2010 Pennsylvania Code
Title 7 - BANKS AND BANKING
Chapter 61 - Mortgage Loan Industry Licensing and Consumer Protection
6102 - Definitions.

     § 6102.  Definitions.
        The following words and phrases when used in this chapter
     shall have the meanings given to them in this section unless the
     context clearly indicates otherwise:
        "Advance fee."  Any funds requested by or to be paid to a
     person in advance of or during the processing of a mortgage loan
     application, excluding those fees paid by a consumer directly to
     a credit agency reporting bureau, title company or real estate
     appraiser.
        "Applicant."  A person who applies for a license under this
     chapter.
        "Banking institution."  Any of the following:
            (1)  A State-chartered bank, bank and trust company,
        savings bank or private bank.
            (2)  A national bank.
            (3)  A federally chartered or State-chartered savings
        association.
            (4)  A subsidiary of any of the entities listed under
        this definition.
        "Billing cycle."  In respect to open-end mortgage loans, the
     time interval between periodic billing dates. A billing cycle
     shall be considered to be a monthly cycle if the closing date of
     the cycle is the same date each month or does not vary by more
     than four days from that date.
        "Branch."  An office or other place of business, other than
     the principal place of business, where a person engages in the
     mortgage loan business subject to this chapter.
        "Clerical or support duties."  Any of the following:
            (1)  The receipt, collection, distribution and analysis
        of information common for the processing or underwriting of a
        mortgage loan.
            (2)  Communicating with a consumer to obtain the
        information necessary for the processing or underwriting of a
        mortgage loan, to the extent that the communication does not
        include:
                (i)  offering or negotiating mortgage loan rates or
            terms; or
                (ii)  counseling consumers about mortgage loan rates
            or terms.
        "Consumer discount company."  A licensee under the act of
     April 8, 1937 (P.L.262, No.66), known as the Consumer Discount
     Company Act.
        "Department."  The Department of Banking of the Commonwealth.
        "Dwelling."  As defined in section 103(v) of the Truth in
     Lending Act (Public Law 90-321, 15 U.S.C. § 1602(v)).
        "Federal banking agency."  Any of the following:
            (1)  The Board of Governors of the Federal Reserve
        System.
            (2)  The Office of the Comptroller of the Currency.
            (3)  The Office of Thrift Supervision.
            (4)  The National Credit Union Administration.
            (5)  The Federal Deposit Insurance Corporation.
        "Finder's fee."  Any payment of money or other consideration
     for the referral of a mortgage loan to a licensee, except for
     consideration paid for goods or facilities actually furnished or
     services actually performed.
        "First mortgage loan."  A loan which is:
            (1)  made primarily for personal, family or household
        use; and
            (2)  secured by any first lien mortgage, deed of trust or
        equivalent consensual security interest on a dwelling or on
        residential real estate.
        "First mortgage loan business."  The mortgage loan business
     as applied to first mortgage loans.
        "Immediate family."  A parent, spouse, child, brother or
     sister.
        "Licensee."  A person who is licensed under this chapter.
        "Loan processor or underwriter."  An individual who performs
     clerical or support duties as an employee at the direction of
     and subject to the supervision and instruction of a person
     licensed or exempt from licensing under this chapter.
        "Lock-in agreement."  An agreement between a mortgage lender
     and a consumer whereby the mortgage lender guarantees, until a
     specified date, the availability of a specified rate of interest
     or specified formula by which the rate of interest and a
     specific number of discount points will be determined, if the
     mortgage loan is approved and closed by the specified date. If a
     specified date is not determinable, the mortgage lender may
     fulfill the requirement of this definition by setting forth with
     specificity the method by which the duration of the lock-in
     period will be determined.
        "Mortgage broker."  A person who engages in the mortgage loan
     business by directly or indirectly negotiating or placing
     mortgage loans for others in the primary market for
     consideration.
        "Mortgage lender."  A person who engages in the mortgage loan
     business by directly or indirectly originating and closing
     mortgage loans with its own funds in the primary market for
     consideration.
        "Mortgage loan."  A first or secondary mortgage loan, or
     both, as the context may require.
        "Mortgage loan business."  The business of advertising,
     causing to be advertised, soliciting, negotiating or arranging
     in the ordinary course of business or offering to make or making
     mortgage loans.
        "Mortgage loan correspondent."  A person who engages in the
     mortgage loan business by directly or indirectly originating and
     closing mortgage loans in his or her own name utilizing funds
     provided by a wholesale table funder or other funding sources
     under the circumstances described under section 6123(6)
     (relating to mortgage loan business prohibitions) and
     simultaneously assigning the mortgage loans to the wholesale
     table funder.
        "Mortgage originator."
            (1)  An individual who takes a mortgage loan application
        or offers or negotiates terms of a mortgage loan for
        compensation or gain.
            (2)  The term does not include any of the following:
                (i)  An individual engaged solely as a loan processor
            or underwriter consistent with section 6112(8) (relating
            to exceptions to license requirements).
                (ii)  A person or entity solely involved in
            extensions of credit relating to timeshare plans. As used
            in this paragraph, the term "timeshare plan" has the
            meaning given in 11 U.S.C. § 101(53D) (relating to
            definitions).
            (3)  Except as set forth in paragraph (4), the term does
        not include an employee of a licensee or person exempt or
        excepted from licensure under this chapter who solely
        renegotiates terms for existing mortgage loans held or
        serviced by that licensee or person and who does not
        otherwise act as a mortgage originator.
            (4)  The exclusion under paragraph (3) shall not apply if
        the United States Department of Housing and Urban Development
        or a court of competent jurisdiction determines that the
        S.A.F.E. Mortgage Licensing Act of 2008 (110 Stat. 289, 12
        U.S.C. § 5101 et seq.) requires such an employee to be
        licensed as a mortgage originator under state laws
        implementing the S.A.F.E. Mortgage Licensing Act of 2008.
        This paragraph is subject to section 6154 (relating to
        procedure for determination of noncompliance with Federal
        law).
        "Nationwide Mortgage Licensing System and Registry."  The
     licensing system developed and maintained by the Conference of
     State Bank Supervisors and the American Association of
     Residential Mortgage Regulators.
        "Net worth."  Assets less liabilities and assets unacceptable
     to the United States Department of Housing and Urban Development
     for purposes of complying with 24 CFR § 202.5(n) (relating to
     general approval standards) or 202.8(b)(1) (relating to loan
     correspondent lenders and mortgagees), as applicable.
        "Nontraditional mortgage loan."  A mortgage loan other than a
     30-year fixed rate mortgage loan.
        "Open-end loan."  A mortgage loan made by a mortgage lender
     under this chapter pursuant to an agreement between the mortgage
     lender and the consumer whereby all of the following apply:
            (1)  The mortgage lender may permit the consumer to
        obtain advances of money from the licensee from time to time
        or the mortgage lender may advance money on behalf of the
        consumer from time to time as directed by the consumer.
            (2)  The amount of each advance, interest and permitted
        charges and costs are debited to the consumer's account and
        payments and other credits are credited to the same account.
            (3)  Interest is computed on the unpaid principal balance
        or balances of the account outstanding from time to time.
            (4)  The consumer has the privilege of paying the account
        in full at any time or, if the account is not in default, in
        monthly installments of fixed or determinable amounts as
        provided in the open-end loan agreement.
        "Person."  An individual, association, joint venture or
     joint-stock company, partnership, limited partnership, limited
     partnership association, limited liability company, business
     corporation, nonprofit corporation or any other group of
     individuals, however organized.
        "Primary market."  The market wherein mortgage loans are
     originated between a lender and a consumer.
        "Principal place of business."  The primary office of a
     person which is staffed on a full-time basis and at which the
     person's books, records, accounts and documents are maintained.
        "Registered mortgage loan originator."  An individual who
     complies with all of the following paragraphs:
            (1)  Meets the definition of mortgage originator and is
        an employee of:
                (i)  a banking institution or federally chartered or
            State-chartered credit union;
                (ii)  a subsidiary owned and controlled by a
            federally chartered or State-chartered credit union and
            supervised by a Federal banking agency; or
                (iii)  an institution regulated by the Farm Credit
            Administration.
            (2)  Is registered with and maintains a unique identifier
        through the Nationwide Mortgage Licensing System and
        Registry.
        "Residential real estate."  Real property upon which is
     constructed or intended to be constructed a dwelling.
        "Secondary mortgage loan."  A loan which is:
            (1)  made primarily for personal, family or household
        use; and
            (2)  secured by any secondary lien mortgage, deed of
        trust or equivalent consensual security interest on a
        dwelling or on residential real estate.
        "Secondary mortgage loan business."  The mortgage loan
     business as applied to secondary mortgage loans.
        "Service mortgage loan."  A collecting or remitting payment
     for another, or the right to collect or remit payments for
     another, of principal, interest, tax, insurance or other payment
     under a mortgage loan.
        "Tangible net worth."  (Deleted by amendment).
        "Unique identifier."  A number or other identifier assigned
     by the Nationwide Mortgage Licensing System and Registry.
        "Wholesale table funder."  A licensed mortgage lender or
     person exempt under section 6112(1) or (7) (relating to
     exceptions to license requirements) who, in the regular course
     of business, provides the funding for the closing of mortgage
     loans through mortgage loan correspondents and who by assignment
     obtains title to the mortgage loans.
     (Aug. 5, 2009, P.L.117, No.31, eff. imd.)

        2009 Amendment.  Act 31 amended the defs. of "branch,"
     "finder's fee" or "referral fee," "first mortgage loan,"
     "mortgage originator," "principal place of business" and
     "secondary mortgage loan," added the defs. of "clerical or
     support duties," "dwelling," "Federal banking agency,"
     "immediate family," "loan processor or underwriter," "Nationwide
     Mortgage Licensing System and Registry," "net worth,"
     "nontraditional mortgage loan," "registered mortgage loan
     originator," "residential real estate," "service mortgage loan"
     and "unique identifier" and deleted the def. of "tangible net
     worth."
        Cross References.  Section 6102 is referred to in section
     6154 of this title.