Virginia Origination Reference Guide
- Kacey Olson
Owned by Kacey Olson
Aug 30, 2017
6 min read
Loading data...
| Citation | Topic | Requirement |
| Mortgage Lender and Broker Act / Va. Code Ann. §6.2-1614 | Blank Spaces | Brokers and lenders are prohibited from obtaining any agreement or instrument in which blanks are left to be filled in after execution. |
| Mortgage Lenders and Mortgage Brokers / Va. Code Ann. §6.2-1614(7) | Borrowers Best Interest Worksheet (Optional Form) | This worksheet is for the purpose of determining whether a refinancing is in the borrower’s best interest. Requirement applies but no mandatory use of a specific worksheet. |
Choice of Settlement Agent | A purchaser or borrower in a transaction related to real estate in the Commonwealth must have the right to select the settlement agent to provide escrow, closing, or settlement services in connection with the transaction. The seller in such a transaction may not require the use of a particular settlement agent as a condition of the sale of the property. All contracts involving the purchase of real estate containing not more than 4 residential dwelling units must include in bold face, 10-point type the promulgated language regarding the choice of settlement agent. | |
| Rules Governing Mortgage Lenders and Brokers / 10 Va. Admin. Code §5-160-30 | Commitment Letter (Optional Form) | Lenders are not required to provide commitment agreements, but if a commitment agreement is given, it must include the following: (1) Identification of the property; (2) the principal amount and term of the loan; (3) the interest rate and points for the mortgage loan if the commitment agreement is also a lock-in agreement or a statement that the mortgage loan will be made at the mortgage lender's prevailing rate and points for such loans at the time of closing or a specified number of days prior to closing; (4) the amount of any commitment fee and the time within which the commitment fee must be paid; (5) whether or not funds are to be escrowed and for what purpose; (6) whether or not private mortgage insurance is required; (7) the length of the commitment period; (8)a statement that if the loan is not closed within the commitment period, the mortgage lender is no longer obligated by the commitment agreement and any commitment fee paid by the applicant will be refunded only under the following circumstances: (a) the commitment period was not a reasonable period of time given the prevailing market conditions at the time the commitment agreement was entered into; (b) the mortgage loan is turned down because of the applicant's lack of creditworthiness; (c) the mortgage loan is turned down because of the appraised value of the property intended to secure the mortgage loan; and such other circumstances as are set forth in the commitment agreement; and (9) any other terms and conditions of the commitment agreement required by the lender. |
| Mortgage Lender and Broker Act / Va. Code Ann. §6.2-1616(B) | Compensation | Broker may not receive compensation (except for document costs of credit report and appraisals) from a borrower until a written commitment to make a mortgage loan is given to the borrower by a mortgage lender |
| Property and Conveyances / Va. Code Ann. §55-525.10 | Disbursement of Loan Funds | A lender must cause disbursement of loan funds to the settlement agent at or before loan closing. However, in the case of a refinancing, or any other loan where a right of rescission applies, the lender must cause disbursement of loan funds to the settlement agent within 1 business day after the expiration of the rescission period required under TILA. The lender is not entitled to receive or charge any interest on the loan until disbursement of loan funds and loan closing has occurred. |
| Title Insurance / Va. Code Ann. §38.2-4616 | Disclosure of Availability of Owner's Title Insurance | The settlement agent, before the disbursement of any funds, must obtain from the purchaser a statement in writing that he has been notified by the settlement agent that the purchaser may wish to obtain owner's title insurance coverage including affirmative mechanics' lien coverage, if available, and of the general nature of the coverage, and that the purchaser does or does not desire the coverage. The notification must include language that the value of subsequent improvements to the property may not be covered. |
Document Preparation Fee | “It is the unauthorized practice of law for a mortgage banker to charge a document preparation fee on a deed of trust prepared by the mortgage banker.” "It is the unauthorized practice of law for a mortgage company to make a separate charge for the preparation of instruments affecting title to real estate in connection with a real estate mortgage closing. " | |
| Mortgage Lenders and Mortgage Brokers / Va. Code Ann. §6.2-1616 | Dual Capacity Disclosure | Must be provided at the time an entity first offers mortgage broker services to a borrower when such entity or affiliate has otherwise acted as a real estate broker, agent or salesman in connection with the sale of real estate. |
| Provisions of a General Nature / Va. Code Ann. §38.2-233(B) | Elective Credit Involuntary Unemployment Insurance (Optional Form) | When elective credit involuntary unemployment insurance is offered, the borrower must be given a written disclosure. |
| Certain Lending Practices / Va. Code Ann. §6.2-406 | First Mortgage Loan Application Disclosure | Must be provided at the time an application is submitted for a first mortgage loan that is secured by owner-occupied residential real estate consisting of 1-4-family dwelling units. This disclosure requires initialling and execution prior to mailing to applicants. |
| Mortgage Lenders and Brokers Act / Va. Code Ann. §6.2-1616(B)(4) | Mortgage Broker Agreement | A mortgage broker may not receive compensation from the borrower other than that specified in a written agreement signed by the borrower. |
| Administrative Code / 10 Va. Admin. Code §5-160-20(1) | NMLS Unique Identifier | NMLS identifier required on loan applications for all mortgage lenders, brokers, and originators. Every advertisement must also include NMLS unique identifier for the mortgage lender or mortgage broker. |
| Va. Code Ann. §55-520(B)(v) | Notice of Termination of Right to Cancel Real Estate Purchase Contract | A lender may terminate a purchaser's right to cancel by including in the mortgage loan application a disclosure stating that the purchaser's right to cancel will terminate upon submission of a written mortgage application to the lender. |
| Provisions of a General Nature / Va. Code Ann. §38.2-233(B) | Optional Insurance Disclosure | Must be provided if a lender offers credit property insurance or credit involuntary unemployment insurance. |
| Provisions of a General Nature / Va. Code Ann. §38.2-233(C) | Optional Insurance Disclosure for Single Premium Payment | Must be provided if a borrower is given a contract which includes a single premium payment to be charged for credit property insurance or credit involuntary unemployment insurance. |
| Administrative Rules / 10 Va. Admin. Code §5-160-20(6) | Preapproval Disclosure | Licensed mortgage lender or mortgage broker must not inform a consumer that the consumer has been or will be “preapproved” unless the licensee contemporaneously, or within 3 business days in the case of telephone communication, provides the consumer with a separate written disclosure. |
| Rules Governing Mortgage Lenders and Brokers / 10 Va. Admin. Code §5-160-30 | Rate Lock Agreement (Optional Form) | If a lock-in agreement is issued by a mortgage lender or mortgage broker to a borrower, it must be signed by a representative of the mortgage lender or mortgage broker and include the following: (1) the interest rate and points for the mortgage loan, and if the rate is an adjustable rate, the initial interest rate and a brief description of the method of determining the rate (such as the index and the margin); (2) the amount of any lock-in fee and the time within which the lock-in fee must be paid; (3) the length of the lock-in period; (4) a statement that if the loan is not closed within the lock-in period, the mortgage lender is no longer obligated by the lock-in agreement and any lock-in fee paid by the applicant will be refunded only if: (a) the lock-in period was not a reasonable period of time given the prevailing market conditions at the time the lock-in agreement was entered into, or (b) such other circumstances as are set forth in the lock-in agreement occur; (5) a statement that any terms not locked-in by the lock-in agreement are subject to change until the loan is closed at settlement; and (6) any other terms and conditions of the lock-in agreement required by the mortgage lender or mortgage broker acting on behalf of a mortgage lender. A mortgage broker must not issue a lock-in agreement to a borrower unless the mortgage broker has actually locked in the mortgage loan, including the applicable interest rate, points, and other terms, with a mortgage lender. A mortgage broker must maintain supporting written documentation from the mortgage lender of all lock-in information for at least 3 years from the date the lock-in expires. |