Following a trend started during the COVID pandemic, Virginia State Delegate Bill Wiley (R) introduced a bill, HB 2389 in the current legislative session of the Virginia General Assembly that would allow employees of a Virginia-licensed mortgage lender or broker (licensee) to work at an unlicensed remote location upon certain conditions being met. Specifically, the bill would amend Virginia’s Mortgage Lenders and Mortgage Brokers law (Va. Code §§ 6.2-1600, et seq.) by:

  • Outlining a list of requirements that must be satisfied in order for a licensee’s employees to work from an unlicensed location (remote location); and
  • Adding “office” and “remote location” as defined terms.

At a high level, the bill would require a licensee to meet the following requirements before employees are permitted to work from a remote location:

  • The licensee must have written policies and procedures for the supervision of employees working from a remote location;
  • Access to the licensee’s platforms and customer information must be in accordance with the licensee’s comprehensive written information security plan;
  • No in-person customer interactions may occur at an employee’s residence, unless such residence is a licensed location;
  • Physical records may not be maintained at a remote location;
  • Customer interactions and conversations about consumers must comply with federal and state information security requirements;
  • Access to the licensee’s secure systems must occur through a virtual private network or a comparable system;
  • The licensee must ensure that appropriate security updates are installed and maintained on all devices used at a remote location;
  • The licensee must have the ability to remotely lock or erase company-related content from any device or otherwise remotely limit access to a licensee’s secure systems; and
  • The registered location of certain persons in the Nationwide Mortgage Licensing System and Registry (NMLS) must reflect the licensee’s principal place of business or a licensed branch office.

We will track this bill as it makes its way through the Virginia General Assembly.