Bill Text: VA HB1803 | 2013 | Regular Session | Chaptered
Bill Title: Mortgage loan originators; conforms Virginia statutory law to federal regulations.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2013-02-20 - Governor: Acts of Assembly Chapter text (CHAP0020) [HB1803 Detail]
Download: Virginia-2013-HB1803-Chaptered.html
Be it enacted by the General Assembly of Virginia: 1. That §§6.2-1700 and 6.2-1701 of the Code of Virginia are amended and reenacted as follows: §6.2-1700. Definitions. As used in this chapter: "Act" means the federal Secure and Fair Enforcement for Mortgage Licensing Act, Title V (§1501 et seq.) of the Housing and Economic Recovery Act of 2008, P.L. 110-289. "Administrative or clerical tasks" means the receipt, collection, and distribution of information common for the processing or underwriting of a residential mortgage loan in the mortgage industry and communication with the consumer to obtain information necessary for the processing or underwriting of a residential mortgage loan. " "Dwelling" means a residential structure or mobile home that contains one to four family housing units, or individual units of condominiums or cooperatives. "Employee" means an individual (i) whose manner and means of performance of work are subject to the right of control of, or are controlled by, a person and (ii) whose compensation for federal income tax purposes is reported, or required to be reported, on a W-2 form issued by the controlling person.
"Immediate family member" means a spouse, child, sibling, parent, grandparent, or grandchild. This includes stepparents, stepchildren, stepsiblings, and adoptive relationships.
"Licensee" means an individual licensed under this chapter. "Loan processor or underwriter" means an individual
who, with respect to the origination of a residential mortgage loan, performs
clerical or support duties at the direction of and subject to the supervision
and instruction of a licensee or a "Mortgage loan originator" means an individual who (i) takes an application for or offers or negotiates the terms of a residential mortgage loan in which the dwelling is or will be located in the Commonwealth or (ii) represents to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that such individual can or will perform any of the activities described in clause (i). "Nationwide Mortgage Licensing System and Registry" or "Registry" means a mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of mortgage loan originators. "Nontraditional mortgage product" means any mortgage product other than a 30-year fixed rate mortgage. "Real estate brokerage activities" means any activity that involves offering or providing real estate brokerage services to the public, including (i) acting as a real estate broker, real estate agent, or real estate salesperson for a buyer, seller, lessor, or lessee of real property; (ii) bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property; (iii) negotiating any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property, other than in connection with providing financing with respect to any such transaction; (iv) engaging in any activity for which a person is required to be licensed or registered as a real estate broker, real estate agent, or real estate salesperson; and (v) offering to engage in any activity or act in any capacity described in clauses (i) through (iv). "Registered mortgage loan originator" means any individual
who (i) takes an application for or offers or negotiates the terms of a
residential mortgage loan in which the dwelling is or will be located in the
Commonwealth "Residential mortgage loan" means any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling or residential real estate upon which is constructed or intended to be constructed a dwelling. "Unique identifier" means a number or other identifier assigned by protocols established by the Registry that permanently identifies a mortgage loan originator. §6.2-1701. License requirement. A. No individual shall engage in the business of a mortgage loan originator unless such individual has first obtained and maintains annually a license under this chapter. B. The following shall be exempt from licensing and other provisions of this chapter: 1. Any individual engaged solely as a loan processor or
underwriter 2. Any individual who only performs administrative or clerical
tasks on behalf of a 3. Any individual who only performs real estate brokerage activities and is licensed or registered in accordance with applicable law, unless the individual is compensated directly or indirectly by the lender, a mortgage broker, or other mortgage loan originator or by any agent of such lender, mortgage broker, or other mortgage loan originator; 4. Any individual solely involved in extensions of credit relating to timeshare plans, as that term is defined in 11 U.S.C. §101(53D); 5. A registered mortgage loan originator; 6. Any individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual; 7. Any individual who 8. A licensed attorney 9.
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