§ 6121. General requirements
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 7 Pa.C.S.A. Banks and BankingEffective: April 4, 2022
Effective: April 4, 2022
7 Pa.C.S.A. § 6121
§ 6121. General requirements
A licensee shall do all of the following:
(1) Comply with all provisions of the act of January 30, 1974 (P.L. 13, No. 6),1 referred to as the Loan Interest and Protection Law (Usury Law). This paragraph shall not supersede section 501 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (94 Stat. 161, 12 U.S.C. § 1735f-7a) or the Alternative Mortgage Transaction Parity Act of 1982 (96 Stat. 1545, 12 U.S.C. §§ 3801-3806 et seq.).
(6) If a payment is made in cash on account of a mortgage loan, give to the consumer at the time the payment is actually received a written receipt which shall show the account number or other identification mark or symbol, date, amount paid and, upon request of the consumer, the unpaid balance of the account prior to and after the cash payment.
(7) Upon written request from the consumer, give or forward to the consumer within ten days from the date of receipt of the request a written statement of the consumer's account which shall show the dates and amounts of all installment payments credited to the consumer's account, the dates, amounts and an explanation of all other charges or credits to the account and the unpaid balance of the account. A licensee shall not be required to furnish more than two statements in any 12-month period.
(iii) Release any lien on the dwelling or residential real estate and cancel the same of record and, at the time the mortgage loan agreement or promissory note evidencing the mortgage loan is returned, deliver to the consumer good and sufficient assignments, releases or any other certificate, instrument or document as may be necessary to evidence the release.
(10) Refund all fees, other than those fees paid by the licensee to a third party, paid by a consumer when a mortgage loan is not produced within the time specified by the mortgage broker or mortgage lender at the rate, term and overall cost agreed to by the consumer. This paragraph shall not apply if the failure to produce a mortgage loan is due solely to the consumer's negligence, his or her refusal to accept and close on a loan commitment or his or her refusal or inability to provide information necessary for processing, including employment verifications and verifications of deposits. The licensee shall disclose to the consumer, in writing, at the time of a loan application which fees paid or to be paid are nonrefundable.
(12) Upon written request from the consumer or a person authorized by the consumer, provide, within ten days from the date of receipt of the request, a written statement regarding the unpaid balance of a consumer's mortgage loan or account. The statement shall contain the total amount required to pay off a mortgage loan and a specific expiration date for the payoff information. A licensee shall not be required to furnish more than two statements in any 12-month period.
(iii) In the event that a licensee believes that a mortgage originator sponsored by the licensee has engaged in any activity that is illegal or in violation of this chapter or any regulation or statement of policy promulgated under this chapter, the licensee shall provide the department with written notification of the belief and the licensee's proposed corrective measures within 30 days. A licensee shall not be liable to a mortgage originator in connection with the notification.
(i) Request the mortgage holder release the lien on the dwelling or residential real estate and cancel the same of record and, at the time the mortgage loan agreement or promissory note evidencing the mortgage loan is returned, deliver to the consumer good and sufficient assignment, releases or other certificate, instrument or document as may be necessary to evidence the release.
Credits
2008, July 8, P.L. 796, No. 56, § 1, effective in 120 days [Nov. 5, 2008]. Amended 2009, Aug. 5, P.L. 117, No. 31, § 4, imd. effective; 2013, July 2, P.L. 210, No. 38, § 1, effective in 60 days [Sept. 3, 2013]; 2017, Dec. 22, P.L. 1260, No. 81, § 4, effective upon promulgation of regulations under 7 Pa.C.S.A. § 6141 [48 Pa.B. 2493, April 28, 2018]; 2022, Feb. 3, P.L. 24, No. 8, § 2, effective in 60 days [April 4, 2022].
7 Pa.C.S.A. § 6121, PA ST 7 Pa.C.S.A. § 6121
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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