SB 582
Relating to requirements for licensure as mortgage lender or broker
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Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill updates the requirements for obtaining licenses as a mortgage lender or broker in West Virginia. It mandates that applicants provide fingerprints for criminal background checks and submit financial statements demonstrating tangible net worth, with specific thresholds varying based on loan originations. The bill also introduces a per-loan fee for licensees and allows for waivers or reductions in fees and requirements for certain nonprofit organizations. It clarifies bond requirements and establishes procedures for handling claims and investigations.
Key provisions
- Applicants must submit fingerprints for criminal background checks.
- Lenders and brokers must demonstrate tangible net worth of at least $250,000 (for lenders) or $10,000 (for brokers) as shown by audited financial statements.
- Licensees must pay a per-loan fee of $5 annually.
- The bill allows for waivers or reductions of fees and net worth requirements for certain nonprofit organizations.
- Bond requirements vary based on annual loan originations, with higher amounts required for larger loan volumes.
- Licensees must disclose any pending litigation or unresolved complaints.
- Nonresident licensees are subject to West Virginia jurisdiction.
- The commissioner can reduce or waive fees and requirements for nonprofit organizations.
Who is affected
- Mortgage lenders
- Mortgage brokers
- Financial institutions
- Consumers seeking mortgages
- Surety companies
Notable changes
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