                                 CODE OF VIRGINIA

PROHIBITED PRACTICES (§ 6.2-1416)

A. No association shall:

   1. Obtain any agreement or instrument in which blanks are left to be filled in
   after execution;

   2. Take an interest in collateral other than the real estate or residential
   property, including fixtures and appliances thereon, securing a mortgage loan;
   however, an interest in collateral other than real estate may be taken if the
   real estate taken as collateral does not have sufficient equity to secure the
   mortgage loan;

   3. Obtain any exclusive dealing or exclusive agency agreement from any
   borrower;

   4. Delay closing of any mortgage loan for the purpose of increasing interest,
   costs, fees, or charges payable by the borrower;

   5. Obtain any agreement or instrument executed by the borrower which contains
   an acceleration clause permitting the unpaid balance of a mortgage loan to be
   declared due for any reason other than failure to make timely payments of
   interest and principal or to perform other obligations undertaken in the
   agreement or instrument; or

   6. If acting as a mortgage lender, fail to require the person closing the
   mortgage loan to provide the borrower, prior to closing of the mortgage loan,
   with a (i) settlement statement and (ii) disclosure which conforms to that
   required by the provisions of 15 U.S.C. &#xA7; 1601 et seq. and Consumer
   Financial Protection Bureau Regulation Z (12 C.F.R. Part 1026).

B. No association, when acting as a mortgage broker, shall:

   1. Except for documented costs of a credit report and appraisals, receive
   compensation from a borrower until a written commitment to make a mortgage
   loan is given to the borrower by a mortgage lender;

   2. Receive compensation from a mortgage lender of which it is a principal,
   partner, trustee, director, officer, or employee;

   3. Receive compensation from a borrower in connection with any mortgage loan
   transaction in which it is the lender or a principal, partner, trustee,
   director, or officer of the lender;

   4. Receive compensation from a borrower other than that specified in a written
   agreement signed by the borrower; or

   5. Receive compensation for negotiating, placing or finding a mortgage loan
   where such association, or any person affiliated with such association, has
   otherwise acted as a real estate broker, agent, or salesman in connection with
   the real estate which secures the mortgage loan, and such association or
   affiliated person has received or will receive any other compensation or thing
   of value from the lender, borrower, seller, or any other person, unless the
   borrower is given the following notice in writing at the time the mortgage
   broker services are first offered to the borrower:
   				NOTICE
   				WE HAVE OFFERED TO ASSIST YOU IN OBTAINING A MORTGAGE LOAN. IF WE ARE
   SUCCESSFUL IN OBTAINING A LOAN FOR YOU, WE WILL CHARGE AND COLLECT FROM YOU A
   FEE NOT TO EXCEED _____ % OF THE LOAN AMOUNT.
   				WE DO NOT REPRESENT ALL OF THE LENDERS IN THE MARKET AND THE LENDERS WE DO
   REPRESENT MAY NOT OFFER THE LOWEST INTEREST RATES OR BEST TERMS AVAILABLE TO
   YOU. YOU ARE FREE TO SEEK A LOAN WITHOUT OUR ASSISTANCE, IN WHICH EVENT YOU
   WILL NOT BE REQUIRED TO PAY US A FEE FOR THAT SERVICE.
   				IF YOU ARE A MEMBER OF A CREDIT UNION, YOU SHOULD COMPARE OUR INTEREST
   RATES AND TERMS WITH THE MORTGAGE LOANS AVAILABLE THROUGH YOUR CREDIT UNION.
   				______________________________BORROWER&#8217;S SIGNATURE
   				______________________________BORROWER&#8217;S SIGNATURE
   				The foregoing notice shall be in at least 10-point type, and the
   prospective borrower shall acknowledge receipt of the written notice.

HISTORY: 1993, c. 419, § 6.1-237.6; 2010, c. 794; 2016, c. 501.