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Banking and Finance
Charitable corporations serving as trustees of certain charitable trusts. Clarifies and validates the existing practice of some schools and charitable corporations that now serve as trustees of various split-interest trusts and pooled income funds. Current law prohibits most corporations from serving as trustees of charitable trusts.
Patron - Howell
CRESPA; depositing funds in conjunction with an escrow, settlement or closing. Provides that funds deposited with a settlement agent must be deposited no later than the second business day.
Patron - Jones, J.C.
Money order sales and money transmission services. Eliminates the requirement that a licensee have a physical presence in Virginia, so long as transactions are being conducted by Virginia citizens. Applicants for licenses are now required to submit audited financial statements and have a minimum net worth between $100,000 and $1 million. The penalty for unlicensed entities engaging in these regulated businesses is raised from a Class 3 misdemeanor to a Class 1 misdemeanor. The State Corporation Commission has enhanced examination powers over licensees, may examine licensees in conjunction with the regulatory authorities of other states, and may now impose civil penalties for violations.
Patron - Woodrum
Mortgage Lender and Broker Act; exemption for real estate brokers. Allows a real estate broker who is either an owner of an interest in a real estate firm or acts as a real estate broker in a sole proprietorship from having an ownership interest in a mortgage broker or lender or from receiving returns on investment arising from such ownership or payment of compensation for services actually performed for the mortgage broker or lender.
Patron - Plum
Mortgage lenders; notice of change of address to insurers. Requires mortgage lenders holding money in escrow for insurance premiums to notify the insurer in writing within the later of 30 days of a change of the mortgage lender's billing address, or 60 days prior to the renewal date of the insurance policy.
Patron - McDonnell
Bank investments. Authorizes any controlled subsidiary corporation to engage in any business that is authorized by statute, regulation or official interpretation for a subsidiary of a national bank or an out-of-state state bank. A controlled subsidiary corporation is redefined to be a corporation that is controlled by a Virginia-chartered bank, or controlled by more than one bank if at least one of the banks is chartered in this state.
Patron - Dudley
Mortgage loans; prohibited practices. Prohibits mortgage lenders and brokers from flipping mortgage loans. "Flipping" a mortgage loan means refinancing a mortgage loan within 12 months after the refinanced loan was originated, when the new loan does not result in any benefit to the borrower considering all of the circumstances. The Attorney General's office is authorized to enforce the prohibition.
Patron - Clement
Mortgage lenders and brokers; predatory lending practices. Increases the maximum penalty for a violation of the Mortgage Lender and Broker Act from $1,000 to $2,500, and increases the amount of the bond that mortgage lenders and brokers are required to post from $5,000 to $25,000. The measure also prohibits a mortgage lender from recommending or encouraging a person to default on an existing loan or other debt, if such default adversely affects such person's credit worthiness, in connection with the solicitation or making of a refinancing mortgage loan.
Patron - McEachin
Escrow accounts; disbursement of funds. Provides exceptions to the procedures for disbursing escrow funds to persons other than the settlement agent. Title insurance premiums payable to title insurers and agents may be (i) held in the settlement agent's escrow account, (ii) disbursed in the form of a check, or (iii) transferred into a separate title insurance premium escrow account. These transferred title insurance premium funds shall be itemized and identified within the separate title insurance premium escrow account. The bill also permits the settlement agent to hold funds in escrow pursuant to written instruction or agreement.
Patron - Blevins
Consumer Finance Act loans. Repeals restrictions that currently limit the maximum amount of Consumer Finance Act loans to $6,000, and limit the maximum term of such loans at 61 months. The measure also authorizes licensed lenders to impose late charges, not to exceed five percent of the delinquent loan installment, and to charge loan processing fees.
Patron - Norment
Charges on installment loans. Permits banks and savings institutions to impose finance charges and other charges and fees at such rates and in such amounts on installment loans as the borrower may agree.
Patron - Stosch
Mortgage brokers. Clarifies that bona fide employees and exclusive agents of a licensed mortgage broker may negotiate, place or find mortgage loans without obtaining their own license under the Mortgage Lender and Broker Act.
Patron - Colgan
Money and interest; interest rate for certain types of loans. Caps the interest rate at eight percent annually for loans to individuals secured by the assignment of, or payable upon the individual's receipt of, a settlement or award in a personal injury case.
Patron - Robinson
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© 2001 by the Division of Legislative Services.
2001 SUMMARY HOME |
DLS | GENERAL