§ 6112. Exceptions to license 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. § 6112
§ 6112. Exceptions to license requirements
The following persons shall not be required to be licensed under this chapter in order to conduct the mortgage loan business:
(1) A banking institution or a federally chartered or State-chartered credit union, if the primary regulator of the banking institution or federally chartered or State-chartered credit union supervises the banking institution or federally chartered or State-chartered credit union. A banking institution or a federally chartered or State-chartered credit union may register with the department for the purpose of having individuals under its direct supervision and control licensed as mortgage originators, provided that the registered entity meet any of the following requirements:
(2) An attorney at law not otherwise engaged in or holding himself or herself out to the public as being engaged in the mortgage loan business who acts as a mortgage broker or a mortgage originator in negotiating or placing a mortgage loan in the normal course of legal practice. The exception under this paragraph shall not apply if the attorney is compensated by any of the following:
(4) Any agency or instrumentality of the Federal Government or a corporation otherwise created by an act of the United States Congress, including the Federal National Mortgage Association, the Government National Mortgage Association, the Veterans' Administration, the Federal Home Loan Mortgage Corporation and the Federal Housing Administration, and employees thereof acting within the scope of their employment.
(6) Consumer discount companies, except that a consumer discount company that acts as a mortgage broker, mortgage lender or mortgage servicer, shall be subject to the provisions of Subchapter C (relating to mortgage loan business restrictions and requirements) and sections 6131(c)(2), (3) and (5), 6135, 6138 (relating to authority of department) and 6140(b) (relating to penalties). Employees or individuals under the direct supervision and control of licensees under the act of April 8, 1937 (P.L. 262, No. 66),1 known as the Consumer Discount Company Act, that act as mortgage originators shall be subject to the licensing requirements of this chapter. Consumer discount companies that employ or directly supervise and control mortgage originators shall be subject to the same requirements as mortgage lenders in regard to the employment and supervision of mortgage originators.
(7) Affiliates of banking institutions and subsidiaries and affiliates of federally chartered or State-chartered credit unions. The exception under this paragraph does not apply to consumer discount companies. Notwithstanding the exception under this paragraph, subsidiaries and affiliates of federally chartered or State-chartered credit unions and affiliates of banking institutions shall:
(i) be subject to the provisions of sections 6121(1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12), (13) and (14) (relating to general requirements), 6122(a) and (b) (relating to powers conferred on certain licensees engaged in the mortgage loan business), 6123(a) (relating to mortgage loan business prohibitions), 6124 (relating to prohibited clauses in mortgage loan documents), 6125 (relating to mortgage lending authority), 6126 (relating to requirements as to open-end loans), 6135(a)(2), (3) and (4), (b) and (c), 6138 and 6140(b);
(iii) As required under 24 CFR § 3400.103(e)(7)(iii) (relating to individuals required to be licensed by states), the department must periodically examine the books and activities of an organization it determines is a bona fide nonprofit organization and revoke its status as a bona fide nonprofit organization if it does not continue to meet the criteria under 24 CFR § 3400.103(e)(7)(ii).
(13) An installment seller of, or holder of installment sales contracts secured by, manufactured homes who is licensed under 12 Pa.C.S. Ch. 62 (relating to motor vehicle sales finance) or an employee of the licensed entity, provided the installment seller or holder only engages in the mortgage loan business regarding installment sales contracts secured by manufactured homes that are purchase-money mortgage loans.
(17) An individual or entity licensed under the act of September 2, 1965 (P.L. 490, No. 249),2 referred to as the Money Transmission Business Licensing Law, if the individual or entity only engages in the mortgage loan business to the extent funds are transmitted from a mortgagor to make mortgage payments on behalf of the mortgagor in order to exceed regularly scheduled minimum payment obligations under the terms of the indebtedness.
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, § 3, imd. effective; 2010, Nov. 23, P.L. 1346, No. 122, § 2, imd. effective; 2013, July 2, P.L. 210, No. 38, § 1, effective in 60 days [Sept. 3, 2013]; 2013, Nov. 27, P.L. 1081, No. 98, § 2, effective in one year [Dec. 1, 2014]; 2017, Dec. 22, P.L. 1260, No. 81, § 3, 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. § 6112, PA ST 7 Pa.C.S.A. § 6112
Current through Act 13 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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