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Introduced Version Senate Bill 97 History

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SB97 intr
Senate Bill No. 97

(By Senator White)


[Introduced January 13, 2010; referred to the Committee on Banking and Insurance; and then to the Committee on the Judiciary.]


A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §46A-2-140, relating to the prevention of predatory lending practices.

Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §46A-2-140, to read as follows:
§46A-2-140. Prohibited conduct; restrictions on interests in land as security.

No interest in land shall be taken as security arising out of credit sale, consumer loan or rent-to-own agreement:
(1) In which the loan, agreement or sale is not underwritten to determine whether the borrower can afford to repay consistent with the terms of the loan or sale;
(2) Which does not include the obligation to engage in comprehensive loss mitigation;
(3) In which the consumer refinances an existing home-secured loan without achieving a net tangible benefit;
(4) In which income verification is not a part of the consumer loan underwriting;
(5) Which, notwithstanding section one hundred ten, article three of this chapter, has a prepayment penalty in connection therewith;
(6) In which a trust deed allows for the substitution of the trustee without the consent of both parties, absent the death, disability or other inability to serve of the original agreed upon trustee; or
(7) In which the consumer is charged a rate of finance charge higher than that for which the consumer qualifies.
As used in this section only, "consumer loan" does not include a "consumer loan" made onsite by a depository institution.
"Rent-to-own agreement" is to be given the same definition as the term is defined in subdivision (17), section five, article one, chapter forty-six-b of this code.
NOTE: The purpose of this bill is to address the causes of the current foreclosure crisis and generally protect consumers from losing their homes as a result of the subprime and other lenders' overreaching practices and contract provisions, the significance of which consumers cannot be expected to understand.

This section is new; therefore, strike-throughs and underscoring have been omitted.
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