Frequently Asked Questions
Q1. Who do I complain to about the way a mortgage broker handled
my loan application?
A1. The Bureau of Financial Institutions may be able to help. Many
mortgage lenders and brokers must be licensed by the SCC. A written statement of
your complaint and copies of any applicable supporting documentation for the complaint
will be necessary in order for the bureau to act.
Q2. Does the SCC regulate the amount of interest banks charge
A2. No, generally the rate of interest is not limited by law and is
"set" by banks depending on market rates. However, the rate of interest charged
by consumer finance (small loan) companies on loans of $2,500 or less is limited
by state law, as is the number of "points" on certain types of mortgage loans.
Q3. Does the state have a fund that insures my savings in my Virginia
A3. No. In Virginia, insurance of your deposits is provided by federal
agencies. Whether state or federally chartered, a bank or savings institution in
Virginia must be a member of the Federal Deposit Insurance Corporation. Your account
is insured up to $250,000.
Q4. I am a mortgage lender/broker not licensed in the Commonwealth
of Virginia, but I have an opportunity to do one Virginia residential mortgage loan.
Do I need a license in Virginia to make or broker one loan?
A4. The answer depends upon whether you will act as a lender in the
transaction or the broker. Pursuant to Section 6.2-1602 of the Code of Virginia,
mortgage lenders making three (3) or fewer mortgage loans in any period of 12 consecutive
months are exempt from the licensing requirements and other provisions of the mortgage
lender and broker act. This, however, does not hold true for mortgage brokers. If
you act as a mortgage broker, you would need a license to broker even one loan.
Please note that it is the position of the Bureau of Financial Institutions that
the payee named in a mortgage loan note is presumed to be the mortgage lender in
that transaction (Reference: Administrative Letter 1601). Please also refer to the
definitions under Section 6.2-1600 of the Code of Virginia.