The State Bar of Georgia recently revised their Title Standard related to the Waiver of Borrower Rights that is typically included with a Georgia Security Deed. The revision to the Title Standard notes that the absence of a Waiver of Borrower Rights “shall not invalidate the security deed nor prevent the exercise of an otherwise proper power of sale.”
As announced last year, DocMagic made revisions to the Georgia Acknowledgment of Waiver of Borrower Rights (DocMagic Form ID: GAAWBR.MSC) disclosure in response to the CFPB’s Summer Supervisory Highlights which indicated such a waiver was a violation of the Consumer Financial Protection Act (“CFPA”). Those revisions included removal of the waiver by borrower of various rights related to the exercise of the power of sale by the lender so as to comply with the CFPA. The revisions resulted in a revised document which only reiterated the agreements made in the note and security deed for Georgia properties, and it was renamed to the Acknowledgment of Borrower’s Rights Rider with the same Form ID. At that time, DocMagic did not remove the document despite the CFPB’s statements as it was still a standard title requirement within the state of Georgia.
At the time of revisions, while the form continued to be included automatically in closing packages as a result of the remaining title requirement, we noted our intention to remove the document as a part of standard closing packages in the future. As a result of the changes by the State Bar of Georgia, DocMagic is moving the Georgia Acknowledgment of Borrower’s Rights Rider to an optional form that will no longer be included automatically in Georgia closing packages. To provide sufficient time for lenders and title companies to adjust their procedures, DocMagic will remove this form as an automatic part of Georgia closing packages as of August 1, 2023. At that time, the form will still remain available to be selected from the Forms List, if it is still desired, or may be added to the client’s account to be included automatically.
