West Virginia has amended its Residential Mortgage Lender, Broker and Servicer Act regulations. Among other revisions, the Commissioner of Banking revised the regulations to provide additional record keeping requirements. Effective, May 1, 2012, in addition to the existing record keeping requirements, the originating lender must also keep electronic and written correspondence between the lender and the borrower, to include e-mails. The originating lender also must keep “an itemization of all fees and charges imposed on each loan and received by the lender and by any third-parties. The itemization must include the nature and amount of each fee or change and the identity of the recipient.” Similarly, licensed brokers also must keep an itemization of all fees and charges imposed on each loan and retained by the broker. Brokers must also keep the final TILA disclosure and the note.
Additionally, the Commissioner promulgated a new regulation that requires the broker and lender to “document tangible net benefit to the borrower before arranging or making any residential mortgage loan that closed within 24 months of the proposed refinancing. This duty exists even if the broker or lender did not arrange or make the existing loan that will be refinanced.”