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SB 336

Division of Financial Institutions rule relating to residential mortgage lenders, brokers, and loan originators

2026 Regular Session Introduced by Patricia Rucker

West Virginia's SB 336 aims to modify the Division of Financial Institutions rules governing residential mortgage lenders, brokers, and loan originators to strengthen licensing, co

To Judiciary
#legislature--rulemaking
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Bill Summary · SB 336

Summary of SB 336 (Session 2026) – Division of Financial Institutions rule relating to residential mortgage lenders, brokers, and loan originators

Note: The bill text provided appears to be in a corrupted or non-human-readable format. The following summary is based on the bill’s title, the action history, and the available sponsor information. If final text differs, please provide a clean version for a precise analysis.

1. Purpose and intent

  • The bill concerns the Division of Financial Institutions (DFI) in West Virginia and relates to its rules governing residential mortgage lenders, brokers, and loan originators.
  • Likely aim: codify, modify, or interpret DFI rules governing licensing, conduct, and supervision of entities and individuals involved in residential mortgage lending and brokering within the state.

2. Key provisions and changes (as inferred from title and context)

  • Regulatory scope: Applies to residential mortgage lenders, mortgage brokers, and loan originators operating in West Virginia.
  • Rule framework: The bill references “DFI rule relating to” these entities, suggesting it would adopt, amend, or require observance of specific DFI rules/regulations.
  • Licensing and registration: Potentially sets or clarifies licensing requirements for lenders, brokers, and loan originators, including application processes, background checks, and ongoing compliance.
  • Conduct standards: May establish or adjust standards of practice, including disclosures, permissible fees, interest rates, and anti-fraud provisions.
  • Supervision and enforcement: Could specify enforcement mechanisms, penalties for violations, and procedures for DFI examination or audits.
  • Consumer protection: Likely includes safeguards for residential mortgage consumers, such as disclosures, timing of loan approvals, and fair lending considerations.
  • Public rulemaking interplay: The reference to “rule relating to” suggests alignment with or modification of state administrative rules promulgated by DFI.

Notes:
- The exact dollar amounts, rate caps, timelines, and procedural steps are not discernible from the provided text. The final bill text would specify any numerical thresholds, effective dates, and transition periods.

3. Who would be affected

  • Residential mortgage lenders operating in West Virginia.
  • Mortgage brokers who arrange or facilitate residential mortgage loans.
  • Loan originators (individuals who negotiate terms or assist consumers in obtaining a loan) who are regulated under the DFI framework.
  • Consumers engaging in residential mortgage transactions, who would be subject to the updated licensing and conduct standards.
  • DFI and its staff would implement, interpret, and enforce the updated rules.

4. Procedural and timeline aspects

  • Action history indicates:
    • Filed for introduction on January 15, 2026.
    • Referred to Judiciary committee on January 15, 2026.
    • Introduced in the Senate on January 15, 2026.
    • To Judiciary on January 15, 2026.
  • Sponsors: Co-sponsor Patricia Rucker.
  • The bill’s path would typically involve public hearings in the Judiciary committee, potential amendments, and eventual floor votes in the Senate and House (if it moves through normal bicameral process). If enacted, the bill would specify an effective date and any phase-in period for rules or licensing changes.

5. Potential impact and considerations

  • Regulated entities may face updated licensing requirements, compliance obligations, or changes to permitted practices.
  • Consumers could benefit from strengthened disclosures and consistent supervision of mortgage professionals.
  • Enforcement posture and penalties may become more explicit, affecting compliance costs for lenders, brokers, and originators.
  • The interplay with existing state and federal mortgage rules (e.g., federal TILA/RESPA integrations, fair lending laws) will shape how the rule changes fit into the broader regulatory framework.

If you can provide the clean, complete text of SB 336 or confirm specific provisions, I can deliver a precise, detail-rich summary with exact provisions, dates, dollar amounts, and affected programs.

Compiled from official sources — confirm details with the bill’s official record.

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