The bill amends Section 31-17-8 of the Code of West Virginia, 1931, to modify the documentation requirements for licensed residential mortgage lenders, brokers, or servicers regarding loan fees or points. It specifies that when loan origination fees, investigation fees, or points are charged, these charges cannot be imposed again during any refinancing or additional loan on the same property within 24 months unless the new loan provides a reasonable, tangible net benefit to the borrower. The licensee is required to document this benefit in writing and maintain it in the loan file.

Additionally, the bill clarifies that no application fee is allowed unless it pertains to services provided by unrelated third parties for appraisals, inspections, title searches, and credit reports. It also stipulates that borrowers may be required to reimburse the licensee for actual expenses incurred in a purchase money transaction if the loan is not consummated due to the borrower's willful failure to close or fraudulent representation. Overall, the bill aims to enhance consumer protection by ensuring transparency and accountability in the mortgage lending process.

Statutes affected:
Introduced Version: 31-17-8
Enrolled Version: 31-17-8