West Virginia Mortgage Law Practice Test

What is the name of the state regulatory agency that oversees the lending activities of mortgage loan originators, mortgage brokers, and mortgage lenders?

1. Department of Financial Services

2. Division of Banking

3. Division of Financial Institutions

4. Office of Consumer Protection

The correct answer is: Division of Financial Institutions

The correct answer is the Division of Financial Institutions. This agency is responsible for regulating and supervising the lending activities of mortgage loan originators, mortgage brokers, and mortgage lenders in West Virginia. Its mission includes ensuring safety and soundness in the financial services industry, protecting consumers, and fostering a competitive marketplace. The Division of Financial Institutions plays a vital role in enforcing state mortgage laws and regulations, which helps maintain the integrity of the mortgage lending process. It is tasked with conducting examinations, providing guidance to licensees, and taking disciplinary actions when necessary, which ultimately helps to promote transparency, prevent fraud, and protect consumers within the state. In contrast, the other options do not fulfill the specific role of overseeing mortgage lending practices. The Department of Financial Services is associated with broader financial regulation, while the Division of Banking primarily focuses on banks rather than mortgage-specific entities. The Office of Consumer Protection is geared more towards protecting consumer rights than directly regulating mortgage lending activities.