Georgia House bill by Rep. Williams amending mortgage lender rules and banning unfair trigger lead practices passes House and Senate

Newly passed bill authored by State Rep. Noel Williams, Jr. aims to prohibit unfair or deceptive practices related to mortgage trigger leads and revises regulations for mortgage lenders and brokers following approval in both chambers, according to the Georgia State House.

It passed both chambers as of Monday, March 31, clearing the House by a vote of 165-0 and the Senate by a vote of 51-1.

The bill, introduced as HB240 on Tuesday, Feb. 4 during the 2025 regular session of the 158th General Assembly, was formally described as: ’Mortgage lenders and brokers; prohibit unfair or deceptive practices in consumer transactions related to mortgage trigger leads’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends the Fair Business Practices Act and regulations on mortgage lenders and brokers in Georgia to prohibit unfair or deceptive practices related to mortgage trigger leads. It defines mortgage trigger leads and stipulates it is unlawful to solicit consumers seeking new loans if the solicitor fails to disclose they are unaffiliated with the initial lender, does not adhere to legal prescreened solicitation requirements, misuses consumer opt-out information, or changes offered terms detrimentally. Infractions are punishable under this act. It also revises acts prohibited for mortgage lenders and brokers, including practices deemed extortionate and dishonest reporting. The act takes effect upon the governor’s approval or automatically becoming law.

In the House, 69 Democrats and 96 Republicans voted in favor of the bill, with no opposition.

Meanwhile, in the Senate, 20 Democrats and 31 Republicans voted in favor, while one Republican voted against it.

The bill was co-sponsored by Rep. Demetrius Douglas (Democrat-78th), Rep. Scott Hilton (Republican-48th), and Rep. Trey Rhodes (Republican-124th), along with three other co-sponsors.

Williams graduated from the University of Georgia in 1994.

Williams, a Republican, was elected to the Georgia State House in 2019 to represent the state’s 148th House District, replacing previous state representative Buddy Harden.

The bill was signed into law by Gov. Brian Kemp on Tuesday, May 13.

In Georgia, the legislative process begins when a lawmaker, often at a constituent’s request, works with the Office of Legislative Counsel to draft a bill. After filing with the Clerk of the House or Secretary of the Senate, the bill receives its first reading and is sent to a committee, where most of the debate and fact-finding takes place. If approved, it advances to the floor for a third reading, debate, and a vote. To become law, the bill must pass both chambers, sometimes through a conference committee if versions differ, before being sent to the governor. The governor then has six days during session—or 40 days after adjournment (Sine Die)—to sign, veto, or allow the bill to become law without a signature. The Georgia General Assembly meets annually for a 40-day session beginning the second Monday in January.

Information in this article was obtained from the Georgia State House. The source data can be found here.