Earlier this month, the West Virginia Division of Financial Institutions adopted provisions relating to its Residential Mortgage Lenders, Brokers, and Loan Originators Rules that affect the configurations for Cx21375 “WV Ability-to-Repay Worksheet”. These provisions are effective on May 1, 2026.
W. Va. Code St. R. § 106-5-11.2 will now state:
If a borrower’s household debt-to-income ratio will exceed 50 percent upon the extension of new residential mortgage loan as determined from a credit report, credit application, financial statement, then the broker and initial lender must document, in writing and maintain in accordance with the provisions of subsections 3.1.30. or 6.1.24. of this rule, an assessment of the borrower’s ability to repay the loan according to its terms. Such assessment must be signed by the lender or the lender's representative and the borrower(s) Such assessment must be provided to the borrower(s) and must consider the household’s current debt obligations, the term of the loan, and the borrower(s) circumstances along with their current and projected income and assets, other than a security interest in the real estate taken to secure the loan.
A new section W. Va. Code St. R. § 106-5-11.4 has been created which states:
The requirement of subsection 11.2 of this rule shall not apply if the loan originated is insured or guaranteed by an agency of the federal government and meets the qualifications established by the insuring or guaranteeing federal agency. This includes, but is not limited to, Federal Housing Administration within the Department of Housing and Urban Development, Veteran’s Administration, and U.S. Department of Agriculture Rural Development loans.
The changes to Cx21375 are:
These changes are available for testing on Stage & Stage 2 servers and will take effect on May 1, 2026. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
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