This bill aims to amend and reenact section 31-17-8 of the Code of West Virginia, which governs the regulations surrounding residential mortgage lenders, brokers, and servicers. A key modification includes the requirement for licensees to document the tangible net benefit to borrowers in writing when refinancing loans or taking out additional loans on the same property within 24 months. The previous requirement for this documentation to be on a form prescribed by the commissioner has been deleted, allowing for more flexibility in how this documentation is maintained.

Additionally, the bill clarifies that no application fees are allowed unless they pertain to services provided by unrelated third parties, and it outlines specific conditions under which a borrower may be required to reimburse the licensee for actual expenses incurred in a purchase money transaction that does not close. The bill also emphasizes the prohibition of charging fees not disclosed to the borrower and sets limits on the total fees and points that can be charged in relation to the loan amount. Overall, the bill seeks to enhance consumer protection by ensuring transparency and fairness in mortgage lending practices.

Statutes affected:
Introduced Version: 31-17-8