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Last Updated: October 03, 1997 |
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Mailing Address: 1300 East Main Street P. O. Box 640 Richmond, VA 23218 |
Commissioner Bailey Announces Retirement
Commissioner Bailey has informed the State Corporation Commission that he will retire July 1, 1997.
Commissioner Bailey has directed the SCC’s Bureau of Financial Institutions since June 1, 1977. SCC Commissioner Clinton Miller, who has administrative oversight of the bureau says “Sid is an institution in and of himself among Virginia’s banking community. His reputation and respect go far beyond Virginia’s borders, however. He is someone you can’t replace. Instead, we will be selecting a successor.”
Prior to becoming Virginia’s banking commissioner, Mr. Bailey was employed by the Office of the Comptroller of the Currency from 1958 to 1977. While with the SCC, he served as a member of the board of directors, vice president and chairman of the Conference of State Bank Supervisors, the national professional organization of state bank regulators His federal and state regulatory experience was instrumental in forging cooperative agreements among banking regulators for the examination of institutions that operate across state lines.
Commissioner Miller says, “The SCC will deeply miss Mr. Bailey. Fortunately, he leaves behind a top-notch, professional staff and state-chartered institutions that are financially sound.”
Bureau employees thank Mr. Bailey for his dedication and leadership during the past 20 years and wish him the best in the future.
Regulatory Alert: Unlicensed Company
The Bureau has obtained documentation that the following company has been brokering Virginia residential mortgage loans without a license:
Allstate Funding Corporation: located at 5640 Nicholson Lane, Suite 14, Rockville, MD and 6231 Leesburg Pike, Suite 410 & 416, Vienna, VA.
This company was denied a license on December 20, 1995. It could also be using the name Allstate Financial Servicing Corporation. Doing business without a license is a felony in the Commonwealth of Virginia. Please report any information about the activities of this company to the Bureau.
“CRESPA” In Effect July 1, 1997
The Consumer Real Estate Settlement Protection Act (CRESPA) forbids acting as a “settlement agent” unless licensed as 1) an attorney, 2) a title insurance agent or company, 3) a real estate broker, 4) a “financial institution” (defined by Virginia Code as banks, savings institutions, credit unions, state chartered industrial loan associations or consumer finance companies), or 5) an affiliate or subsidiary of a “financial institution”.
CRESPA becomes effective on July 1, 1997. Registration is being handled by the Virginia State Bar Association. For more information concerning how CRESPA may affect you, please contact the Bar Association at (804) 644-0041 or seek competent legal advise.
The State Corporation Commission is the licensing authority with respect to title insurance agents and title companies ( Bureau of Insurance) and financial institutions (as defined above) and its affiliates or subsidiaries (Bureau of Financial Institutions). The licensing authority for real estate brokers is the Real Estate Board (Department of Professional and Occupational Regulation); for attorneys, it is the Virginia State Bar Association.
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The Consumer Real Estate Settlement Protection Act (CRESPA) was enacted by the 1997 Virginia General Assembly. CRESPA requires persons and business entities providing residential real estate escrow, closing and settlement services for others to register with the Virginia State Bar and fulfill other statutory obligations. The State Corporation Commission is authorized under CRESPA to promulgate regulations applicable to various types of companies performing such services for others, including state chartered and national banks, state chartered and federal savings institutions, state chartered and federal credit unions, industrial loan associations and consumer finance companies, and subsidiaries and affiliates of any such company. Pursuant to this authority, the Commission proposes to adopt certain “Real Estate Settlement Agent Rules” in Case No. BFI970060. A copy of these proposed Rules may be obtained from the Clerk, State Corporation Commission, Document Control Center, P.O. Box 2118, Richmond, Virginia, telephone (804) 371-9033. Written comments on the proposed Rules and written notices of intent to participate at the hearing in this matter must be filed with the Clerk at the above address on or before June 30, 1997, and should contain a reference to Case No. BFI970060. A hearing will be held in the Commission’s Courtroom, 2nd Floor, 1300 East Main Street, Richmond, Virginia, at 10:00 a.m. on July 30, 1997. |
Law Changes Effective July 1, 1997
The Stop Gap containing the laws enacted at the 1997 Session of the Virginia General Assembly relating to banking and finance has recently been mailed to the home offices of every licensee. We hope you will find it helpful until the 1997 Supplemental Law Book is received from the publisher. The Stop Gap is not copyrighted material, therefore it may be reproduced if additional copies are needed. Please make sure it is distributed to all necessary personnel.
If you have any questions, please call Joanne White at (804) 371-9697.
What to Expect When We Show Up at Your Door
Are you worried about what to do? How to act? What we expect? Here are a few tips...
The following is a list of companies who have surrendered their license, had their license revoked, application denied or been fined by the Commission since March 1, 1997. We hope this will be helpful in keeping track of companies with whom you do business. Please remember that these lists are accurate as of June 1, 1997, so call the Bureau if you have a question concerning a recent denial, surrender or regulatory action taken by the Commission. NOTE: Doing business with an unlicensed mortgage company is a violation of Administrative Rulings 1603 and 1605, which can result in regulatory action.
MORTGAGE LICENSES SURRENDERED SINCE MARCH 1, 1997
MB - 858 AARON MORTGAGE SERVICES, INC. -- 3/7/97
MLB - 225 HOMESTEAD MORTGAGE INC. D/B/A HOMESTEAD MORTGAGE INC. OF VIRGINIA -- 3/11/97
MB - 658 WILLIAM H. TOU T/A CALMAX MORTGAGE COMPANY -- 3/17/97
MB - 555 DAVID SANGYONG PARK AND JESSICA SONGSUK PARK T/A BANKTRUST MORTGAGE COMPANY -- 3/18/97
MB - 294 AMERICAN FINANCIAL ENTERPRISES, INC. -- 3/19/97
MB - 488 MORTGAGE ACCEPTANCE CORPORATION -- 3/20/97
ML-142 EXPRESS FUNDING, INC. -- 3/24/97
MB - 164 HOMESTAR MORTGAGE, INC. --4/3/97
ML - 185 J I KISLAK MORTGAGE CORPORATION -- 4/7/97
MB - 238 PHILIP BARRY HUDGINS -- 4/11/97
ML - 146 IMPERIAL CREDIT INDUSTRIES, INC. -- 4/16/97
MLB - 371 AMERICAN MORTGAGE EXPRESS, INC. -- 5/5/97
MB - 217 RES - COM FINANCIAL SERVICES OF VIRGINIA, INC. -- 5/14/97
MLB - 211 TOWN & COUNTRY MORTGAGE AND INVESTMENT CORPORATION -- 5/16/97
MLB-266 MASTERS MORTGAGE, INC. SURRENDERED LENDER AUTHORITY ONLY -- 5/21/97 STILL LICENSED AS A BROKER (MB - 1110)
ML - 16 KFC MORTGAGE LOANS, INC.-- 5/22/97
MB - 517 TRI-STATE MORTGAGE, INC. -- 5/23/97
MB - 883 TIDEWATER MORTGAGEE SERVICE, INC. -- 5/27/97
MB - 914 MILLIE A. MARTELINO T/A GLOBAL MORTGAGE RESOURCES -- 5/27/97
MB - 783 ROYAJOON, INC. T/A ROYAL MORTGAGE COMPANY -- 5/30/97
MORTGAGE APPLICATIONS DENIED SINCE MARCH 1, 1997
MB - 1083 ALMA PRECIADO D/B/A METROPOLITAN FINANCIAL SERVICES -- 4/24/97
MB - 1053 MAJOR FINANCIAL, INC. -- 4/25/97
MORTGAGE LICENSE REVOCATIONS SINCE MARCH 1, 1997
NONE
PENALTIES PAID BY MORTGAGE LICENSEES SINCE MARCH 1, 1997
NONE
We are constantly receiving calls regarding when a location is considered a branch which requires a license. Some of these questions are addressed below. The answers are based on Sections 6.1-416 and 6.1-417 of the Virginia Code.
Question: If a loan originator has a desk and a phone at a real estate office and regularly conducts business from this location, is a branch license required? Answer: Yes.
Question: If files are sent to an off-site storage facility, is the storage unit required to be licensed? Answer: Yes.
Question: If an originator works from their home, keeps no files there, but advertises using their home address and phone number, is a branch license required? Answer: Yes.
Question: If an originator works out of their home, keeps no files there and does not advertise this location, is a branch license required? Answer: No.
Question: If, on occasion, a loan officer meets a borrower at their realtor’s office to take an application, is a branch license required? Answer: No.
Charges Prohibited on Subordinate Loans
In addition to the interest rate and points charged, only the fees listed in Virginia Code §6.1-330.72 may be charged in connection with a subordinate mortgage loan: actual cost of credit report, title examination and insurance, mortgage guaranty insurance, recording fees, survey fees, attorney fees and appraisal fees. The law states, “No other charges of any kind shall be imposed on or be payable by the borrower whether to the lender or any other party in connection with such loan...” A recent opinion from Bureau’s Counsel has informed us that a “closing fee” or “settlement fee” is not an allowable charge in connection with a subordinate mortgage loan. Please review the above referenced law and inform all affected personnel of its contents.
Jump$tart Coalition for Personal Finance Literacy
The Jump$tart Coalition, based in Washington, D. C., consists of a wide range of organizations, including federal agencies, universities and non - profit associations which formed a partnership to launch a national effort geared toward improving personal finance literacy among young adults. Deputy Commissioner Face is representing state regulators on the coalition.
The coalition wants to increase public awareness that, like reading or math, personal finance management is a fundamental life skill that needs to be taught. The results of a 1997 survey of 12th graders sponsored by the coalition provides a baseline measurement by which to gauge progress toward the coalition’s goal of financial competency among all 12th graders by the year 2007.
In addition, the coalition will use the survey to fine-tune a set of educator guidelines it has developed to assist teachers. The guidelines -- which received input from a panel of elementary, secondary and high school teachers, as well as numerous other educators throughout the country -- provide a recommended scope of personal finance concepts and topics to be taught in the nation’s schools.
If you are interested in obtaining more information, Jump$tart Coalition may be reached at 919 18th Street, NW, 3rd Floor, Washington, D. C. 20006, by phone at (202) 466 - 8610 or on the web at “www.jumpstartcoalition.org.”.
Here are some of the results of the Jump$tart survey:
Important Commission Telephone Numbers:
Corporate Structure and Research Section (licensing) (804) 371-9690
Consumer Complaints (804) 371-9705
Bureau of Financial Institutions FAX NUMBER (804) 371-9416
Bank and Thrift Supervision Section (804) 371-9704
SCC Office of the Clerk (corporate information) (804) 371-9733
Bureau of Insurance (804) 371-9741
The next newsletter will be published in September 1997.
Bureau of Financial Institutions
State Corporation Commission
P.O. Box 640
Richmond, Virginia 23218-0640
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Last Updated: October 03, 1997 |