Virginia recently passed VA House Bill 1153 (“HB 1153”), which amends the dual capacity disclosure requirements for mortgage brokers licensed under the Mortgage Lender and Broker Act.
Amendments under HB 1153 no longer require a disclosure if an affiliate of the mortgage broker acts as a real estate broker in a real estate transaction. Va. Code Ann. § 6.2-1616(c) has been updated with new disclosure language that must be provided by a mortgage broker who acts as a real estate broker or real estate salesperson when mortgage broker services are first offered to the borrower.
DocMagic currently provides the Virginia Notice of Mortgage Broker Fee (Form ID: VANMBF.MSC) for broker originated purchase loans to satisfy the disclosure requirement of Va. Code Ann. § 6.2-1616(B)(5). This form will be retired as disclosure requirement has been repealed. New language has been added to Va. Code Ann § 6.2-1616(C) for a dual capacity disclosure. If a mortgage broker acts as a real estate broker or real estate salesperson in connection with a loan sale, the mortgage broker is required to provide the a disclosure with required language. New form, Virginia Disclosure of Dual Capacity (VADCD.MSC) will be available on the Forms List to select as applicable. The effective date is July 1, 2022.
If you have any questions, please contact DocMagic’s Compliance Department.