SENATE
HOUSE
JOINT
BILL STATUS
STATE LAW
REPORTS
EDUCATIONAL
CONTACT
home
home
Introduced Version House Bill 3097 History

   |  Email
Key: Green = existing Code. Red = new code to be enacted
H. B. 3097


(By Delegates Guthrie, Moore and Webster)

[Introduced March 12, 2009; referred to the

Committee on Banking and Insurance then 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:

ARTICLE 2. CONSUMER CREDIT PROTECTION.

§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.
Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.
This Web site is maintained by the West Virginia Legislature's Office of Reference & Information.  |  Terms of Use  |   Email WebmasterWebmaster   |   © 2024 West Virginia Legislature **


X

Print On Demand

Name:
Email:
Phone:

Print