Mortgage Lender and Broker Act; broker duties and liability. (HB1776)

Introduced By

Sen. 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)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


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. Read the Bill »


Bill Has Passed


01/08/2009Prefiled and ordered printed; offered 01/14/09 090024624
01/08/2009Referred to Committee for Courts of Justice
01/16/2009Assigned Courts sub: Civil
01/21/2009Impact statement from SCC (HB1776)
02/04/2009Subcommittee recommends reporting with amendment(s)
02/06/2009Reported from Courts of Justice with substitute (18-Y 4-N) (see vote tally)
02/06/2009Committee substitute printed 090316624-H1
02/08/2009Read first time
02/09/2009Read second time
02/09/2009Committee substitute agreed to 090316624-H1
02/09/2009Engrossed by House - committee substitute HB1776H1
02/10/2009Read third time and passed House (82-Y 16-N)
02/10/2009VOTE: --- PASSAGE (82-Y 16-N) (see vote tally)
02/10/2009Impact statement from SCC (HB1776H1)
02/11/2009Constitutional reading dispensed
02/11/2009Referred to Committee on Commerce and Labor
02/16/2009Reported from Commerce and Labor (15-Y 0-N) (see vote tally)
02/18/2009Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/19/2009Read third time
02/19/2009Passed Senate (40-Y 0-N) (see vote tally)
02/24/2009Bill text as passed House and Senate (HB1776ER)
02/24/2009Impact statement from SCC (HB1776ER)
02/25/2009Signed by Speaker
02/27/2009Signed by President
03/27/2009G Approved by Governor-Chapter 189 (effective 7/1/09)
03/27/2009G Acts of Assembly Chapter text (CHAP0189)


This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 1 clip in all, totaling 13 minutes.

Duplicate Bills

The following bills are identical to this one: SB1020.


Virginia Interfaith Center for Public Policy, tracking this bill in Photosynthesis, notes:

The Virginia Interfaith Center supports this bill.

Nonprofit NoVA, tracking this bill in Photosynthesis, notes:

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