The Georgia Waiver of Borrowers Rights (Cx1009) is an agreement where a borrower waives all rights regarding receiving notice or having a judicial hearing before the lender exercises its right to non-judicially foreclose on a property. This document is traditionally included in mortgage loan closing packages.
In Section 2.6.3 of the Consumer Financial Protection Bureau’s (CFPB) Supervisory Highlights of Summer 2021 Issue 24, examiners concluded that the Georgia Waiver of Borrowers Rights (Cx1009) violates the CFPB’s prohibition on deceptive acts or practices per the Real Estate Settlement Procedures Act’s (RESPA) Loss Mitigation Procedures outlined in 12 C.F.R. § 1024.41. Accordingly, the examiners found that:
“A reasonable consumer could understand the provision to waive the consumer’s right to sue over a loss mitigation notice violation in the nonjudicial foreclosure context. This misrepresentation is material because it could dissuade consumers from consulting a lawyer or otherwise bringing Federal claims in court related to the transaction.”
Even though the CFPB directs for discontinuing the use of the Georgia Waiver of Borrowers Rights (Cx1009), until the Georgia State Bar comments on this matter and/or the Georgia Real Estate Title Standards are updated to reflect the CFPB’s directive, First American Docutech will continue to provide the Georgia Waiver of Borrowers Rights (Cx1009) generically in mortgage loan closing packages.
First American Docutech encourages their customers to reach out to their own investors to verify whether or not these investors will continue to require the Georgia Waiver of Borrowers Rights (Cx1009) to be included in mortgage loan closing packages.
If you have any questions or you would like to remove the Georgia Waiver of Borrowers Rights (Cx1009) from mortgage loan closing packages, please contact Client Support at 1.800.497.3584.