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Secretary's Letters - Mortgage Licensees


Secretary’s Letters are not intended as and do not constitute legal advice.  Please keep in mind that these letters contain generalizations regarding the applicable law discussed herein and are therefore not inclusive of all of the law’s provisions, conditions, exceptions, and details.  It is critically important for you to read the applicable law and seek guidance from your legal counsel regarding the effects of the law on your business operations. NOTE: most links on this page are to PDF documents.

Secretary's Letter on Cybersecurity (PDF)
The Department continues to work collaboratively with federal regulators, other states financial regulators, and other Commonwealth agencies to address cybersecurity challenges.

Mortgage Loan Correspondents (PDF)
Acting Deputy Secretary’s letter to mortgage loan correspondents providing guidance if assignment of loans to a warehouse table funder does not occur simultaneously with funding as required by Section 6102 of the Mortgage Licensing Act, 7 Pa. C.S. § 6102.

One-Page Mortgage Disclosure Discontinued (PDF)
Deputy Secretary’s Letter announces that Pennsylvania one-page mortgage disclosure is no longer required to be issued by mortgage licensees.

Consumer Equity Protection Act (the CEPA), changes in federal law  (PDF)
Deputy Secretary’s Letter announces changes to coverage of the Consumer Equity Protection Act as a result of changes in federal law.

Mortgage Licensing Amendments in Act 38 of 2013 (PDF)
A letter from the Secretary of Banking and Securities regarding amendments of the Mortgage Licensing Act, which will bring the Act into compliance with federal SAFE Act regulations as well as remove statutory impediments that had restricted entry into the non-bank mortgage business.

Final HUD Regulation Under SAFE Act (PDF)
A letter from the Secretary of Banking regarding the final regulation issued by the U.S. Department of Housing and Urban Development entitled "SAFE Mortgage Licensing Standards and Oversight Responsibilities."

Changes in the Manner Entities May Institute Mortgage Foreclosures (PDF)
A letter from the Secretary of Banking and Executive Director of the PA Housing Finance Agency regarding the transition from the Act 91 Notice to the Act 6 Notice.

All Licensees Under the Mortgage Licensing Act and Consumer Discount Company Act  (PDF)
The Commonwealth of Pennsylvania Department of Banking (the recently issued two statements of policy that may affect certain aspects of your business. These statements of policy became effective on July 10, 2010, by virtue of their publication in the Pennsylvania Bulletin (40 Pa.B. 3868, 3869).

Pre-Licensing Test Deadline Extension (PDF)
Deputy Secretary's letter to notify the mortgage industry that the deadline for passing the national and state components of the mortgage originator test will be extended to April 30, 2010. The deadline to complete the pre-licensing education requirements has not changed.

SAFE Act Legislation (PDF)
The letter provides information regarding Act 31 of 2009, House Bill 1654 (P.N. 2448), which amends Pennsylvania’s existing mortgage industry licensing law, 7 Pa.C.S. Chapter 61, in order to implement the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the “SAFE Act”), 12 U.S.C. § 5101 et seq.

New Mortgage Regulation (PDF)
This Secretary's Letter summarizes the requirements for mortgage and consumer discount licensees under the Department's new regulation for proper conduct of lending and brokering in the mortgage loan business.  Mortgage Regulation here.

Mortgage Reform Laws  (PDF)
Provides detailed explanation of three bills signed into law by Governor Edward G. Rendell on July 8, 2008: Act 56 of 2008, House Bill 2179 (P.N. 4020), the new consolidated mortgage licensing bill (the “Mortgage Act”), Act 57 of 2008, Senate Bill 483 (P.N. 2163), which amends the Loan Interest and Protection Law (the “LIPL”), and Act 58 of 2008, Senate Bill 484 (P.N. 2251), which amends the Department of Banking Code (the “DOB Code”).

Nontraditional Mortgage Guidance (PDF)
To help protect borrowers and promote sound business practices, the Department of Banking has issued guidance to Pennsylvania mortgage companies who offer so-called “nontraditional” loans such as interest-only and payment option adjustable-rate mortgages.

Proper Conduct for Licensees under the MBBCEPA (PDF)
The Secretary’s Letter announces the December 16, 2006 publication in the Pennsylvania Bulletin of a Statement of Policy which defines dishonest, fraudulent, illegal, unfair, unethical, negligent and incompetent conduct under Sections 313(a)(5) and (14) of the MBBCEPA.

Improperly Influenced Appraisals (PDF)
The Secretary's Letter informs all lenders and brokers under the jurisdiction of the Department of the Department's concerns related to the use of improperly influenced appraisals.  Letter also addresses "builder exception" under the Mortgage Bankers and Brokers and Consumer Equity Protection Act.

Act 55 of 2001 Definition of Covered Loan Changes Effective October 1, 2002 (PDF)
The Secretary's Letter discusses that the Act 55 of 2001 definition of "Covered Loan" changes effective October 1, 2002; and that “Median Family Income” statistical estimates necessary for lenders to calculate (a) repayment ability of potential obligor under Section 512(b), and (b) whether negative amortization terms may be imposed on a potential obligor under Section 511(c), are now stated in the convenient chart attached to the letter.

Blocking Property and Prohibiting Transactions (PDF)
Secretary's Letter regarding President Bush's Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism.

Act 55 of 2001, the Mortgage Bankers and Consumer Equity Protection Act (PDF)
Secretary's Letter to announce Act 55 of 2001, the Mortgage Bankers and Consumer Equity Protection Act.  A summary of Act 55 is attached to the Secretary's letter.

Department's General Position on Internet Banking (PDF)

Year 2000 Problems (PDF)
Secretary's Letter regarding the consideration and correction of potential Year 2000 problems.

Independent Contractors/Nonemployees Require Separate License Under Mortgage Bankers and Brokers Act (PDF)
Secretary's Letter states licensing requirements for independent contractors/nonemployees to conduct mortgage business under the MBBA.