Banking and Finance

Passed

P HB1156

Payday lending practices. Prohibits a licensed payday lender from entering into a payday loan with a member of the armed forces from a location that has been declared off-limits by a military base commander. With respect to payday loans to military personnel or their spouses, lenders shall not garnish military wages or conduct collection activities when the service member is deployed to a combat or combat support posting. The measure also clarifies that loans based on income tax refunds are not payday loans, and prohibits unlicensed person from engaging in payday loans or arranging or brokering payday loans for consumers residing in Virginia, whether or not the lender has a location in Virginia.
Patron - Morgan

P HB1586

Consumer Real Estate Settlement Protection Act; separate charge limited. Prohibits settlement agents from charging more than $10 for complying with requirements that settlement agents collect, maintain, and report to the Department of Taxation information regarding transactions involving the transfer of title to real estate. This bill is identical to SB 875.
Patron - Reese

P HB1777

Consumer Finance Act licensing. Requires a person to seek approval from the State Corporation Commission prior to acquiring 25 percent or more of the ownership interest in a lender licensed under the Consumer Finance Act. The measure also updates the Act by modifying the contents of the application for licensure, establishing qualifications for principals of new licensees, and requiring licensees to give notice to the Commissioner of the Bureau of Financial Institutions of the opening or closing of offices and of changes in senior officers, members, partners, and directors.
Patron - Purkey

P HB2010

Judgment rate of interest. Provides that the rate of interest on a judgment is that rate in effect at the time of entry of the judgment, and is not affected by any subsequent changes to the statutory rate of interest.
Patron - Armstrong

P HB2061

Virginia Economic Development Revolving Fund; community development financial institution. Eliminates the Virginia Economic Development Revolving Fund and provides for the transfer of the Fund's assets and associated records from the Small Business Financing Authority to an eligible qualifying community development financial institution, upon approval by the Secretary of Commerce and Trade. The bill requires the Secretary of Commerce of Trade to report to the General Assembly by December 1, 2005.
Patron - Landes

P HB2457

Money transmission services; exemption from licensure. Exempts a person, firm, corporation or other entity from the requirement that it be licensed by the State Corporation Commission to engage in the business of money transmission, to the extent of providing money transmission services to or for banks or other financial institutions.
Patron - Ware, R.L.

P HB2460

Credit counseling. Eliminates the requirement that licensed credit counseling agencies be nonprofit, tax-exempt organizations. The measure also requires that an applicant for licensure as a credit counseling agency not be the subject of a current material administrative or regulatory proceeding and not have received a material adverse determination in any past administrative or regulatory proceedings. An applicant is also required to file a consumer disclosure form with the State Corporation Commission.
Patron - Nixon

P HB2571

Business of banks. Enumerates the business activities in which banks are authorized to engage. Banks are authorized to engage directly in activities in which a controlled subsidiary corporation may engage, including transacting business as a real estate brokerage firm. Other enumerated business activities include acting as an agent in the sale of insurance and annuities; dealing in or making a market in securities; providing financial, investment, or economic advisory services; and providing other products and services that the State Corporation Commission deems to be financial in nature.
Patron - Dudley

P SB776

Use of the name, logo or symbol of a financial institution; penalty. Prohibits any person from using the name, logo or symbol of a bank, trust company, savings institution, or credit union, or a deceptively similar name, logo or symbol, in any marketing material in a manner that would cause a reasonable person to believe that the material is from the financial institution. A violation is punishable as a Class 1 misdemeanor. In addition, a financial institution whose name, logo or symbol is used in such manner is entitled to injunctive relief, the destruction of the material, and a private action for damages, disgorgement of profit, and attorneys' fees, under the Virginia Trademark and Service Mark Act.
Patron - Potts

P SB875

P SB936

Revolving credit agreements. Affirms that a state bank or savings institution is authorized to amend the terms of a revolving credit agreement by following the procedures set forth in the agreement for effecting changes in its terms, subject to compliance with the federal Truth in Lending Act. This provision is stated to be declaratory of existing law. The measure also specifies that, unless a contract or plan otherwise expressly provides, the lender may amend the contract or plan in any respect at any time and from time to time, whether or not the amendment or the subject of the amendment was originally contemplated or addressed by the lender and borrower or is integral to their relationship.
Patron - Stosch

P SB1029

Mortgage loans by state banks. Eliminates requirements that certain mortgage loans be amortized by periodic payments of principal and interest or by regular payments of principal. A provision of the Code that allows the Commissioner of Financial Institutions to authorize investment in mortgage loans that provide for lesser payments during early periods of maturity of such loans is eliminated. This bill incorporates SB 974.
Patron - Newman

Failed

F HB1575

Consumer Real Estate Settlement Protection Act; separate charge prohibited. Prohibits settlement agents from making a separate charge on a settlement statement for complying with requirements that settlement agents collect, maintain, and report to the Department of Taxation information regarding transactions involving the transfer of title to real estate. Though the cost of compliance with such requirements may not be assessed as a separate charge, settlement agents are not prohibited from taking this cost into account in establishing their charges for performing escrow, closing or settlement services.
Patron - Albo

F HB1623

Interest rates incurred for certain debts for health care services. Provides that the rate of interest that may be charged with respect to an outstanding debt of an indigent person to a health care provider, or its assignee, which debt (i) was incurred by the indigent person as a result of the provision of health care services by the health care provider to the indigent person, (ii) has remained unpaid for 30 or more days following the provision of such health care services, and (iii) has been assigned by the health care provider to a debt collection agency for collection purposes, shall not exceed an annual rate of four percent.
Patron - Purkey

F HB1864

Payday lending; database; rollovers. Requires the establishment, by July 1, 2006, of a database that must be accessed by payday lenders prior to making a payday loan, in order to determine whether the person applying for the loan has an outstanding payday loan or has terminated a payday loan within the preceding 24 hours. The measure also requires payday lenders to check an internal database and to obtain a certification from the person, in order to confirm that the person does not have an outstanding payday loan and has not terminated a payday loan within the preceding 24 hours, and prohibits payday lenders from making loans to such persons. Finally, lenders are prohibited from engaging in the rollover of payday loans.
Patron - Morgan

F HB1886

Money transmission services; exemption from licensure. Exempts a person from the requirement that it be licensed by the State Corporation Commission to engage in the business of money transmission, if the person provides money transmission services, directly or through a wholly owned subsidiary, only to a bank or other financial institution.
Patron - Ware, R.L.

F HB1961

Payday lending; rollovers; database. Requires the State Corporation Commission on or before July 1, 2006, to contract with a third party to establish and administer a database with real-time access through an Internet connection to ensure compliance with the Payday Loan Act. The measure also prohibits payday lenders from entering into a payday loan with a person who has an outstanding payday loan with that licensee or affiliate or with any other payday lender, or with a person whose previous payday loan has been terminated for less than 30 days, and from extending or continuing a payday loan where the lender continues to hold the borrower's check or substitutes a new check.
Patron - Jones, D.C.

F SB824

Payday loans. Excludes any loan made in conjunction with tax return preparation or electronic filing services by a commercial entity that is approved by the Internal Revenue Service as an e-file provider from the definition of a payday loan.
Patron - Williams

F SB886

Consumer Finance Act; motor vehicle title loans. Makes revolving loans that are secured by a non-purchase-money security interest in a motor vehicle subject to the provisions of the Consumer Finance Act if they are for amounts of less than $6,000 and are made for personal, family, household, or other nonbusiness purposes. Currently, revolving loans are exempt from the Consumer Finance Act. The maximum annual rate of interest on loans subject to the Consumer Finance Act of up to $2,500 is 36 percent.
Patron - Bell

F SB974

Interest-only mortgage loans. Authorizes banks to make interest-only loans by eliminating the requirement that mortgage loans with a loan-to-value ratio of less than 50 percent be amortized by payments of principal. This bill has been incorporated into SB 1029.
Patron - O'Brien

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