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Bill

HB 1307

Mortgage lenders and brokers; criminal history records check.

2026 Regular Session Introduced by Dan Helmer

Virginia bill requiring mortgage lenders and brokers to conduct criminal background checks on employees to protect consumers from fraud and financial crimes.

Approved by Governor-Chapter 773 (effective 7/1/2026)
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Bill Summary · HB 1307

Legislative bill overview

HB 1307 requires mortgage lenders and brokers in Virginia to conduct criminal history records checks on their employees and loan officers. The bill establishes standards for what criminal convictions should disqualify individuals from working in these roles, similar to background check requirements in other regulated financial services professions.

Why is this important

Mortgage lending involves access to sensitive personal and financial information from borrowers. Criminal history screening could reduce fraud, identity theft, and financial crimes in the mortgage industry while potentially protecting consumers. This aligns Virginia's mortgage industry standards with existing requirements for other financial services professionals like securities brokers and real estate agents.

Potential points of contention

  • Cost and compliance burden: Lenders and brokers would bear the expense of conducting background checks on current and future employees, which smaller mortgage companies may argue disproportionately affects them
  • Definition of disqualifying offenses: Determining which crimes should permanently or temporarily bar someone from the industry could spark debate between consumer protection advocates and workforce reintegration advocates
  • Implementation timeline and retroactive application: Questions about whether checks apply only to new hires or existing employees, and how much time lenders have to comply without significant operational disruption

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

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