Virginia Senate Bill 258 (Prior Session Legislation)

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Spectrum: Partisan Bill (Democrat 1-0)
Status: Introduced on January 8 2008 - 25% progression, died in chamber
Action: 2008-02-11 - Senate: Subject matter referred by letter to Housing Commission pursuant to Senate Rule 20 (L)

Mortgage lending practices; penalty. Prohibits any (i) mortgage lender or broker, (ii) person required to be licensed under the Mortgage Lender and Broker Act, and (iii) person exempt from the licensing requirements of the Mortgage Lender and Broker Act, other than a state or federally chartered bank, savings institution, or chartered credit union, or person making, providing, or arranging a mortgage loan originated or purchased by an agency of the Commonwealth or a locality, from arranging special mortgages unless the borrower has obtained a written certification from an authorized independent loan counselor on the advisability of the loan transaction. A special mortgage is a residential mortgage loan originated, subsidized, or guaranteed by or through an agency of the Commonwealth, a locality, or a nonprofit organization that has one or more nonstandard payment terms which substantially benefit the borrower. Such persons are also prohibited from (a) entering into subprime loans containing a provision requiring or permitting the imposition of a prepayment penalty or charge in the event the loan is prepaid and (b) making, providing, or arranging for a residential mortgage loan, other than a reverse mortgage, if the borrower's compliance with any repayment option will result in negative amortization during any six-month period. The measure expressly gives borrowers a private cause of action, in which they may seek recovery of damages, statutory damages equal to the amount of all lender fees included in the amount of the principal of the mortgage loan, punitive damages, costs, and reasonable attorney fees. Finally, the measure makes it unlawful to knowingly make or cause to be made any deliberate and material misstatement, misrepresentation, or omission during the mortgage lending process with the intention that it be relied on by a mortgage lender, borrower, or any other party to the mortgage lending process; to knowingly use or facilitate the use of any deliberate and material misstatement, misrepresentation, or omission, knowing the same to contain a material misstatement, misrepresentation, or omission, during the mortgage lending process with the intention that it be relied on by a mortgage lender, borrower, or any other party to the mortgage lending process. Violations are to be punishable as a Class 1 misdemeanor or, if a financial loss of greater than $200 results, a Class 6 felony. Second or subsequent convictions are punishable as a Class 6 felony. Violators shall also be required to pay restitution.

Mortgage lending and brokering practices; prohibitions and penalties.

Sen. Creigh Deeds [D]

Date	Chamber	Action
2008-02-11		Senate: Subject matter referred by letter to Housing Commission pursuant to Senate Rule 20 (L)
2008-02-11		Senate: Continued to 2009 in Commerce and Labor (8-Y 7-N)
2008-01-22		Senate: Assigned C&L sub: Financial Institutions & Insurance
2008-01-08		Senate: Referred to Committee on Commerce and Labor
2008-01-08		Senate: Prefiled and ordered printed; offered 01/09/08 086270220

Type	Source
Summary	https://lis.virginia.gov/cgi-bin/legp604.exe?081+sum+SB258