Judiciary

This bill restricts mortgage prepayment penalty rules to loans on owner-occupied properties with one to four dwelling units. Under the new provisions, lenders must allow full prepayment after one year without penalty, and any prepayment fees during the first year cannot exceed two percent of the remaining balance. Alternatively, lenders may charge prepayment penalties if they clearly disclose the terms in writing, obtain borrower consent, and ensure no penalty applies after 60 months. The law also requires lenders offering penalty-based loans to also offer a product without penalties and clarifies that prepayment penalties are not considered interest.

HB 7437 extends the expiration date for "Don't Block the Box" automated traffic violation detection systems from January 15, 2027, to January 15, 2030. This bill does not change how the systems operate or who can use them, only delays the deadline for discontinuing the technology. The systems monitor vehicles running red lights at intersections to prevent blocking crosswalks and are used by state and local governments. Municipalities and the state Department of Transportation directly benefit from this extension, allowing continued use for three more years.

HB 8104 restricts mortgage prepayment penalty rules to loans secured by owner-occupied properties containing one to four dwelling units. Under the new provisions, lenders must allow borrowers to pay off these mortgages without penalty after the first year, while limiting early prepayment fees to two percent of the remaining balance. The bill also permits lenders to offer alternative loan products with different prepayment terms, provided they clearly disclose the costs, obtain borrower consent, and ensure no penalties apply after sixty months. Additionally, lenders offering these alternative products must also make available a standard mortgage option that complies with the stricter prepayment limitations.

HB 7763 changes how owners of properties with shared driveways or access paths split the cost of keeping them in good condition. Under the new rules, if there is no written agreement, all owners sharing the easement must pay for maintenance based on how much each property benefits, rather than using the property's market value or tax assessment to decide the share. The law also clarifies that any owner who damages the path is solely responsible for fixing that specific damage, and it allows other owners to take legal action if someone refuses to pay their share or perform repairs. This update applies to residential properties and ensures that maintenance responsibilities are calculated by usage benefit instead of property worth.

Amends the general law relative to right-of-way of pedestrians to reference the schedule of violations for the adjudication of traffic offenses contained in § 31.41.1-4.