                                 CODE OF VIRGINIA

OTHER PROHIBITIONS APPLICABLE TO MORTGAGE BROKERS (§ 6.2-1616)

A. As used in this section:
			&#8220;Real estate broker&#8221; has the same meaning provided in &#xA7;
54.1-2100.
			&#8220;Real estate salesperson&#8221; has the same meaning provided in &#xA7;
54.1-2100.

B. No mortgage broker required to be licensed under this chapter shall:

   1. Except for documented costs of credit reports 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 he is a principal,
   partner, trustee, director, officer, or employee;

   3. Receive compensation from a borrower in connection with any mortgage loan
   transaction in which he 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. Fail to use reasonable skill, care, and diligence in exercising the
   broker&#8217;s duty, which duty is hereby created, to make reasonable efforts
   to secure a mortgage loan that is in the best interests of the applicant,
   considering the applicant&#8217;s circumstances and loan characteristics,
   including but not limited to the product type, rates, charges, and repayment
   terms of the loan.

C. If a mortgage broker negotiates, places, or finds a mortgage loan and acts as
a real estate broker or real estate salesperson in connection with the sale of
the real estate that secures such loan, the mortgage broker shall conspicuously
provide to the borrower the following written disclosure at the time the
mortgage broker services are first offered to the borrower:
			YOU ARE HEREBY NOTIFIED THAT YOU ARE NOT REQUIRED TO ENTER INTO ANY
ARRANGEMENT FOR REAL ESTATE BROKER OR REAL ESTATE SALESPERSON SERVICES WITH A
REAL ESTATE BROKER OR REAL ESTATE SALESPERSON TO WHOM WE HAVE REFERRED YOU.
			YOU ARE HEREBY NOTIFIED THAT [NAME OF MORTGAGE BROKER] WILL BE RECEIVING
COMPENSATION FOR PROVIDING BOTH MORTGAGE BROKER SERVICES AND REAL ESTATE BROKER
OR REAL ESTATE SALESPERSON SERVICES IN CONNECTION WITH THE SALE OF THE REAL
ESTATE THAT SECURES THIS MORTGAGE LOAN.
			YOU ARE HEREBY NOTIFIED THAT 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.

D. The requirements of this section are in addition to the requirements of the
federal Real Estate Settlement Procedures Act of 1974 (12 U.S.C. &#xA7; 2601 et
seq.) and regulations adopted thereunder.

HISTORY: 1987, c. 596, § 6.1-422; 1989, c. 667; 1993, c. 183; 1997, c. 228;
2001, cc. 502, 511; 2009, cc. 189, 261; 2010, c. 794; 2022, cc. 400, 401; 2024,
cc. 459, 621.