On January 17, 2023, House Bill No 2389 was offered to re-enact sections 6.2-1600 (Definitions) and 6.2-1607 (Licenses; places of business; changes) of the Code of Virginia with proposed amendments that would permit employees of licensed mortgage lenders and brokers to work from an unlicensed “remote location,” provided certain conditions are satisfied. Bill details:

• A “[R]emote location” means: a location, other than a licensee's principal place of business or office, at which the employees of a licensee may conduct business if the requirements set forth in subsection F of § 6.2-1607 are met.
• “Office" means a location, other than a licensee's principal place of business or a remote location, where (i) the licensee negotiates, places, finds, or makes Virginia mortgage loans; (ii) the licensee meets with Virginia consumers, excluding a consumer's home or place of business or public locations such as coffee shops or restaurants; (iii) the licensee's name, advertising or promotional materials, or signage indicates that the licensee negotiates, places, finds, or makes Virginia mortgage loans from the location; or (iv) the licensee maintains books, accounts, or records of Virginia mortgage loans.

The requirements for working from a “remote location” set forth in proposed Subsection F of § 6.2-1607 are as follows:

• The licensee has written policies and procedures for the supervision of employees working from a remote location;
• Access to the licensee's platforms and customer information is in accordance with the licensee's comprehensive written information security plan;
• No in-person customer interaction occurs at an employee's residence, unless such residence is a licensed location;
• Physical records are not maintained at a remote location;
• Customer interactions and conversations about consumers comply with federal and state information security requirements, including applicable provisions under the Gramm-Leach-Bliley Act and the Safeguards Rule established by the Federal Trade Commission, set forth at 16 C.F.R. Part 314, as such requirements may be amended from time to time;
• Employees working at a remote location access the licensee's secure systems directly from an out-of-office device, including a laptop, phone, desktop computer, or tablet, via a virtual private network (VPN) or comparable system that ensures secure connectivity and requires a password or other forms of authentication to access;
• The licensee ensures that appropriate security updates, patches, or other alterations to the security of all devices used at remote locations are installed and maintained;
• The licensee has the ability to remotely lock or erase company-related contents of any device or otherwise remotely limit access to a licensee's secure systems; and
• The Nationwide Mortgage Licensing System and Registry record of a licensee working from a remote location designates the principal place of business as the licensee's registered location, unless such licensee elects a licensed branch office as a registered location.

The bill was referred to the House Committee on Commerce and Energy, which proposed a substitute version of the bill on February 2. The bill proposed by the House Committee on Commerce and Energy provides:

• "Remote location" means a location, other than a licensee's principal place of business or office, at which the employees or independent contractors of a licensee may conduct business if the requirements set forth in subsection F of § 6.2-1607 are met.
• "Office" means a location where (i) the licensee negotiates, places, finds, or makes Virginia mortgage loans; (ii) the licensee's name, advertising or promotional materials, or signage indicates that the licensee negotiates, places, finds, or makes Virginia mortgage loans from the location; or (iii) the licensee maintains books, accounts, or records of Virginia mortgage loans. "Office" does not include a remote location.
• Licensees may allow employees or independent contractors to work from a remote location if:
  • The licensee has written policies and procedures for the supervision of employees or independent contractors working from a remote location. Such written policies and procedures shall include all the requirements of this subsection;
  • Access to the licensee's platforms and customer information is in accordance with the licensee's comprehensive written information security plan;
  • The licensee employs appropriate risk-based monitoring and oversight processes;
  • All employees or independent contractors who work from a remote location agree to comply with the licensee's established processes;
  • No in-person customer interaction occurs at an employee's residence, unless such residence is a licensed location;
  • Physical records are not maintained at a remote location;
  • Customer interactions and conversations about consumers comply with federal and state information security requirements, including applicable provisions under the Gramm-Leach-Bliley Act and the Safeguards Rule established by the Federal Trade Commission, set forth at 16 C.F.R. Part 314, as such requirements may be amended from time to time;
  • Employees or independent contractors working at a remote location access the licensee's secure systems directly from an out-of-office device, including a laptop, phone, desktop computer, or tablet, via a virtual private network (VPN) or comparable system that ensures secure connectivity and requires a password or other forms of authentication to access;
  • The licensee ensures that appropriate security updates, patches, or other alterations to the security of all devices used at remote locations are installed and maintained;
  • The licensee has the ability to remotely lock or erase company-related contents of any device or otherwise remotely limit access to a licensee's secure systems; and
  • The Nationwide Mortgage Licensing System and Registry record of a licensee working from a remote location designates the principal place of business as the licensee's registered location, unless such licensee elects a licensed branch office as a registered location.

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