§ 6.2-1616. (Effective October 1, 2010) Other prohibitions applicable tomortgage brokers.
A. As used in this section, "person affiliated," when used with referenceto another person, means (i) any person who is a subsidiary, stockholder,partner, trustee, director, officer or employee of the other person or (ii)any corporation 10 percent or more of the capital stock of which is owned bythe other person or by any person who is a subsidiary, stockholder, partner,trustee, director, officer, or employee of the other person.
B. No mortgage broker required to be licensed under this chapter shall:
1. Except for documented costs of credit reports and appraisals, receivecompensation from a borrower until a written commitment to make a mortgageloan is given to the borrower by a mortgage lender;
2. Receive compensation from a mortgage lender of which he is a principal,partner, trustee, director, officer, or employee;
3. Receive compensation from a borrower in connection with any mortgage loantransaction in which he is the lender or a principal, partner, trustee,director, or officer of the lender;
4. Receive compensation from a borrower other than that specified in awritten agreement signed by the borrower;
5. Receive compensation for negotiating, placing or finding a mortgage loanwhere such mortgage broker, or any person affiliated with the mortgagebroker, has otherwise acted as a real estate broker, agent or salesman inconnection with the sale of the real estate which secures the mortgage loanand such mortgage broker or person affiliated with the mortgage broker hasreceived or will receive any other compensation or thing of value from thelender, borrower, seller or any other person, unless the borrower is giventhe following notice in writing at the time the mortgage broker services arefirst offered to the borrower:
NOTICE
WE HAVE OFFERED TO ASSIST YOU IN OBTAINING A MORTGAGE LOAN. IF WE ARESUCCESSFUL IN OBTAINING A LOAN FOR YOU, WE WILL CHARGE AND COLLECT FROM YOU AFEE OF ________ % OF THE LOAN AMOUNT.
WE DO NOT REPRESENT ALL OF THE LENDERS IN THE MARKET AND THE LENDERS WE DOREPRESENT MAY NOT OFFER THE LOWEST INTEREST RATES OR BEST TERMS AVAILABLE TOYOU. YOU ARE FREE TO SEEK A LOAN WITHOUT OUR ASSISTANCE, IN WHICH EVENT YOUWILL NOT BE REQUIRED TO PAY US A FEE FOR THAT SERVICE.
IF YOU ARE A MEMBER OF A CREDIT UNION YOU SHOULD COMPARE OUR INTEREST RATESAND TERMS WITH THE MORTGAGE LOANS AVAILABLE THROUGH YOUR CREDIT UNION.
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BORROWER'S SIGNATURE
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BORROWER'S SIGNATURE
The foregoing notice shall be in at least 10-point type and the prospectiveborrower shall acknowledge receipt of the written notice; or
6. Fail to use reasonable skill, care, and diligence in exercising thebroker's duty, which duty is hereby created, to make reasonable efforts tosecure a mortgage loan that is in the best interests of the applicant,considering the applicant's circumstances and loan characteristics, includingbut not limited to the product type, rates, charges, and repayment terms ofthe loan.
C. Notwithstanding the provisions of subdivision B 5, no person shall act asa mortgage broker in connection with any real estate sales transaction inwhich such person, or any person affiliated with such person, has acted as areal estate broker, agent, or salesman and has received or will receivecompensation in connection with such transaction, unless such person wasregularly engaged in acting as a mortgage broker in the Commonwealth as ofFebruary 25, 1989.
(1987, c. 596, § 6.1-422; 1989, c. 667; 1993, c. 183; 1997, c. 228; 2001, cc.502, 511; 2009, cc. 189, 261; 2010, c. 794.)
§ 6.2-1616. (Effective October 1, 2010) Other prohibitions applicable tomortgage brokers.
A. As used in this section, "person affiliated," when used with referenceto another person, means (i) any person who is a subsidiary, stockholder,partner, trustee, director, officer or employee of the other person or (ii)any corporation 10 percent or more of the capital stock of which is owned bythe other person or by any person who is a subsidiary, stockholder, partner,trustee, director, officer, or employee of the other person.
B. No mortgage broker required to be licensed under this chapter shall:
1. Except for documented costs of credit reports and appraisals, receivecompensation from a borrower until a written commitment to make a mortgageloan is given to the borrower by a mortgage lender;
2. Receive compensation from a mortgage lender of which he is a principal,partner, trustee, director, officer, or employee;
3. Receive compensation from a borrower in connection with any mortgage loantransaction in which he is the lender or a principal, partner, trustee,director, or officer of the lender;
4. Receive compensation from a borrower other than that specified in awritten agreement signed by the borrower;
5. Receive compensation for negotiating, placing or finding a mortgage loanwhere such mortgage broker, or any person affiliated with the mortgagebroker, has otherwise acted as a real estate broker, agent or salesman inconnection with the sale of the real estate which secures the mortgage loanand such mortgage broker or person affiliated with the mortgage broker hasreceived or will receive any other compensation or thing of value from thelender, borrower, seller or any other person, unless the borrower is giventhe following notice in writing at the time the mortgage broker services arefirst offered to the borrower:
NOTICE
WE HAVE OFFERED TO ASSIST YOU IN OBTAINING A MORTGAGE LOAN. IF WE ARESUCCESSFUL IN OBTAINING A LOAN FOR YOU, WE WILL CHARGE AND COLLECT FROM YOU AFEE OF ________ % OF THE LOAN AMOUNT.
WE DO NOT REPRESENT ALL OF THE LENDERS IN THE MARKET AND THE LENDERS WE DOREPRESENT MAY NOT OFFER THE LOWEST INTEREST RATES OR BEST TERMS AVAILABLE TOYOU. YOU ARE FREE TO SEEK A LOAN WITHOUT OUR ASSISTANCE, IN WHICH EVENT YOUWILL NOT BE REQUIRED TO PAY US A FEE FOR THAT SERVICE.
IF YOU ARE A MEMBER OF A CREDIT UNION YOU SHOULD COMPARE OUR INTEREST RATESAND TERMS WITH THE MORTGAGE LOANS AVAILABLE THROUGH YOUR CREDIT UNION.
____________________________
BORROWER'S SIGNATURE
____________________________
BORROWER'S SIGNATURE
The foregoing notice shall be in at least 10-point type and the prospectiveborrower shall acknowledge receipt of the written notice; or
6. Fail to use reasonable skill, care, and diligence in exercising thebroker's duty, which duty is hereby created, to make reasonable efforts tosecure a mortgage loan that is in the best interests of the applicant,considering the applicant's circumstances and loan characteristics, includingbut not limited to the product type, rates, charges, and repayment terms ofthe loan.
C. Notwithstanding the provisions of subdivision B 5, no person shall act asa mortgage broker in connection with any real estate sales transaction inwhich such person, or any person affiliated with such person, has acted as areal estate broker, agent, or salesman and has received or will receivecompensation in connection with such transaction, unless such person wasregularly engaged in acting as a mortgage broker in the Commonwealth as ofFebruary 25, 1989.
(1987, c. 596, § 6.1-422; 1989, c. 667; 1993, c. 183; 1997, c. 228; 2001, cc.502, 511; 2009, cc. 189, 261; 2010, c. 794.)
§ 6.2-1616. (Effective October 1, 2010) Other prohibitions applicable tomortgage brokers.
A. As used in this section, "person affiliated," when used with referenceto another person, means (i) any person who is a subsidiary, stockholder,partner, trustee, director, officer or employee of the other person or (ii)any corporation 10 percent or more of the capital stock of which is owned bythe other person or by any person who is a subsidiary, stockholder, partner,trustee, director, officer, or employee of the other person.
B. No mortgage broker required to be licensed under this chapter shall:
1. Except for documented costs of credit reports and appraisals, receivecompensation from a borrower until a written commitment to make a mortgageloan is given to the borrower by a mortgage lender;
2. Receive compensation from a mortgage lender of which he is a principal,partner, trustee, director, officer, or employee;
3. Receive compensation from a borrower in connection with any mortgage loantransaction in which he is the lender or a principal, partner, trustee,director, or officer of the lender;
4. Receive compensation from a borrower other than that specified in awritten agreement signed by the borrower;
5. Receive compensation for negotiating, placing or finding a mortgage loanwhere such mortgage broker, or any person affiliated with the mortgagebroker, has otherwise acted as a real estate broker, agent or salesman inconnection with the sale of the real estate which secures the mortgage loanand such mortgage broker or person affiliated with the mortgage broker hasreceived or will receive any other compensation or thing of value from thelender, borrower, seller or any other person, unless the borrower is giventhe following notice in writing at the time the mortgage broker services arefirst offered to the borrower:
NOTICE
WE HAVE OFFERED TO ASSIST YOU IN OBTAINING A MORTGAGE LOAN. IF WE ARESUCCESSFUL IN OBTAINING A LOAN FOR YOU, WE WILL CHARGE AND COLLECT FROM YOU AFEE OF ________ % OF THE LOAN AMOUNT.
WE DO NOT REPRESENT ALL OF THE LENDERS IN THE MARKET AND THE LENDERS WE DOREPRESENT MAY NOT OFFER THE LOWEST INTEREST RATES OR BEST TERMS AVAILABLE TOYOU. YOU ARE FREE TO SEEK A LOAN WITHOUT OUR ASSISTANCE, IN WHICH EVENT YOUWILL NOT BE REQUIRED TO PAY US A FEE FOR THAT SERVICE.
IF YOU ARE A MEMBER OF A CREDIT UNION YOU SHOULD COMPARE OUR INTEREST RATESAND TERMS WITH THE MORTGAGE LOANS AVAILABLE THROUGH YOUR CREDIT UNION.
____________________________
BORROWER'S SIGNATURE
____________________________
BORROWER'S SIGNATURE
The foregoing notice shall be in at least 10-point type and the prospectiveborrower shall acknowledge receipt of the written notice; or
6. Fail to use reasonable skill, care, and diligence in exercising thebroker's duty, which duty is hereby created, to make reasonable efforts tosecure a mortgage loan that is in the best interests of the applicant,considering the applicant's circumstances and loan characteristics, includingbut not limited to the product type, rates, charges, and repayment terms ofthe loan.
C. Notwithstanding the provisions of subdivision B 5, no person shall act asa mortgage broker in connection with any real estate sales transaction inwhich such person, or any person affiliated with such person, has acted as areal estate broker, agent, or salesman and has received or will receivecompensation in connection with such transaction, unless such person wasregularly engaged in acting as a mortgage broker in the Commonwealth as ofFebruary 25, 1989.
(1987, c. 596, § 6.1-422; 1989, c. 667; 1993, c. 183; 1997, c. 228; 2001, cc.502, 511; 2009, cc. 189, 261; 2010, c. 794.)
