§ 6.1-2.19 amended. Consumer Real Estate Settlement Protection Act; settlement services. Provides that a licensee or his employees or independent contractors, who are not named as settlement agents in a real estate purchasing contract or on the settlement statement may perform escrow, closing, or settlement services to facilitate the settlement of the transaction so long as the licensee is otherwise authorized by law or regulation to perform such services. HB 1265; CH. 162.

§ 6.1-2.19 amended. Consumer Real Estate Settlement Protection Act; settlement services. Provides that a licensed realtor, his employees and independent contractors not named as settlement agents in a real estate purchasing contract or on the settlement statement may nevertheless perform escrow, closing, or settlement services to facilitate the settlement of the transaction without complying with the provisions of CRESPA, if the licensed realtor is not otherwise prohibited by law or regulation from performing such services. SB 281; CH. 736.

§§ 6.1-2.19, 6.1-2.20, 6.1-2.21, 6.1-2.23 and 6.1-330.72 amended. Settlement agents. Amends provisions concerning settlement agents in the Consumer Real Estate Settlement Protection Act (CRESPA), and adds provisions concerning settlement agent fees in a statute governing subordinate mortgage loans. Principal changes in CRESPA include those which: (i) authorize licensed realtors, their employees or independent contractors not named as the settlement agents in real estate purchase contracts to nevertheless perform escrow, closing or settlement services (if such licensees are not otherwise prohibited by law or regulation from performing these functions) without complying with CRESPA; (ii) redefine "settlement agent" to mean the individual furnishing settlement services who is listed as the settlement agent in the real estate purchase contract; (iii) require settlement agents other than attorneys or title insurance companies to have analyses of their escrow accounts conducted at least once in each consecutive 12-month period; (iv) delete reference to the requirement that escrow fund disbursements be accomplished via written instructions (signed by both sellers and purchasers or borrowers) conforming to the federal Real Estate Settlement Procedures Act; as amended, written instructions signed by both sellers and purchasers or borrowers will be deemed sufficient; and (v) require all CRESPA-governed real estate settlement statements to be in writing, and identify, by name and business address, the settlement agent. An additional provision in the bill permits lenders to charge borrowers for the cost of a settlement agent's services in connection with making a loan secured by a subordinate mortgage or deed of trust. SB 554; CH. 69.

§ 6.1-2.20 amended. Consumer Real Estate Settlement Protection Act; party to the real estate transaction. Amends the definition of "party to the real estate transaction" to include, with respect to real estate transactions to which a corporate entity is a party, any entity which is a subsidiary of or under common ownership with that corporate entity. SB 684; CH. 598.

§ 6.1-13 amended. Banking; certificate of authority. Removes the requirement of establishing a separate capital account labeled "reserve for operation" prior to a bank receiving a certificate of authority from the State Corporation Commission. Financial reports do not normally provide such reserves, and including these reserves is in violation of Generally Accepted Accounting Procedures (GAAP). SB 87; CH. 18.

§ 6.1-58.2 amended. Controlled subsidiary; transaction of insurance business. Permits controlled subsidiary corporations, subject to conditions imposed by the State Corporation Commission, to underwrite reinsurance of mortgage guaranty insurance on real estate loans made or purchased by the controlled subsidiary's affiliates or by banks owning such controlled subsidiary. "Controlled subsidiary corporations" are defined as domestic or foreign corporations whose majority voting stock is owned directly or indirectly by (i) a bank organized under the laws of the United States, (ii) a bank organized under the laws of Virginia or any other state, or (iii) a bank holding company owning a bank in Virginia or any other state. SB 447; CH. 48.

§§ 6.1-94, 6.1-194.85 and 6.1-194.149 amended. Banking; fees for supervision, regulation, and investigations. Permits the State Corporation Commission to reduce by order or regulation the statutory fees charged to banks, savings institutions and state savings banks for investigating various applications, including applications (i) for a certificate of authority, (ii) to establish, acquire or relocate one or more branches, (iii) for approval of a merger or consolidation, (iv) for authority to exercise trust powers, and (v) for certain conversions. The Commission may reduce such rates if the Commission concludes that there is a reasonable basis for doing so and that the reduction of the fee will not be detrimental to the effectiveness of the Bureau of Financial Institutions. SB 88; CH. 19.

§ 6.1-225.6 amended. Credit unions; electronic filing of annual reports. Authorizes credit unions to file electronically their annual reports to the Virginia State Corporation Commission. A credit union that submits a report electronically must maintain a copy of the report with certified signatures affixed. SB 112; CH. 34.

§ 6.1-225.61:1 added. Credit unions; out-of-state credit unions. Allows the State Corporation Commission to examine out-of-state credit unions conducting business in Virginia and to enter into cooperative agreements with other state credit union supervisors and federal agencies having concurrent jurisdiction over out-of-state credit unions regarding reports of examination and reports of investigation. This bill also permits the State Corporation Commission to assess out-of-state credit unions for supervisory and examination fees and authorizes the State Corporation Commission to enter into agreements to share such fees with other state and federal regulators. HB 599; CH. 23.

§ 6.1-249 amended. Consumer Finance Act; limitation to natural persons. Limits the applicability of the Consumer Finance Act to loans made to natural persons for personal, family, household or other nonbusiness purposes. HB 443; CH. 9.

§§ 6.1-298 and 6.1-300 amended. Consumer finance companies; examination of accounts, books and records. Reduces the frequency of the State Corporation Commission's examinations of finance companies from twice to once in every three-year period. The bill also permits records of consumer finance licensees to be maintained electronically. Finally, the bill permits notes pledged as security for commercial funding of a finance company to be deposited wherever the commercial lender may require. SB 313; CH. 44.

§§ 6.1-330.72 and 6.1-330.85 amended. Banking; subordinate mortgages. Allows a lender making a subordinate mortgage loan to collect (i) a fee for having the secured property examined to determine if it is in a flood plain and (ii) a prepayment fee not to exceed two percent of the principal amount of the loan for prepayment of the loan in full. The bill prohibits a lender from collecting a prepayment penalty in the event of partial prepayment or where there is a payment of the outstanding balance on an open-end loan without demand to release the evidence of indebtedness. HB 700; CH. 89.

§ 6.1-370 amended; § 6.1-378.2 added. Money order sales and money transmission services; acquisition of control. Requires the State Corporation Commission to receive and review an application and other necessary information from any person seeking to acquire directly or indirectly 25 percent or more of the voting shares or ownership of a business engaged in the sale of money orders or money transmission. The State Corporation Commission will permit the acquisition if, following investigation of the application and other information, it finds that the applicant and any directors, senior officers, and principals have the financial responsibility, character, reputation, experience, and general fitness to warrant belief that the business will be operated efficiently and fairly, in the public interest, and in accordance with the law. Persons acquiring an interest in such a business directly or indirectly by merger or consolidation (i) by or with a person already licensed, (ii) by or with a person affiliated through common ownership, or (iii) by bequest, descent, survivorship or operation of law do not have to file an application, but must send written notice to the State Corporation Commission of such acquisition. HB 444; CH. 10.

§§ 6.1-398 and 6.1-399 amended; §§ 6.1-400, 6.1-402, 6.1-405 and 6.1-407 repealed. Banking; acquisitions of Virginia banks by out-of-state bank holding companies. Provides that acquisitions of Virginia banks by out-of-state bank holding companies are subject to the same application and review process as acquisitions of Virginia banks by other entities. This bill eliminates differences between interstate acquisitions by bank holding companies and by other entities. Any proposed acquisitions of Virginia banks and bank holding companies will continue to be subject to an application and review process. SB 243; CH. 231.

§ 6.1-416.1 amended. Mortgage lenders and brokers; acquisition of control. Provides a technical and clarifying amendment concerning the control share acquisition threshold of 25 percent or more in the Mortgage Lender and Broker Act. SB 95; CH. 33.