Virginia Removes Bans on Realtors Acting as Mortgage Brokers, Requires New Disclosure | PC Weiner Brodsky Kider

Virginia recently removed provisions prohibiting a real estate broker or salesperson from acting as a mortgage broker in the same transaction in which the broker or salesperson received or will receive compensation. In addition, the new law provides that if a mortgage broker negotiates, places or finds a mortgage loan and acts as a real estate broker or seller in connection with the sale of the immovable securing such a loan, the mortgage broker must ostensibly provide to the Borrower at the time the Mortgage Broker’s services are first offered, the following written disclosure:

YOU ARE HEREBY ADVISED THAT YOU ARE NOT REQUIRED TO ENTER INTO AN AGREEMENT FOR REAL ESTATE BROKER OR SELLER SERVICES WITH ANY REAL ESTATE BROKER OR REAL ESTATE SELLER REFERRED TO YOU BY US.

YOU ARE HEREBY ADVISED THAT [NAME OF MORTGAGE BROKER] WILL RECEIVE COMPENSATION FOR THE PROVISION OF MORTGAGE BROKER SERVICES AND REAL ESTATE BROKER OR SELLER SERVICES IN CONNECTION WITH THE SALE OF THE REAL ESTATE SECURATING THIS MORTGAGE LOAN.

YOU ARE HEREBY ADVISED THAT WE DO NOT REPRESENT ALL LENDERS IN THE MARKET AND THAT THE LENDERS WE REPRESENT MAY NOT OFFER THE LOWEST INTEREST RATES OR THE BEST TERMS AVAILABLE TO YOU.

These new provisions come into force on July 1, 2022.

Kristan F. Talley