Statutes, codes, and regulations
West Virginia Administrative Code
Agency 106 - BankingTitle 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS
Series 106-19 - Rules For Reverse Mortgage Loans
Section 106-19-10 - Permitted Fees, Costs and Payments

W. Va. Code R. § 106-19-10

Download
PDF
Current through Register Vol. XLI, No. 36, September 6, 2024
Section 106-19-10 - Permitted Fees, Costs and Payments
10.1. Permitted Initial Fees and Charges. -- Other than principal, interest, shared appreciation and equity participation, lenders may only charge, in connection with the origination of reverse mortgage loans, the following fees, costs and payments, as applicable, at closing. The lender before assessing the charge shall disclose the charges to the mortgagor(s) pursuant to section 11 of this rule:
10.1.a. an application fee, which may be collected prior to closing, as limited by the provisions of subsection 6.5 of this rule;
10.1.b. a loan origination fee not to exceed two points based on the value of the real property securing the reverse mortgage loan at the time of loan closing;
10.1.c. the cost of document preparation which is reasonably related to the services provided as incurred and paid to a third-party provider;
10.1.d. the cost of appraising or surveying the property as incurred and paid to a third-party provider;
10.1.e. the cost of a title examination, an abstract of title or title insurance as incurred and paid to a third-party provider;
10.1.f. the cost of a tax search for tax liens existing at the time of closing if the search is not included in the title examination as the cost is incurred and paid to a third-party provider;
10.1.g. the payment to discharge any existing liens on the real property securing the loan as incurred and paid to a third-party;
10.1.h. the cost of recording the reverse mortgage loan as incurred and paid to a third-party;
10.1.i. the cost of actual attorney's fees charged to the lender in connection with the closing of the loan as incurred and paid to a third-party provider;
10.1.j. the cost of a credit report as incurred and paid to a third-party provider;
10.1.k. the cost of a flood zone search as incurred and paid to a third-party provider;
10.1.l. the cost of an inspection to be paid in connection with the origination of the loan but not subsequent to the loan closing as incurred and paid to a third-party provider;
10.1.m. the payment to purchase an annuity as incurred and paid to a third-party;
10.1.n. the payment for any repairs contracted for at or before the loan closing, irrespective of whether the repairs are completed at time of closing or whether the funds are held in escrow as the payments are incurred and paid to a third-party;
10.1.o. a one-time payment for a tax reporting service as incurred and paid to a third-party;
10.1.p. the cost of purchasing mortgage insurance as incurred and paid to a third-party provider;
10.1.q. the payment of real estate taxes and property insurance as incurred and paid to a third-party; and
10.1.r. the cost of mortgage brokerage services, not to exceed three points based on the value of the real property securing the reverse mortgage loan at the time of loan closing as incurred and paid to a third-party provider.
10.2. Subsequent Permitted Fees and Charges. -- During the life of the loan, lenders may charge the following fees or require the mortgagor(s) to incur the following costs or payments:
10.2.a. the cost of purchasing any additional mortgage insurance as agreed to by the parties;
10.2.b. the costs to maintain the structural integrity of the real property securing the loan in accordance with section 8 of this rule;
10.2.c. the costs of any appraisal for the refinancing or extension of the loan in accordance with subsection 6.12 of this rule;
10.2.d. the payment of real estate taxes and property insurance;
10.2.e. a monthly servicing and administrative fee of not more than $30 as agreed to by the parties.
10.3. Termination Fee. -- At termination of the loan, lenders may charge a termination or maturity fee which shall be the actual cost of arranging for the sale or foreclosure of the real property securing the loan. The fee may include actual broker's fees, advertising costs, moving and storage costs, and legal and other fees representing actual fees or costs charged to the lender.
10.4. Fees for Escrow Account Impermissible. -- Lenders may not charge any fees for the establishment, maintenance or termination of an escrow account with respect to any reverse mortgage loan.

W. Va. Code R. § 106-19-10