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Financial Services Law Insights and Observations

West Virginia Enacts SAFE Mortgage Act

State Issues

On May 8, West Virginia Governor Joe Manchin approved a bill to create the West Virginia SAFE Mortgage Licensing Act (S.B. 532). The Act (i) requires licensing and registration of mortgage loan originators, (ii) authorizes the Division of Banking to participate in the Nationwide Mortgage Licensing System and Registry, (iii) requires prelicensure education of mortgage loan originators, (iv) implements a prelicensure testing requirement for mortgage loan originators; (v) explains standards for mortgage loan originator license renewal, (vi) clarifies annual continuing education requirements for mortgage loan originators, and (vii) outlines prohibited acts and practices for mortgage loan originators. The effective date of the West Virginia SAFE Mortgage Licensing Act for all individuals licensed as mortgage loan originators before July 1, 2009, is January 1, 2011. For all other individuals, the effective date is January 31, 2010. In addition to creating the West Virginia SAFE Mortgage Licensing Act, S.B. 532 makes amendments to the West Virginia Residential Mortgage Lender, Broker and Servicer Act, and the West Virginia Consumer Credit and Protection Act, relating to the West Virginia Division of Banking’s participation in the Nationwide Mortgage Licensing System and Registry.