In May the Georgia Bar took action aimed at eliminating confusion regarding the Waiver of Borrower’s Rights – a customary Georgia closing document that the CFPB deemed prohibited by law. Revised Title Standard 14.9 makes clear that “the absence of an executed waiver or its attachment to the security deed as recorded shall not invalidate the security deed nor prevent the exercise of an otherwise proper power of sale.” We are cautiously optimistic that the revised Title Standard will stop agencies and investors from requiring the Waiver and closing attorneys and document preparation companies from defaulting to its use.
As a reminder, Georgia law requires a license to buy or sell loans governed by the Georgia Residential Mortgage Act. Plus, GRMA prohibits licensees from doing business with those who are not licensed (or exempt) to engage in such activities. The licensing exceptions are limited and often misinterpreted – resulting in substantial fines for licensees ignorant of the law. If you are buying or selling loans subject to GRMA, be sure you’re following the law to avoid becoming the target of an enforcement action!