senate Vote #378

• mortgage lending
• consumer protection
• credit reports
• mortgage broker licensing
• fair business practices