Mortgage loans; evidence of legal presence required. (HB156)

Introduced By

Del. Paul Nichols (D-Woodbridge)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Mortgage loans; legal presence; penalty. Makes it unlawful for any person to make a loan secured by a mortgage or deed of trust on real estate located in the Commonwealth to an individual unless the individual, prior to settlement, has provided evidence of legal presence. The lender is further required to keep copies of the evidence of legal presence for at least three years. Violators are subject to a fine of not more than $10,000. Read the Bill »


Bill Has Failed


12/21/2007Prefiled and ordered printed; offered 01/09/08 086986654
12/21/2007Referred to Committee on Rules
01/23/2008Impact statement from SCC (HB156)
02/12/2008Left in Rules


CG2 Consulting, tracking this bill in Photosynthesis, notes:

This is another piece of legislation that seeks to turn untrained members of the business community into immigration enforcement officers and to impose new regulatory and paperwork burdens on small businesses that are not justified by a corresponding benefit.

No one can currently get a mortgage without a social security number. Only citizens and lawful permanent residents can legally get social security numbers.

Mortgage lenders are not trained to detemine what someone's legal status is nor to ascertain whether documents presented are fraudulent.

Before we impose additional paperwork burdens and personnel and training requirements on banks and small businesses, there should, at least, be some evidence that doing so will yield specific defined positive benefits that outweigh the regulatory costs imposed.