Mortgage Lender & Broker Act; SCC to enforce certain laws for home ownership protection. (HB1487)

Introduced By

Del. Terrie Suit (R-Virginia Beach)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Home ownership protection. Authorizes the State Corporation Commission to impose a fine not exceeding $2,500 upon a mortgage lender or mortgage broker that is required to be licensed under the Mortgage Lender and Broker Act for violating any other law or regulation applicable to the conduct of the lender's or broker's business. The Housing Commission is directed to study all new federal legislation pertaining to mortgage lending and brokering, and to determine if they require changes to Virginia law. The measure authorizes the Commission to suspend or revoke a mortgage lender's or broker's license upon its failure promptly to pay when due reasonable fees to a licensed appraiser for appraisal services performed in connection with the origination or closing of a mortgage loan for a customer of the mortgage broker or lender. Other amendments to the Mortgage Lender and Broker Act (i) remove the element of the definition of a mortgage loan that has required the property securing the loan to be owner-occupied; (ii) require the Commission to conduct background checks on every member, senior officer, director, and principal of a licensee; (iii) require licensees to conduct background checks on employees who may have access to or process personal identifying or financial information from a member of the public; (iv) require licensees to ensure that employees are properly trained in applicable state and federal mortgage lending laws and regulations; (v) authorize the Insurance Commissioner to bring actions to enforce specific provisions of the federal RESPA that, pursuant to the federal law, may be enforced by the federal Department of Housing and Urban Development, a state Attorney General, or a state insurance commissioner; and (vi) prohibit the making or brokering of certain types of mortgage loans unless the borrower has completed an approved homeownership education course. Read the Bill »


03/09/2008: Passed the General Assembly


01/17/2008Presented and ordered printed 080070744
01/17/2008Referred to Committee on Commerce and Labor
01/30/2008Assigned C & L sub: 2
01/31/2008Impact statement from SCC (HB1487)
01/31/2008Reported from Commerce and Labor with substitute (22-Y 0-N) (see vote tally)
02/01/2008Committee substitute printed 080172744-H1
02/04/2008Read first time
02/05/2008Read second time
02/05/2008Committee substitute agreed to 080172744-H1
02/05/2008Engrossed by House - committee substitute HB1487H1
02/06/2008Read third time and passed House BLOCK VOTE (99-Y 0-N)
02/06/2008VOTE: BLOCK VOTE PASSAGE (99-Y 0-N) (see vote tally)
02/06/2008Communicated to Senate
02/07/2008Constitutional reading dispensed
02/07/2008Referred to Committee on Commerce and Labor
02/19/2008Impact statement from SCC (HB1487H1)
02/25/2008Reported from Commerce and Labor with substitute (15-Y 0-N) (see vote tally)
02/26/2008Committee substitute printed 089567744-S1
02/27/2008Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/28/2008Read third time
02/28/2008Reading of substitute waived
02/28/2008Committee substitute agreed to 089567744-S1
02/28/2008Engrossed by Senate - committee substitute HB1487S1
02/28/2008Passed Senate with substitute (40-Y 0-N)
02/29/2008Placed on Calendar
03/03/2008Passed by for the day
03/04/2008Senate substitute agreed to by House 089567744-S1 (99-Y 0-N)
03/04/2008VOTE: --- ADOPTION (99-Y 0-N) (see vote tally)
03/06/2008Bill text as passed House and Senate (HB1487ER)
03/06/2008Impact statement from SCC (HB1487S1)
03/06/2008Signed by Speaker
03/07/2008Impact statement from SCC (HB1487ER)
03/09/2008Signed by President
04/11/2008Governor's recommendation received by House


What about HOAs? writes:

If Ms. Suit really wants to protect homeowners, she should protect them from abusive Homeowner Associations.

HOAs in Virginia are too powerful and too prone to abuse.

Sections 55-513 and 55-516 of the POAA need to be rewritten. HOAs should NOT have the power to "fine" homeowners in Kangaroo Court proceedings and then sell their homes by nonjudicial foreclosure to collect the "fines."

HOAs should have the same rights as any other party to a contract. If they think a homeowner has violated HOA rules, they should seek an injunction or other relief in a court of competent jurisdiction.

The POAA already provides that if HOAs go to court and WIN, they recover attorney fees and costs from the homeowner.

If they go to court and LOSE, they pay the homeowners costs.

Hey, now that I think of it, maybe that's why HOAs prefer to use their Kangaroo Courts, eh?

What about it Ms. Suit?

PS. See two of Ms Suits other bills: HB 516 and HB 1076. These speak volumes about her real regard for homeowners, or the lack thereof.