                                 CODE OF VIRGINIA

PROHIBITIONS APPLICABLE TO MORTGAGE LENDERS AND MORTGAGE BROKERS (§ 6.2-1614)

No mortgage lender or mortgage broker required to be licensed under this chapter
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 securing a mortgage loan, including any fixtures and appliances thereon
and any mobile or manufactured home placed on such real estate even if such
mobile or manufactured home is not permanently affixed thereto;

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 a borrower which contains an
acceleration clause permitting the unpaid balance of a mortgage loan to be
declared due for any reason other than failing to make timely payments of
interest and principal, submitting false information in connection with an
application for the mortgage loan, breaching any representation or covenant made
in the agreement or instrument, or failing to perform any other obligations
undertaken in the agreement or instrument;

6. Recommend or encourage a person to default on an existing loan or other debt,
if such default adversely affects such person&#8217;s creditworthiness, in
connection with the solicitation or making of a mortgage loan that refinances
all or any portion of such existing loan or debt;

7. Knowingly or intentionally engage in the act or practice of refinancing a
mortgage loan within 12 months following the date the refinanced mortgage loan
was originated, unless the refinancing is in the borrower&#8217;s best interest,
which act or practice is commonly referred to as &#8220;flipping.&#8221; This
prohibition shall apply regardless of whether the interest rate, points, fees,
and charges paid or payable by the borrower in connection with the refinancing
exceed any limitation established pursuant to Chapter 3 (&#xA7; 6.2-300 et seq.)
or Article 2 (&#xA7; 6.2-406 et seq.) of Chapter 4. Factors to be considered in
determining if the refinancing is in the borrower&#8217;s best interest include
but are not limited to whether:
			a. The borrower&#8217;s new monthly payment is lower than the total of all
monthly obligations being financed, taking into account the costs and fees;
			b. There is a change in the amortization period of the new loan;
			c. The borrower receives cash in excess of the costs and fees of refinancing;
			d. The rate of interest on the borrower&#8217;s note is reduced;
			e. There is a change from an adjustable to a fixed rate loan, taking into
account costs and fees; and
			f. The refinancing is necessary to respond to a bona fide personal need or an
order of an appropriate court; or

8. Use or cause to be published any advertisement that:
			a. Contains any false, misleading, or deceptive statement or representation;
or
			b. Identifies the mortgage lender or mortgage broker by any name other than
the name set forth on the license issued by the Commission.

HISTORY: 1987, c. 596, §§ 6.1-422, 6.1-424; 1989, c. 667; 1993, c. 183; 1995,
c. 62; 1997, c. 228; 2001, cc. 502, 510, 511, § 6.1-422.1; 2003, c. 386; 2009,
cc. 189, 261; 2010, c. 794.