§ 6.1-330.72. Loans secured by subordinate mortgage; charges allowed; requirements relating to insuranc...
A. Any lender making a loan secured by a subordinate mortgage or deed of trust may require the borrower to pay, in addition to the loan fee and interest permitted by § 6.1-330.71, the actual cost of a credit report, title examination, title insurance, mortgage guaranty insurance, recording fees, surveys, attorney's fees, appraisal fees, and a fee to determine if the property securing the loan is located in a special flood hazard area. No other charges of any kind shall be imposed on or be payable by the borrower either to the lender or any other party in connection with such loan other than a fee charged by the settlement agent as defined in § 6.1-2.20; provided, late charges in the amount specified in § 6.1-330.80 and a prepayment penalty permitted under § 6.1-330.85 may be contracted for and, upon default, the borrower may be subject to court costs, attorney's fees, trustee's commission and other expenses of collection as otherwise permitted by law. Broker's or finder's fees may be paid by the lender from the loan fee or interest permitted under § 6.1-330.71. A broker's fee, finder's fee or commission may be paid by the borrower not to exceed five percent of the principal amount of the loan if the total of the loan fee permitted under § 6.1-330.71 and broker's fees, finder's fees or commissions does not exceed five percent of the principal amount of the loan.
B. Evidence of flood insurance if the security property is located in a special flood hazard area and fire and extended coverage insurance may be required by the lender of the borrower and the premium shall not be considered as a charge. Decreasing term life insurance, in an amount not exceeding the amount of the loan and for a period not exceeding the term of the loan, may also be required by the lender of the borrower and the premium shall not be considered as a charge. At the option of the borrower, accident and health insurance and involuntary unemployment insurance may be provided by the lender, and the premium therefor shall not be considered a charge. Proof of all insurance issued in connection with loans subject to this chapter shall be furnished to the borrower within ten days from the date the loan is closed.
C. No charge may be imposed or collected, except as permitted by § 6.1-330.71, if the loan is not made.
D. This section shall not apply to any loan made by any lender enumerated in § 6.1-330.73.
(1987, c. 622; 1993, c. 774; 1995, c. 75; 1996, c. 243; 1998, cc. 69, 89.)
Sections: Previous 6.1-330.66 6.1-330.66:1 6.1-330.67 6.1-330.68 6.1-330.69 6.1-330.70 6.1-330.71 6.1-330.72 6.1-330.73 6.1-330.74 6.1-330.75 6.1-330.76 6.1-330.77 6.1-330.77:1 6.1-330.78 NextLast modified: April 16, 2009