Pennsylvania amends certain mortgage licensing requirements

Licensing State Issues State Legislation Mortgages

On February 3, the Pennsylvania governor signed HB 1588, which makes various amendments to the Pennsylvania Consolidated Statutes related to mortgage loan industry licensing requirements. Among other things, the amendments make several updates to the definition of remote location, installment sales contract, mortgage loan correspondent, mortgage originator, qualifying individual, and wholesale table funder. The bill also provides new licensed activity exceptions. Specifically, a mortgage lender may act as a mortgage broker or mortgage loan correspondent without obtaining separate mortgage broker/mortgage loan correspondent licenses. Additional amendments relate specifically to mortgage loan correspondents, including prelicensing and continuing education requirements; mortgage loan business prohibitions; licensing suspension, revocation, and refusal provisions; and licensing application guidelines related to, among other things, surety bonds, minimum net worth, and the designation of qualifying individuals for a mortgage loan correspondent’s principal place of business and branch locations. Certain provisions take effect immediately, while the remainder of the changes take effect in 60 days.