West VirginiaSB 4272026 Regular SessionSenateWALLET

Relating to loan form

Sponsored By: Robbie Morris (Republican)

Signed by Governor

§31-17-8

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

Protect home value and collateral

Lenders cannot make a loan that, with your other mortgages, exceeds your home’s fair market value; they may rely on a proper independent appraisal. No one may pressure or pay an appraiser to change a value. Loan papers cannot allow acceleration only because your home’s market value falls. Lenders cannot take a security interest in personal property unless it is attached to the home or land.

Lower caps on mortgage rates and fees

For second mortgages, the finance charge is capped at 18% a year. Total fees, points, and compensation are capped at 6% of the amount financed (5% if no yield spread premium), and no yield spread premium is allowed when the APR is over 18%. You can prepay anytime and must get an actuarial rebate of unearned finance charges; points, investigation, and origination fees are excluded. Within 24 months, a refinance or new loan on the same property cannot re‑charge origination, investigation fees, or points unless the lender documents a reasonable, tangible net benefit. Late fees apply only after 10 days and only once per payment, and lenders cannot hide, duplicate, or misstate fees at closing.

Fair terms in mortgage papers and closings

Mortgage papers cannot give a lender a power to confess judgment or make you waive your rights. They cannot assign your wages and cannot force arbitration unless it meets federal law. Documents cannot contain blanks to be filled in after closing, and you must get a copy of every paper you sign at closing. Payment schedules cannot require more than one payment per period, and payments must be equal, except the last can be smaller or up to $5 larger; revolving lines and certain federal‑program loans are exempt.

Stronger protections against predatory lending

Lenders and brokers cannot make loans designed to fail so they can take the home. Payments must reduce the original principal every month, except for reverse mortgages, home‑equity lines, bridge loans, and certain commercial multi‑property loans. A lender cannot stack multiple subordinate mortgages to raise charges, and cannot tell you to miss payments before a refinance. Lenders and brokers cannot make revolving, credit‑card‑style retail loans secured by your home. Loans must follow the terms allowed by this law, and knowing violations of state or federal mortgage laws are illegal.

Rules for upfront and third party fees

Lenders cannot charge general application fees; only third‑party costs like appraisal, inspection, title work, and credit reports are allowed. In a purchase‑money deal, after loan approval, you may reimburse only actual expenses if you willfully fail to close or made a material false or fraudulent statement. If no loan is made, the lender cannot add charges; appraisal fees paid to an unrelated appraiser are refunded only if federal law requires it. A licensee may not take money before finishing promised services unless it registers and meets credit‑service rules and bonding. Lenders may require hazard insurance, but the cost cannot exceed the state‑approved standard rate, and you must get proof of all insurance within 30 days of application.

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Sponsors & Cosponsors

Sponsor

Robbie Morris
Republican • Senate

Cosponsors

Anitra Hamilton
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 145 • No: 0

Senate vote • 3/14/2026

Senate concurred in House amendments and passed bill (Roll No. 623)

Yes: 34 • No: 0

House vote • 3/13/2026

Passed House (Roll No. 527)

Yes: 77 • No: 0

Senate vote • 2/2/2026

Passed Senate (Roll No. 33)

Yes: 34 • No: 0

Actions Timeline

Approved by Governor 3/25/2026
3/25/2026Senate
To Governor 3/18/2026
3/18/2026Senate
House Message received
3/14/2026Senate
Senate concurred in House amendments and passed bill (Roll No. 623)
3/14/2026Senate
Communicated to House
3/14/2026Senate
Completed legislative action
3/14/2026Senate
To Governor 3/18/2026 - Senate Journal
3/14/2026Senate
Approved by Governor 3/25/2026 - Senate Journal
3/14/2026Senate
Approved by Governor 3/25/2026 - House Journal
3/14/2026House
On 3rd reading, Special Calendar
3/13/2026House
Read 3rd time
3/13/2026House
Passed House (Roll No. 527)
3/13/2026House
Communicated to Senate
3/13/2026House
On 2nd reading, Special Calendar
3/12/2026House
Read 2nd time
3/12/2026House
Amendment reported by the Clerk
3/12/2026House
Committee amendment adopted (Voice vote)
3/12/2026House
On 1st reading, Special Calendar
3/11/2026House
Read 1st time
3/11/2026House
With amendment, do pass
3/10/2026House
House received Senate message
2/3/2026House
Introduced in House
2/3/2026House
To Finance
2/3/2026House
To House Finance
2/3/2026House
On 3rd reading
2/2/2026Senate

Bill Text

Enrolled
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Introduced Version
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