Mortgage Lender and Broker Act; broker duties and liability. (HB1776)
Introduced By
Del. Jennifer McClellan (D-Richmond) with support from co-patrons Del. Chris Peace (R-Mechanicsville), Del. Shannon Valentine (D-Lynchburg), and Sen. Don McEachin (D-Richmond)
Progress
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Introduced |
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Passed Committee |
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Passed House |
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Passed Senate |
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Signed by Governor |
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Became Law |
Description
Mortgage Lender and Broker Act; broker duties and liability. Imposes upon mortgage brokers the duties to (i) act in the borrowers best interest and in the utmost good faith toward the borrower and not to compromise a borrowers right or interest in favor of anothers right or interest, including a right or interest of the mortgage broker; (ii) make reasonable efforts to secure a loan that is in the best interests of the borrower considering borrower circumstances and loan characteristics, including the product type, rates, charges, and repayment terms of the loan; and (iii) use reasonable skill, care, and diligence. The measure authorizes a borrower who has suffered a loss as a result of any violation of the Mortgage Lender and Broker Act to bring an action to recover actual damages, attorney fees, and court costs. If the violation was willful, the damages may be increased up to treble the amount of damages sustained. View Full Text »
Comments
The Virginia Interfaith Center supports this bill.
Support. Nonprofit NoVA has taken lead in addressing the foreclosure crisis hurting NoVA families and neighborhoods, communicating with those who are at risk of foreclosure to link them with organizations and legal counsel they can count on to have their best interests in mind. This legislation is intended to prevent additional crises by ensuring that brokers work in their clients best interest. SB1020