A lender in West Virginia is considering making a high-cost home loan to a borrower with limited income. The borrower's attorney warns that certain lending practices in connection with this loan may violate state law beyond federal TILA requirements. Which West Virginia statute specifically governs consumer protection in mortgage lending and prohibits predatory lending practices at the state level?
Correct Answer
C) West Virginia Consumer Credit and Protection Act, W. Va. Code §§ 46A-1-101 et seq.
The West Virginia Consumer Credit and Protection Act (W. Va. Code §§ 46A-1-101 et seq.) is WV's primary state-level statute governing lending practices, mortgage transactions, and consumer protections. It prohibits predatory lending, unfair trade practices, and deceptive acts in real estate financing, providing protections that supplement and in some cases exceed federal TILA/RESPA requirements.
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Related Concepts
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
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