SB 654 — Amending definition of "mortgage loan originator"

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Red = new code to be enacted WEST virginia legislature regular session IntroducedCommittee Substitute for Senate Bill 654 By Senator AzingerAzinger, [Introducedoriginal Februarysponsor 18,[Originating 2019;in the Committee on Banking and Insurance;

ReferredReported toon theFebruary Committee21, on2019] Banking  and  Insurance] A BILL to amend and reenact §31-17A-2 of the Code of West Virginia, 1931, as amended, relating to amending an exception under the definition of “mortgage loan originator”;originator” related to retailers of manufactured or modular homes.

and clarifying the definition.

(d) “Federal banking agencies” means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the National Credit Union AdministrationAdministration, and the Federal Deposit Insurance Corporation;

(e) “Immediate family member” means a spouse, child, sibling, parent, grandparentgrandparent, or grandchild.

This includes stepparents, stepchildren, stepsiblingsstepsiblings, and adoptive relationships;

and (g) “Loan processor or underwriter” means an individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a person licensed or exempt from licensing under article§31-17-1 seventeenet ofseq. this chapter.

of this code;

or (2) An individual engaging solely in loan processor or underwriter activities shall not represent to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate listslists, or other promotional items, that such individual can or will perform any of the activities of a mortgage loan originator;

(h) “Mortgage loan originator” means an individual who for compensation or gain or in the expectation of compensation or gain takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan and is sponsored by a mortgage lender, brokerbroker, or regulated consumer lender licensed by the Division of Financial Institutions.

(3) A person or entity that only performs real estate brokerage activities and is licensed or registered in accordance with West Virginia law, unless the person or entity is compensated by a lender, a mortgage brokerbroker, or other mortgage loan originatororiginator, or by any agent of such lender, mortgage brokerbroker, or other mortgage loan originator;

or (5) A manufactured or modular home retailer employee who performs purely administrative or clerical tasks and who receives only the customary salary or commission from the employer in connection with the sales transaction A retailer of manufactured or modular homes orand anany employee of thesuch retailerretailer, if the retailer or employee, as applicable:

(A) Does not receive compensation or gain for engaging in activities described in subsection (h) of this section,subsection that is in excess of any compensation or gain received in a comparable cash transaction;

(B) DisclosesWhen informing a consumer about one or more mortgage lenders, discloses to the consumer:consumer in writing, signed by the consumer, any corporate affiliation with any mortgage lender:

(i)Provided, InThat writing,if anythe retailer or employee has a corporate affiliation with any mortgage lender;lender, at least one unaffiliated mortgage lender must be identified to the consumer in writing, signed by the consumer;

and(C) (ii)Does Ifnot thedirectly retailernegotiate haswith athe corporateconsumer affiliationor withmortgage anylender mortgageon lender,loan atterms, leastincluding onerates, unaffiliatedfees, mortgageand lender;other costs;

(C)and (D) Does not directlyrepresent negotiateto with the consumerpublic, through advertising or mortgageother lendermeans onof loancommunicating termsor (includingproviding rates,information, fees,including andthe use of business cards, stationery, brochures, signs, rate lists, social media, or other costs);promotional items, that the retailer or employee can or will perform the activities described in this subsection;

and (D) Does not represent to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, social media, or other promotional items, that the individual can or will perform the activities described in subsection (h) of this section.

(2) Bringing together parties interested in the sale, purchase, lease, rentalrental, or exchange of real property;

(3) Negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rentalrental, or exchange of real property other than in connection with providing financing with respect to any such transaction;

and (5) Offering to engage in any activity, or act in any capacity, described in subsection§31-17A-2(i)(1) (1),through (2),§31-17A-2(i)(4) (3) or (4) of this section;code;

(j) “Nationwide Mortgage Licensing System and 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 brokers and lenders licensed pursuant to article§31-17-1 seventeenet ofseq. this chapter and mortgage loan originators licensed pursuant to this article;

of this code and mortgage loan originators licensed pursuant to this article;

(l) “Person” means a natural person, corporation, company, limited liability company, partnershippartnership, or association;

(n) “Residential mortgage loan” means any loan primarily for personal, family or household use that is secured by a mortgage, deed of trusttrust, or other equivalent consensual security interest on a dwelling as defined in Section 103(w) of the Truth in Lending Act or residential real estate upon which a dwelling is constructed or intended to be constructed a dwelling;

(o) “Residential real estate” means any real property located in West Virginia,Virginia upon which a dwelling is constructed or intended to be constructed a dwelling;

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