HB1097: Mortgage lenders and brokers; licensure and regulations.

Chief Patron

Del. Mark Sickles (D-43)

Mark Sickles (D-43)
Alexandria, VA
Served: 2004–

Progress

	Introduced
	Passed Committee
	Passed House
	Passed Senate
	Signed by Governor
	Became Law

Status

01/31/2008: Failed to Pass in Committee

View Entire History

Summary

Mortgage Lender and Broker Act.  Requires mortgage lenders and brokers required to be licensed under the Mortgage Lender and Broker Act to make a reasonable and good faith determination based on verified and documented information that a borrower has a reasonable ability to repay a nonqualified mortgage loan. The measure prohibits a mortgage lender from compensating a mortgage broker based on the terms of a nonqualified mortgage loan. The fine or penalty that may be imposed by the State Corporation Commission for a violation of either of these provisions is $5,000; for other violations of the Act, the maximum fine remains $2,500. Finally, the measure requires the employees of a mortgage lender or broker who originates mortgage loans to be registered with the Commissioner of the Bureau of Financial Institutions. Applicants for registration will be required to submit to a criminal background check and to satisfy training standards and education requirements. The employee registration provisions will become effective January 1, 2009.