WV Amends Mortgage Law and Adds Remote Work Provisions

West Virginia recently amended its mortgage law to, among other things, add remote work provisions for licensees.  Previously, the West Virginia Division of Financial Institutions had pandemic guidance allowing MLOs to work remotely.  However, that guidance expired on June 1, 2022, which made West Virginia one of the handful of states that mandated work from a licensed location.  The amendments also add requirements related to change of control and background checks for control persons and key individuals. 

Under the new remote work provisions, certain specific requirements must be met for a mortgage broker, lender, or servicer licensee to allow its MLOs to work remotely.  The requirements include, but are not limited to:

• No in-person customer interactions may occur at the remote location;
• The remote location cannot be a designated business location for consumers;
• Appropriate data safeguards must be put in place, including the use of a VPN, and ensuring appropriate security systems are installed, updated, and patched;
• The licensee must conduct risk-based monitoring and oversight of remote employees, including maintaining records of the monitoring and oversight;
• No consumer records may be maintained at the remote location;
• The remote location must be a safe and secure workplace;
• Employees must be trained on and comply with keeping consumer conversations confidential; and
• Written policies and procedures must be put in place to ensure licensee’s compliance with this law.

Also, the licensee must: (i) periodically review and document its compliance with these remote work requirements; (ii) certify annually it has complied with the remote work requirements; and (iii) if requested, provide proof of such periodic review and certification.

The new provisions become effective June 3, 2024.