A Georgia licensee excludes attorney fees from a points and fees calculation in 2026 and documents nothing. What attorney-choice documentation is required to support the proposed exclusion?
Correct Answer
D) Deficient: documentation that the consumer had a choice of attorney
A licensee must maintain documentation indicating that a consumer had a choice of attorney where attorney fees are intended to be excluded from a points and fees calculation under the Georgia Fair Lending Act. Other choices: being a third-party charge is what makes the exclusion arguable rather than automatic; a lender panel is the opposite of a free choice; and the hourly rate is not what is documented. Source: Ga. Comp. R. & Regs. 80-11-2-.02(1)(k)
Why This Is the Correct Answer
A licensee must maintain documentation indicating that a consumer had a choice of attorney where attorney fees are intended to be excluded from a points and fees calculation under the Georgia Fair Lending Act. Other choices: being a third-party charge is what makes the exclusion arguable rather than automatic; a lender panel is the opposite of a free choice; and the hourly rate is not what is documented. Source: Ga. Comp. R. & Regs. 80-11-2-.02(1)(k)
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