2010 Pennsylvania Code
Title 7 - BANKS AND BANKING
Chapter 61 - Mortgage Loan Industry Licensing and Consumer Protection
6112 - Exceptions to license requirements.

     § 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.
            (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:
                (i)  A mortgage broker.
                (ii)  A mortgage lender.
                (iii)  A mortgage loan correspondent.
                (iv)  A person excepted from licensure under this
            section.
                (v)  A mortgage originator.
                (vi)  An agent of a person listed in subparagraphs
            (i), (ii), (iii), (iv) and (v).
            (3)  A person who offers or negotiates terms of a
        mortgage loan with or on behalf of or makes a mortgage loan
        to a member of the person's immediate family.
            (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. To qualify for the exception under this
        paragraph, the agency or instrumentality must:
                (i)  in the same manner as a mortgage lender, obtain
            and maintain bond coverage for mortgage originators
            consistent with section 6131(c)(5) (relating to
            application for license) and file an annual report
            consistent with section 6135(a)(3) (relating to licensee
            requirements); or
                (ii)  annually, in a form acceptable to the
            department, demonstrate to the department that all of the
            mortgage originators employed by the agency or
            instrumentality have obtained and maintained the bond
            coverage required by section 6131(f)(4).
            (5)  Any agency or instrumentality of a state or local
        government, the District of Columbia or any territory of the
        United States, including the Pennsylvania Housing Finance
        Agency and other government housing finance agencies. To
        qualify for the exception under this paragraph, the agency or
        instrumentality must:
                (i)  in the same manner as a mortgage lender, obtain
            and maintain bond coverage for mortgage originators
            consistent with section 6131(c)(5) and file an annual
            report consistent with section 6135(a)(3); or
                (ii)  annually, in a form acceptable to the
            department, demonstrate to the department that all of the
            mortgage originators employed by the agency or
            instrumentality have obtained and maintained the bond
            coverage required by section 6131(f)(4).
            (6)  Consumer discount companies, except that a consumer
        discount company that acts as a mortgage broker, mortgage
        lender or mortgage loan correspondent other than under the
        provisions of the act of April 8, 1937 (P.L.262, No.66),
        known as the Consumer Discount Company Act, 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 of
        licensees under 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 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 Subchapter C and
            sections 6135(a)(2), (3) and (4), (b) and (c), 6138 and
            6140(b);
                (ii)  deliver as required to the department annually
            copies of financial reports made to all supervisory
            agencies;
                (iii)  be registered with the department; and
                (iv)  with the exception of subsidiaries of federally
            chartered or State-chartered credit unions, in the same
            manner as a mortgage lender, obtain and maintain bond
            coverage for mortgage originators consistent with section
            6131(c)(5).
            (8)  Employees of a mortgage broker, mortgage lender or
        mortgage loan correspondent, or a person excepted from
        licensure under this section, who:
                (i)  engage solely in loan processor or underwriter
            activities, and do not represent to the public, through
            advertising or other means of communicating or providing
            information, including the use of business cards,
            stationery, brochures, signs, rate lists or other
            promotional items, that they can or will perform any of
            the activities of a mortgage originator; or
                (ii)  are not otherwise required to be licensed as
            mortgage originators.
            (9)  Registered mortgage loan originators when acting on
        behalf of their employers.
            (10)  (Deleted by amendment).
            (11)  Nonprofit corporations not otherwise engaged in or
        holding themselves out to the public as being engaged in the
        mortgage loan business making mortgage loans to promote home
        ownership or improvements for the disadvantaged. To qualify
        for the exception under this paragraph, the nonprofit
        corporation must:
                (i)  in the same manner as a mortgage lender, obtain
            and maintain bond coverage for mortgage originators
            consistent with section 6131(c)(5) and file an annual
            report consistent with section 6135(a)(3); or
                (ii)  annually, in a form acceptable to the
            department, demonstrate to the department that all of the
            mortgage originators employed by the nonprofit
            corporation have obtained and maintained the bond
            coverage required by section 6131(f)(4).
            (12)  A nonprofit corporation not otherwise engaged in or
        holding itself out to the public as being engaged in the
        mortgage loan business which meets all of the following
        subparagraphs:
                (i)  Does not make more than 12 mortgage loans in a
            calendar year with its own funds, not including funds
            borrowed through warehouse lines of credit or other
            sources for the purpose of making mortgage loans.
                (ii)  Makes mortgage loans which are retained in the
            corporation's own portfolios and not regularly sold to
            others and are made to promote and advance the cultural
            traditions and lifestyles of bona fide religious
            organizations.
                (iii)  Does either of the following:
                    (A)  In the same manner as a mortgage lender,
                obtains and maintains bond coverage for mortgage
                originators consistent with section 6131(c)(5) and
                files an annual report consistent with section
                6135(a)(3).
                    (B)  Annually, in a form acceptable to the
                department, demonstrates to the department that all
                of the mortgage originators employed by the nonprofit
                corporation have obtained and maintained the bond
                coverage required by section 6131(f)(4).
     (Aug. 5, 2009, P.L.117, No.31, eff. imd.)

        2009 Amendment.  Act 31 amended pars. (2), (3), (4), (5),
     (6), (7), (8), (9), (11) and (12) and deleted par. (10).
        Cross References.  Section 6112 is referred to in sections
     6102, 6111, 6131 of this title.