WEST VIRGINIA LEGISLATURE
2024 REGULAR SESSION
Introduced
Senate Bill 261
By Senators Weld and Smith
[Introduced January 11, 2024; referred
to the Committee on Military; and then to the
Committee on Finance]
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A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article,
designated §31-18F-1, §31-18F-2, §31-18F-3, §31-18F-4, §31-18F-5, and §31-18F-6; and
to amend and reenact §36-8-13 of said code, all relating generally to creating the West
Virginia Veterans' Home Loan Mortgage Program of 2024; establishing a fund known as
the West Virginia Veterans' Home Loan Mortgage Fund; declaring the purpose of the fund;
providing that the West Virginia Housing Development Fund shall administer the fund;
setting forth terms of the program; authorizing the West Virginia Housing Development
Fund to make certain mortgage loans from the fund; and authorizing the unclaimed
property administrator to transfer a certain amount from the Unclaimed Property Trust
Fund to the fund.
Be it enacted by the Legislature of West Virginia:
CHAPTER 31. CORPORATIONS.
ARTICLE 18F. THE WEST VIRGINIA VETERANS’ HOME LOAN MORTGAGE
PROGRAM OF 2024.
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§31-18F-1. Short title.
This article shall be known as the West Virginia Veterans' Home Loan Mortgage Program
Act of 2024.
§31-18F-2. Definitions.
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As used in this section, the following definitions apply:
(1) "Eligible veteran" means an individual who is a West Virginia resident and who:
(a) Is a member of the West Virginia National Guard;
(b) Is a member of the federal reserve forces of the armed forces of the United States,
serving pursuant to Title 10 of the United States Code;
(c) Is serving on federal active duty pursuant to Title 10 of the United States Code;
(d) Is an unremarried spouse of an individual who was otherwise an eligible veteran and
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was killed in the line of duty;
(e) Is a child of an individual who was otherwise an eligible veteran and was killed in the
line of duty;
(f) Is an eligible veteran as defined by rule promulgated by the West Virginia Housing
Development Fund; or
(g) Was previously a member of the armed forces pursuant to subdivisions (a), (b), or (c)
and was discharged under honorable conditions.
(h) An individual who meets the requirements of paragraph (a), (b), (c), (f), or (g) of this
subdivision 2 of this article, and who is establishing their primary residence in West Virginia, and is
purchasing a home in this state for the first time.
(2) "First-time home buyer" means an individual determined by the fund to be a first-time
home buyer pursuant to rules adopted by the fund.
(3) "Fund" means the West Virginia Veterans’ Home Loan Mortgage Fund.
(4) "Mortgage loan" means a loan for the purchase of real property with any improvements
located within this state that is to be used for primary residential purposes by the eligible veteran
and that is based upon a written instrument approved by a federal agency, and that is secured by a
deed of trust.
(5) "Participating financial institution" means a corporate lender or other loan originator
approved by the West Virginia Housing Development Fund for originating loans pursuant to this
article.
(6) "Resident" means an individual who maintains, or will maintain after receiving a
mortgage loan, a primary residence within West Virginia, and who has not established a residence
elsewhere even though the individual may be temporarily absent from the state.
(7) "Under honorable conditions" means a discharge or separation from military duty
characterized by the armed forces as under honorable conditions. The term includes honorable
discharge and general discharge. The term does not include a dishonorable discharge, or another
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administrative discharge characterized by military regulation as other than honorable.
(8) "Veterans’ home loan mortgage program" or "program" means the program created in
§31-18F-1 et seq. of this code.
§31-18F-3. Veterans' Home Loan Mortgage Program created.
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(a) There is hereby created by this article, the West Virginia Veterans’ Home Loan
Mortgage Program of 2024 under the direction and management of the West Virginia Housing
Development Fund for eligible veterans who are first-time home buyers.
(b) The West Virginia Housing Development Fund is authorized to purchase mortgage
loans from participating financial institutions pursuant to this article or through direct origination.
§31-18F-4. Terms of program.
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(a) Interest on a home mortgage loan made pursuant to this section must be charged at 1
percent less than the federal national mortgage association’s delivery rate or 1 percent lower than
the West Virginia Housing Development Fund's Homeownership Program, whichever is less. If the
federal national mortgage association’s rate becomes unavailable, the West Virginia Housing
Development Fund shall use another similar rate for the purposes of this section.
(b) The maximum amount of a loan made by the West Virginia Housing Development Fund
pursuant to this article is 100 percent of the value of the statewide allowable purchase price
determined by the West Virginia Housing Development Fund.
(c) The West Virginia Housing Development Fund shall require as a condition for a loan,
that an eligible veteran participate in a first-time home buyer education program approved by the
West Virginia Housing Development Fund.
(d) A loan made by the West Virginia Housing Development Fund must be secured by a
government guaranty unless the West Virginia Housing Development Fund determines to allow
the use of conventional mortgage insurance requirements and coverage.
(e) An eligible veteran shall participate in a loan by contributing a minimum amount of
$2,500 unless the West Virginia Housing Development Fund determines otherwise. An eligible
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veteran may use the minimum contribution toward paying closing costs and may borrow from the
Veterans' Home Loan Mortgage Program the maximum loan amount allowed by the mortgage
insurer for the loan.
(f) There is no limit on the maximum amount of income that may be earned by an eligible
veteran for the purposes of a loan pursuant to this article.
(g) In order to allow small financial institutions to participate equitably in the program along
with large financial institutions, the West Virginia Housing Development Fund may adopt rules to
specify the maximum amount of mortgage loans that may be made by any one participating
financial institution.
(h) The Legislative Auditor shall have access to all documentation used for the purpose of
the program.
(i) The West Virginia Housing Development Fund shall annually submit to the Joint
Committee on Government and Finance a report describing, at a minimum, the operation and use
of this program. This report shall be due no later than December 1 of each year and may be
combined with other reports submitted by the West Virginia Housing Development Fund to the
Legislature.
§31-18F-5. West Virginia Veterans’ Home Loan Mortgage Fund.
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(a) The board of directors of the West Virginia Housing Development Fund may create and
establish the West Virginia Veterans' Home Loan Mortgage Fund to make moneys available to the
West Virginia Housing Development Fund for loans that qualify pursuant to this article.
(b) The West Virginia Housing Development Fund shall administer the West Virginia
Veterans’ Home Loan Mortgage Fund and service the mortgage loans under the program.
(c) The West Virginia Housing Development Fund shall receive all moneys transferred to
the Fund pursuant to §36-8-13(f) of this code, any other moneys to be deposited into the fund, and
any repayments and interest paid to the fund.
(d) As a loan pursuant to this article is repaid, the principal payments on the loan must be
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redeposited in the fund until all the principal of the loan is repaid. In the event of foreclosure, the
proceeds from the sale of the foreclosed property must be deposited to the fund. The fund may be
used to cover the initial purchase of the mortgage loans from participating lenders as well as
amounts determined by the West Virginia Housing Development Fund, to pay for the origination
and servicing release fees of a loan by a participating financial institution and to cover the holding
costs of any foreclosed properties. Interest received on the loans may be used by the West
Virginia Housing Development Fund to pay the reasonable costs for the administration of the
program and servicing of the loans. Remaining interest received on the loan must be deposited
into the fund.
(e) Following the initial origination of loans, loan repayments and any interest earnings of
the fund may be used by the West Virginia Housing Development Fund to originate additional
program loans or to assist in the development of affordable housing units for the benefit of
veterans.
(f) The West Virginia Housing Development Fund may invest and reinvest all moneys in
the Veterans’ Home Loan Mortgage Fund in any investments authorized under W. Va. Code § 31-
18-6, pending the disbursement thereof in connection with the Veterans' Home Loan Mortgage
Fund.
(g) The West Virginia Housing Development Fund will operate the Veterans' Home Loan
Mortgage Fund in accordance with customary practices of mortgage lending and loan servicing,
including originating loans through qualified lending institutions, industry standard underwriting,
minimum down payments, house purchase prices, mortgage lien position, loan origination, and
loan servicing fees like the West Virginia Housing Development Fund Homeownership Program or
similar program.
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§31-18F-6. Rules to be adopted by Fund.
(a) The Fund shall promulgate rules, including emergency rules, if necessary, in
accordance with §29A-3-1 et seq. of this code, including rules:
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(1) Specifying which financial institutions may be participating financial institutions;
(2) Specifying underwriting criteria for a program loan, such as minimum down payment,
credit score, ratios of housing expense and of all reoccurring debt as a percentage of income of
the borrower, and any exceptions to those criteria;
(3) Specifying the statewide allowable purchase price of a home for the purposes of the
program;
(4) Specifying the security required for a mortgage loan financed by the program;
(5) Providing the legislative auditor with access to records of participating financial
institutions regarding loans made pursuant to this program;
(6) Governing the loan application process;
(7) Specifying the maximum origination fee that may be charged by a participating financial
institution; and
(8) Specifying the maximum servicing fees that may be charged by the Fund; and
(9) Other loan conditions determined to be necessary by the Fund.
(b) The Fund may also promulgate rules, including emergency rules, if necessary,
changing any of the following provisions if the Fund determines a change is necessary in order to
carry out the purposes of the program:
(1) The definition of eligible veteran:
(2) The security for a loan provided pursuant to this program; and
(3) The requirements for minimum participation for the eligible veteran.
CHAPTER 36. ESTATES AND PROPERTY.
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ARTICLE 8. UNIFORM UNCLAIMED PROPERTY ACT.
§36-8-13. Deposit of funds.
(a) The administrator shall record the name and last known address of each person
appearing from the holders reports to be entitled to the property, and the name and last known
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address of each insured person or annuitant and beneficiary and with respect to each policy or
annuity listed in the report of an insurance company, its number, the name of the company, and the
amount due.
(b) The Unclaimed Property Fund is continued. The administrator shall deposit all funds
received pursuant to this article in the Unclaimed Property Fund, including the proceeds from the
sale of abandoned property under §36-8-12 of this code. The administrator may invest the
Unclaimed Property Fund with the West Virginia Board of Treasury Investments, or the Investment
Management Board, and all earnings shall accrue to the fund and are available for expenditure in
accordance with the article. In addition to paying claims of unclaimed property duly allowed, the
administrator may deduct the following expenses from the Unclaimed Property Fund:
(1) Expenses of the sale of abandoned property;
(2) Expenses incurred in returning the property to owners, including without limitation the
costs of mailing and publication to locate owners;
(3) Reasonable service charge; and
(4) Expenses incurred in examining records of holders of property and in collecting the
property from those holders.
(c) The Unclaimed Property Trust Fund is continued within the State Treasury. The
administrator may invest the Unclaimed Property Trust Fund with the West Virginia Board of
Treasury Investments and all earnings shall accrue to the fund and are available for expenditure in
accordance with this article. After deducting the expenses specified in subsection (b) of this
section and maintaining a sum of money from which to pay claims duly allowed, the administrator
shall transfer the remaining moneys in the Unclaimed Property Fund to the Unclaimed Property
Trust Fund.
(d) On or before December 15 of each year, notwithstanding any provision of this code to
the contrary, the administrator may transfer the sum of $1 million from the Unclaimed Property
Trust Fund to the Jumpstart Savings Trust Fund, until an actuary certifies there are sufficient funds
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to satisfy all obligations and administrative expenses of the Jumpstart Savings Program.
(e) Subject to cash availability, on or before July 15, 2024, the unclaimed property
administrator may transfer up to $8 million from the Unclaimed Property Trust Fund to the West
Virginia Veterans' Home Loan Mortgage Fund, as provided in §31-18F-5 of this code.
(e)(f) After transferring any money required by subsections (d), and (e), and (f) of this
section, the administrator shall transfer moneys remaining in the Unclaimed Property Trust Fund
to the General Revenue Fund.
NOTE: The purpose of this bill is to create the West Virginia Veterans' Home Loan
Mortgage Program of 2024.
Strike-throughs indicate language that would be stricken from a heading or the present law,
and underscoring indicates new language that would be added.
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