A Virginia originator makes a false promise in 2026 that concerns a loan that is never actually made. Can a deceptive promise in connection with mortgage origination fall within the prohibition even if the loan never funds?
Correct Answer
A) Caught: a false promise in connection with the transaction suffices
No person engaged in the business of originating residential mortgage loans in the Commonwealth may use any deception, fraud, false pretense, false promise or misrepresentation in connection with a mortgage loan transaction, and a false promise is listed alongside the others. Other choices: the section speaks to the transaction rather than to a completed loan; payment is not an element; and the form of the promise is not the test. Source: Va. Code § 6.2-1629(A)
Why This Is the Correct Answer
No person engaged in the business of originating residential mortgage loans in the Commonwealth may use any deception, fraud, false pretense, false promise or misrepresentation in connection with a mortgage loan transaction, and a false promise is listed alongside the others. Other choices: the section speaks to the transaction rather than to a completed loan; payment is not an element; and the form of the promise is not the test. Source: Va. Code § 6.2-1629(A)
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