Mortgage lenders and brokers; duties to borrowers. (SB157)

Introduced By

Sen. Don McEachin (D-Richmond)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Mortgage Lender and Broker Act; duties to borrowers. Establishes a fiduciary duty of mortgage brokers to borrowers. Mortgage brokers are required to act in the borrower's best interest and with the utmost good faith. Mortgage brokers have the duties (i) to disclose all material information that might reasonably affect the borrower's rights, interests, or ability to receive the intended benefit from the loan, including the total compensation that the mortgage broker would receive from any of the loan options presented to the borrower, and (ii) to make reasonable efforts to secure or obtain a mortgage loan that is in the best interest of the borrower. Mortgage lenders are required to act in good faith and deal fairly in any transaction, practice or course of business in connection with a mortgage loan, and to make reasonable efforts to make a mortgage loan that is reasonably advantageous to the borrower. In addition, mortgage brokers and lenders are required to safeguard and account for any money handled for a borrower, follow reasonable and lawful instructions from the borrower, and use reasonable skill, care, and diligence. Read the Bill »


Bill Has Failed


01/07/2008Prefiled and ordered printed; offered 01/09/08 088284273
01/07/2008Referred to Committee on Commerce and Labor
01/18/2008Impact statement from SCC (SB157)
02/11/2008Passed by in Commerce and Labor with letter (8-Y 7-N) (see vote tally)
02/11/2008Continued to 2009 in Commerce and Labor
02/11/2008Subject matter referrred by letter to Housing Commission pursuant to Senate Rule 20 (L)