This bill aims to amend the West Virginia Code regarding the documentation requirements for licensees in relation to fees or points associated with subordinate mortgage loans. Specifically, it modifies the existing requirement for licensees to document the tangible net benefit to the borrower in writing, removing the stipulation that this documentation must be on a form prescribed by the commissioner. Instead, the bill allows licensees to maintain this documentation in the loan file without a specific form requirement.

The bill also reiterates the maximum interest rate on subordinate loans, the rights of borrowers to prepay their debts, and the limitations on additional charges and fees. It emphasizes that no application fees are allowed unless they pertain to services provided by unrelated third parties, and it outlines various prohibitions on loan terms and practices to protect borrowers. Overall, the bill seeks to streamline documentation processes while maintaining consumer protections in the mortgage lending landscape.

Statutes affected:
Introduced Version: 31-17-8