6.2-1179 - (Effective October 1, 2010) Real estate loans; required investment. - Virginia Statutes

§ 6.2-1179. (Effective October 1, 2010) Real estate loans; requiredinvestment.

A. A state savings institution may originate, invest in, sell, purchase,service, participate, or otherwise deal in loans secured by a lien on realestate, subject to the requirements of this chapter. Such loans that areinsured, guaranteed or made under a firm commitment to be sold, assigned orotherwise transferred to an agency or instrumentality of the federalgovernment or to a corporation organized under the laws of the United States,including the Department of Housing and Urban Development, the VeteransAdministration, the Federal National Mortgage Association, the GovernmentNational Mortgage Association or the Federal Home Loan Mortgage Corporation,may be made in accordance with the requirements of such federal agencies,instrumentalities or corporations.

B. At least 60 percent of assets of a state savings institution shall beinvested in real estate loans. For purposes of meeting this 60-percentrequirement, a savings institution may include (i) loans secured by a lien ona manufactured building or buildings; (ii) the value of securities held by itthat represent a beneficial interest, participation interest or other similarinterest in loans secured by a lien on real estate including participationcertificates issued by the Federal National Mortgage Association, GovernmentNational Mortgage Association or the Federal Home Loan Mortgage Corporation;and (iii) the value of liquid assets equal to the minimum liquid assetrequirement for membership in a Federal Home Loan Bank.

C. A state savings institution may not purchase, participate in or acquire aninterest in any real estate loan that it could not legally make, without theprior approval of the Commissioner.

(1985, c. 425, § 6.1-194.62; 1990, c. 3; 2010, c. 794.)