§ 6.2-328. (Effective October 1, 2010) Charges allowed on loan secured bysubordinate mortgage.
A. Any lender making a loan secured by a subordinate mortgage or deed oftrust may require the borrower to pay, in addition to the loan fee andinterest permitted by § 6.2-327, the actual cost of a credit report, titleexamination, title insurance, mortgage guaranty insurance, recording fees,surveys, attorney fees, appraisal fees, and a fee to determine if theproperty securing the loan is located in a special flood hazard area. Noother charges of any kind shall be imposed on or be payable by the borrowereither to the lender or any other party in connection with such loan otherthan:
1. A fee charged by the settlement agent as defined in § 55-525.16;
2. Late charges in the amount specified in § 6.2-400 and a prepayment penaltypermitted under § 6.2-423 that are contracted for; and
3. Upon default, court costs, attorney fees, trustee's commission, and otherexpenses of collection to which the borrower may be subject as otherwisepermitted by law.
B. Broker's or finder's fees may be paid by the lender from the loan fee orinterest permitted under § 6.2-327. A broker's fee, finder's fee, orcommission not to exceed five percent of the principal amount of the loan maybe paid by the borrower if the total of the loan fee permitted under §6.2-327 and the broker's fee, finder's fee, or commission does not exceedfive percent of the principal amount of the loan.
C. The premium for any insurance required or provided pursuant to § 6.2-411shall not be considered a charge imposed on or payable by the borrower inconnection with the loan.
D. No charge may be imposed or collected, except as permitted by § 6.2-327,if the loan is not made.
E. This section shall not apply to any loan made by (i) a bank, savingsinstitution, industrial loan association, or credit union or (ii) a seller ina real estate sales transaction who takes a subordinate mortgage or deed oftrust on such real estate.
F. The borrower under any loan to which the provisions of this section applymay assert any defense or claim he may have under §§ 6.2-304 and 6.2-305against any assignee or transferee of the contract of indebtedness.
(1987, c. 622, § 6.1-330.72; 1993, c. 774; 1995, c. 75; 1996, c. 243; 1998,cc. 69, 89; 2010, c. 794.)
§ 6.2-328. (Effective October 1, 2010) Charges allowed on loan secured bysubordinate mortgage.
A. Any lender making a loan secured by a subordinate mortgage or deed oftrust may require the borrower to pay, in addition to the loan fee andinterest permitted by § 6.2-327, the actual cost of a credit report, titleexamination, title insurance, mortgage guaranty insurance, recording fees,surveys, attorney fees, appraisal fees, and a fee to determine if theproperty securing the loan is located in a special flood hazard area. Noother charges of any kind shall be imposed on or be payable by the borrowereither to the lender or any other party in connection with such loan otherthan:
1. A fee charged by the settlement agent as defined in § 55-525.16;
2. Late charges in the amount specified in § 6.2-400 and a prepayment penaltypermitted under § 6.2-423 that are contracted for; and
3. Upon default, court costs, attorney fees, trustee's commission, and otherexpenses of collection to which the borrower may be subject as otherwisepermitted by law.
B. Broker's or finder's fees may be paid by the lender from the loan fee orinterest permitted under § 6.2-327. A broker's fee, finder's fee, orcommission not to exceed five percent of the principal amount of the loan maybe paid by the borrower if the total of the loan fee permitted under §6.2-327 and the broker's fee, finder's fee, or commission does not exceedfive percent of the principal amount of the loan.
C. The premium for any insurance required or provided pursuant to § 6.2-411shall not be considered a charge imposed on or payable by the borrower inconnection with the loan.
D. No charge may be imposed or collected, except as permitted by § 6.2-327,if the loan is not made.
E. This section shall not apply to any loan made by (i) a bank, savingsinstitution, industrial loan association, or credit union or (ii) a seller ina real estate sales transaction who takes a subordinate mortgage or deed oftrust on such real estate.
F. The borrower under any loan to which the provisions of this section applymay assert any defense or claim he may have under §§ 6.2-304 and 6.2-305against any assignee or transferee of the contract of indebtedness.
(1987, c. 622, § 6.1-330.72; 1993, c. 774; 1995, c. 75; 1996, c. 243; 1998,cc. 69, 89; 2010, c. 794.)
§ 6.2-328. (Effective October 1, 2010) Charges allowed on loan secured bysubordinate mortgage.
A. Any lender making a loan secured by a subordinate mortgage or deed oftrust may require the borrower to pay, in addition to the loan fee andinterest permitted by § 6.2-327, the actual cost of a credit report, titleexamination, title insurance, mortgage guaranty insurance, recording fees,surveys, attorney fees, appraisal fees, and a fee to determine if theproperty securing the loan is located in a special flood hazard area. Noother charges of any kind shall be imposed on or be payable by the borrowereither to the lender or any other party in connection with such loan otherthan:
1. A fee charged by the settlement agent as defined in § 55-525.16;
2. Late charges in the amount specified in § 6.2-400 and a prepayment penaltypermitted under § 6.2-423 that are contracted for; and
3. Upon default, court costs, attorney fees, trustee's commission, and otherexpenses of collection to which the borrower may be subject as otherwisepermitted by law.
B. Broker's or finder's fees may be paid by the lender from the loan fee orinterest permitted under § 6.2-327. A broker's fee, finder's fee, orcommission not to exceed five percent of the principal amount of the loan maybe paid by the borrower if the total of the loan fee permitted under §6.2-327 and the broker's fee, finder's fee, or commission does not exceedfive percent of the principal amount of the loan.
C. The premium for any insurance required or provided pursuant to § 6.2-411shall not be considered a charge imposed on or payable by the borrower inconnection with the loan.
D. No charge may be imposed or collected, except as permitted by § 6.2-327,if the loan is not made.
E. This section shall not apply to any loan made by (i) a bank, savingsinstitution, industrial loan association, or credit union or (ii) a seller ina real estate sales transaction who takes a subordinate mortgage or deed oftrust on such real estate.
F. The borrower under any loan to which the provisions of this section applymay assert any defense or claim he may have under §§ 6.2-304 and 6.2-305against any assignee or transferee of the contract of indebtedness.
(1987, c. 622, § 6.1-330.72; 1993, c. 774; 1995, c. 75; 1996, c. 243; 1998,cc. 69, 89; 2010, c. 794.)
