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PROFESSIONALS: Licensing: Non-
Depository:
Mortgage |
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MORTGAGE LICENSING AND REGULATION
NOTICE:
Pursuant to an Order entered by the Circuit Court of Kanawha County, the Commissioner must require licensed brokers and lenders to maintain, for a period of three (3) years, the following documents:
a) Initial loan applications signed and dated by the loan officer;
b) All communications to and from underwriters;
c) All rate sheets used or considered during the period;
d. All correspondent agreements with lenders to which loan applications are submitted; and
e) Records of all business relationships of owners, officers, employees with other brokers, lenders, appraisers, title companies, and closing attorneys.
Please take immediate steps to comply with this new recordkeeping requirement. Examiners will check for compliance in future examinations. The aforementioned documents will be examined in addition to loan documentation.
Additionally, beginning January 1, 2004, each licensee must maintain and report the following information for each loan, whether consummated or not:
a) The total number of loan applications taken or received.
b) The total number of loan applications taken in which the appraiser is headquartered more than 75 miles from the location of the property under appraisal. (For each loan, the name and address of the appraiser must be maintained in the loan file and each appraiser must be identified with the transactional data supplied to the Division of Banking with each Annual Report and Renewal Application submitted for loans transacted after January 1, 2004)
c) The total number of loans in which the total compensation paid or received is 0% to 3% of the loan amount.
d) The total number of loans in which the total compensation paid or received is 3.01% to 6% of the loan amount.
e) The total number of nonpurchase money West Virginia mortgage loans in each of the following categories: Up to 75% Loan-to-Value (LTV), 75.01% to 100% LTV and Over 100% LTV.
f) The total number of mortgages originated which contained prepayment penalties.
g) The total number of loans originated with balloon payments.
h) For the specific reporting period, the level (%) of loans closed by each of the following categories: Attorney(s), Title Companies, Licensee Staff and Other.
NOTICE TO ORIGINATOR LICENSE APPLICANTS:
The Division of Banking has established an objective, numerical standard in order to satisfy the financial responsibility requirement of our licensing statute.
Accordingly, a MINIMUM standard of 575 Beacon score is required as a threshold to meeting the financial responsibility standard. This is a cutoff of approximately the bottom 10% of the population, based upon data provided by Equifax.
Upon submission of a completed loan originator application or amendment application, the Division of Banking may obtain a current credit report and credit score. Credit reports will also be obtained upon submission of renewal applications.
Effective immediately, applicants with credit scores below 500 will not meet the statutory factor of financial responsibility.
An applicant whose credit score is equal to or above 500 may be considered for licensing if the applicant submits, within FIFTEEN calendar days of receipt of notification of a score between 500 and 575, an explanation for the score, together with supporting documentation and a detailed description of the plan to improve the applicant’s financial position.
Applications are available online at this website or by
request in writing to:
Mortgage Division
State Capitol Complex
Building 3, Room 311
Charleston, WV 25305-024
Fingerprint forms cannot be provided on this site and must be obtained directly from the West Virginia
Division of Banking.
Questions regarding mortgage regulation and
statutory interpretation must be addressed in writing to the address
provided above.
Please refer to the following document for additional
information:
WV Mortgage Lender/Broker License Application
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