6.1-423 - (Repealed effective October 1, 2010) Escrow accounts. - Virginia Statutes

§ 6.1-423. (Repealed effective October 1, 2010) Escrow accounts.

All moneys required by a mortgage lender required to be licensed under thischapter to be paid by borrowers in escrow to defray future taxes or insurancepremiums, or for other lawful purposes, shall be kept in accounts segregatedfrom accounts of the lender, and shall not be commingled with other funds ofthe lender. No licensed mortgage lender shall require any borrower to pay anymoneys in escrow to defray future taxes and insurance premiums, or for anyother purpose, in connection with a subordinate mortgage loan as referred toin Chapter 7.3 (§ 6.1-330.49 et seq.) of this title, except where escrows forsuch purposes are not being maintained in connection with the mortgage loansuperior to such subordinate mortgage loan. Mortgage lenders holding money inescrow for insurance premiums shall notify the insurer in writing withinthirty days of a change of the mortgage lender's billing address, or sixtydays prior to the renewal date of the insurance policy, whichever is later.

(1987, c. 596; 2001, c. 504.)