Assignee Liability Essential In Enforcement Of Lending, Consumer Protection Laws

A recent op-ed column in the Atlanta Journal Constitution makes an observation on a weakness in Georgia state law in connection with the enforcement of lending and consumer protection laws:

• Many consumer advocates support the lending law revisions in Senate Bill 57, but the changes are window dressing for those of us who represent poor people faced with foreclosure. The law falls short in one crucial area — assignee liability.

• Assignee liability entitles a bilked borrower facing foreclosure to sue not only the originator of the loan but also the current holder. It’s important because most loans are sold and transferred into mortgage-backed security pools. SB 57 doesn’t mandate assignee liability, which means that homeowners would be left with no clear recourse.

For more, see Once mortgages sold, homeowners often left stranded.