2006 Code of Virginia § 6.1-330.70 - Fees and charges in connection with loans by real estate lenders; certain borrowers not to be requi...

6.1-330.70. Fees and charges in connection with loans by real estatelenders; certain borrowers not to be required to employ particular attorney,surveyor or insurer.

A. A lender engaged in making real estate mortgage or deed of trust loans,other than loans subject to the provisions of 6.1-330.71 and 6.1-330.72,may charge or collect in advance from the borrower a loan fee as agreedbetween the parties. Such a lender also may require the borrower to pay thereasonable and necessary charges in connection with making the loan,including the cost of title examination, title insurance, recording andfiling fees, taxes, insurance, including mortgage guaranty insurance,appraisals, credit reports, surveys, drawing of papers and closing the loan.

B. In the case of loans secured by deeds of trust or mortgages on one to fourfamily residences, the lender may not require the borrower to use theservices of a particular attorney, surveyor or insurer. However, the lendershall have the right to approve any attorney, surveyor, or insurer selectedby the borrower, provided such approval is not unreasonably withheld. Anylender in compliance with regulations promulgated by the Federal Home LoanBank Board relating to loan services and fees as in effect on July 1, 1977,shall be deemed to be in compliance with this subsection.

C. The fees and charges permitted by this section and other sections of thischapter are in addition to those permitted by 6.1-330.69 and may be addedto the principal of the loan, and shall not be considered in determiningwhether a loan contract is usurious.

(1987, c. 622; 1990, c. 3.)