RICHMOND — The State Corporation Commission (SCC) has adopted new requirements that will change the way mortgage lenders and brokers licensed in Virginia hire and train many of their employees. The requirements, which implement new provisions of the Virginia Mortgage Lender and Broker Act approved by the 2008 General Assembly, become effective August 10, 2008.

The changes in the law and the corresponding regulations provide additional protections to consumers obtaining mortgage loans.

The new regulations define what constitutes a licensee, senior officer, covered employee, customer, and dwelling under the Mortgage Lender and Broker Act. They also define what is meant by “personal, family or household purposes” and “personal identifying or financial information” under the Act. They require licensed firms to obtain criminal history records of applicants for certain positions, and prohibit the firms from hiring individuals who have been convicted of a felony or any misdemeanor involving fraud, misrepresentation, or deceit. The regulations permit licensed firms to request an exemption from the employment prohibition. The new requirements also ensure that mortgage lenders and brokers receive adequate initial and continuing education in applicable state and federal mortgage lending laws and regulations.

The Mortgage Lender and Broker Act governs the licensing and activities of mortgage lenders and brokers in Virginia. Originally enacted in 1987, the Act has been amended over the years in response to changes in that industry. It prohibits certain predatory practices by mortgage lenders and brokers and requires the SCC to conduct examinations of licensed firms. There are currently 84 mortgage lenders, 1,460 mortgage brokers, and 437 mortgage lender/brokers licensed to do business in Virginia.

The SCC’s Bureau of Financial Institutions can assist consumers with questions and complaints. For more information about a mortgage lender or broker or to find out if it is licensed in Virginia, call the Bureau at 1-800-552-7945 (toll-free in Virginia) or in Richmond at (804) 371-9657 or visit its website at http://www.viriginia.gov/bfi.

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