Bill Text: VA HB547 | 2010 | Regular Session | Chaptered
Bill Title: Nationwide Mortgage Licensing System & Registry; requires mortgage lenders and brokers to register.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2010-04-21 - Governor: Acts of Assembly Chapter text (CHAP0831) [HB547 Detail]
Download: Virginia-2010-HB547-Chaptered.html
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Be it enacted by the General Assembly of Virginia: 1. That §§6.1-409, 6.1-410, and 6.1-431.13 of the Code of Virginia are amended and reenacted as follows: §6.1-409. Definitions. As used in this chapter, the following words and terms shall have the following meanings unless the context requires a different meaning: "Commissioner" means the Commissioner of the Bureau of Financial Institutions. "Mortgage broker" means any person who directly or indirectly negotiates, places or finds mortgage loans for others, or offers to negotiate, place or find mortgage loans for others. Any licensed mortgage lender that, pursuant to an executed originating agreement with the Virginia Housing Development Authority, acts or offers to act as an originating agent of the Virginia Housing Development Authority in connection with a mortgage loan shall not be deemed to be acting as a mortgage broker with respect to such mortgage loan but shall be deemed to be acting as a mortgage lender with respect to such mortgage loan, notwithstanding that the Virginia Housing Development Authority is or would be the payee on the note evidencing such mortgage loan and that the Virginia Housing Development Authority provides or would provide the funding of such mortgage loan prior to or at the settlement thereof. "Mortgage lender" means any person who directly or indirectly originates or makes mortgage loans. "Mortgage loan" means a loan made to an individual, the proceeds of which are to be used primarily for personal, family or household purposes, which loan is secured by a mortgage or deed of trust upon any interest in one- to four-family residential property located in the Commonwealth, regardless of where made, including the renewal or refinancing of any such loan, but excluding (i) loans or extensions of credit to buyers of real property for any part of the purchase price of such property by persons selling such property owned by them, (ii) loans to persons related to the lender by blood or marriage, and (iii) loans to persons who are bona fide employees of the lender. "Mortgage loan" shall not include any loan secured by a mortgage or deed of trust upon any interest in a more than four-family residential property or property used for a commercial or agricultural purpose. "Nationwide Mortgage Licensing System and Registry" or "Registry" means the mortgage licensing and registration system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. "Person" means any individual, firm, corporation, partnership, association, trust, or legal or commercial entity or group of individuals however organized. "Principal" means any person who, directly or indirectly, owns or controls (i) ten percent or more of the outstanding stock of a stock corporation or (ii) a ten percent or greater interest in a nonstock corporation or a limited liability company. "Residential property" means improved real property used or occupied, or intended to be used or occupied, for residential purposes. §6.1-410. License requirement. A. No person shall engage in business as a mortgage lender or a mortgage broker, or hold himself out to the general public to be a mortgage lender or a mortgage broker unless such person has first obtained a license under this chapter. However, subject to such conditions as the Commission may prescribe, an individual who is a bona fide employee or exclusive agent of a person licensed under this chapter may negotiate, place or find mortgage loans without being licensed as a mortgage broker. B. Every mortgage lender and mortgage broker required to be licensed under this chapter shall register with the Registry and be subject to such registration and renewal requirements as may be established by the Registry, in addition to any requirements of this chapter. In adopting rules and regulations pursuant to §6.1-421, the Commission shall include any terms, conditions, or requirements applicable to such registration and renewal. Any fees required by the Registry shall be separate and apart from any fees imposed by this chapter. The Commission, at its discretion, may collect any registration and renewal fees on behalf of the Registry and remit such fees to the Registry or permit the Registry to collect any fees imposed by this chapter and remit such fees to the Commission. C. In connection with its implementation and administration of this chapter, the Commission may establish agreements or contracts with the Registry or other entities designated by the Registry to collect, distribute, and maintain information and records, and process fees related to mortgage lenders and mortgage brokers required to be licensed under this chapter. In establishing such agreements or contracts, the Commission shall not be subject to the Virginia Public Procurement Act (§2.2-4300 et seq.). §6.1-431.13. Provisional mortgage loan originator license. A. A mortgage loan originator applicant who has completed and filed with the Commission and the Registry all information, documents, and requirements for licensure pursuant to this chapter shall be provided a provisional license, registration, and unique identifier as a mortgage loan originator for the period prior to action being taken on his application by the Commission if (i) the applicant is employed by or contracted to act as a mortgage loan originator for a person licensed under Chapter 16 (§6.1-408 et seq.), and (ii) a senior officer or principal of such person attests to the Commission that: 1. If the applicant is not currently or has not within the six-month period prior to the date of application been acting as a mortgage loan originator or a state-licensed mortgage loan originator in another state under provisions of §1507 of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (P.L. 110-289): a. The applicant has never had a mortgage loan originator license denied, revoked, or suspended in any governmental jurisdiction; b. The Commission has not denied the application of or revoked or taken any adverse action with respect to any license held by the applicant during the five-year period ending on the date of filing of the application; c. The applicant has not been convicted of a felony that would otherwise authorize the Commission to deny a license; d. The application meets or exceeds all of the applicable requirements of this chapter for licensure; and e. The licensed person will be responsible for the acts of the applicant during the period that such application is pending; or 2. If the applicant is currently or has within the six-month period prior to the date of the application been acting as a registered mortgage loan originator or a state-licensed mortgage loan originator in another state under provisions of §1507 of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (P.L. 110-289): a. The applicant has never had a mortgage loan originator license denied, revoked, or suspended in any governmental jurisdiction; and b. The applicant has not been convicted of a felony that would otherwise authorize the Commission to deny a license. B. Any provisional license issued pursuant to this section shall expire on the earlier of the following: 1. The date upon which the Commission issues or denies the license applied for; or 2. C. The Commission may (i) suspend or revoke the license of, or (ii) impose a fine not exceeding $2,500 upon, a person licensed under Chapter 16 (§6.1-408 et seq.) if the Commission finds that the licensee, or a senior officer or principal thereof, did not make the certification or undertaking set forth in subsection A in good faith. |
