Which lenders are covered by the Georgia Fair Lending Act (GAFLA)?

The Georgia Fair Lending Act (GAFLA) is designed to protect consumers from unfair lending practices and applies to a broad range of entities involved in the lending process. The correct answer indicates that loan brokers, servicers, and purchasers or assignees are all covered under this legislation.

Loan brokers are intermediaries who help facilitate loans for borrowers, while servicers handle the administration of the loans after they have been originated, including collecting payments and managing escrow accounts. Purchasers or assignees are those who buy the rights to a loan or take over the responsibilities of a loan from the original lender. By encompassing all these parties, GAFLA ensures comprehensive consumer protection by holding everyone involved in the lending process accountable for their practices.

This approach helps prevent predatory lending and promotes fairness and transparency in the Georgia lending market. The inclusion of all these entities under GAFLA is crucial because it acknowledges the interconnected nature of the lending system, making it harder for malicious practices to go unchecked.