West Virginia Updates Residential Mortgage Lender and Broker Rule
West Virginia Updates Residential Mortgage Lender and Broker Rule
West Virginia Updates Residential Mortgage Lender and Broker Rule
The West Virginia Division of Financial Institutions has adopted amendments to the Rule Pertaining to Residential Mortgage Lenders, Brokers, and Loan Originators (106 CSR 5), effective May 1, 2026, under the authority of House Bill 4245 (W. Va. Code §31A-2-4(c)(11)). The rule applies to all licensed mortgage lenders, brokers, servicers, and loan originators operating in West Virginia.
Key Updates:
- Lenders, brokers, and servicers must retain loan records for 36 months from closing or, if the loan does not close, from the date of application or last relevant document
- Records may be kept electronically but must be organized by individual loan file, legible, and available to the Commissioner upon request; licensees using out-of-state storage must designate that location in NMLS
- Advertising materials, including social media and websites, must be retained for three years; team names require DBA registration with the West Virginia Secretary of State and in NMLS
- Written justification is required when using an appraiser whose main office is more than 75 miles from the subject property
- Mortgage loan originator temporary authority is capped at 120 days, is non-renewable, and does not activate until an application has been filed in NMLS
Full rule text is available on the WV Secretary of State Code of State Rules page.
FS Vector monitors ongoing state guidance for residential mortgage licensing and compliance to help ensure compliance with the latest requirements. Contact FS Vector for assistance navigating West Virginia’s updated recordkeeping, advertising, and mortgage loan originator licensing requirements.