2010 Pennsylvania Code
Title 7 - BANKS AND BANKING
Chapter 61 - Mortgage Loan Industry Licensing and Consumer Protection
6121 - General requirements.

                               SUBCHAPTER C
           MORTGAGE LOAN BUSINESS RESTRICTIONS AND REQUIREMENTS

     Sec.
     6121.  General requirements.
     6122.  Powers conferred on certain licensees engaged in the
            mortgage loan business.
     6123.  Mortgage loan business prohibitions.
     6124.  Prohibited clauses in mortgage loan documents.
     6125.  Mortgage lending authority.
     6126.  Requirements as to open-end loans.

        Cross References.  Subchapter C is referred to in section
     6112 of this title.
     § 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), 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.).
            (2)  Comply with the provisions of the act of December 3,
        1959 (P.L.1688, No.621), known as the Housing Finance Agency
        Law, that are applicable to the licensee.
            (3)  Comply with all applicable Federal law, including
        the Real Estate Settlement Procedures Act (88 Stat. 1724, 12
        U.S.C. §§ 2601 et seq.), the Truth in Lending Act (82 Stat.
        146, 15 U.S.C. §§ 1601 et seq.) and the Equal Credit
        Opportunity Act (88 Stat. 1521, 15 U.S.C. §§ 1691 et seq.).
            (4)  Give to the consumer a copy of the promissory note
        evidencing the mortgage loan and any mortgage loan agreement,
        mortgage instrument or other document evidencing a mortgage
        loan signed by the consumer.
            (5)  Give to the consumer written evidence of credit
        life, credit accident and health, credit unemployment and
        property insurance, if any, provided by the licensee to the
        consumer.
            (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.
            (8)  If a mortgage loan is paid in full and, in the case
        of an open-end loan, the mortgage lender is no longer
        obligated to make future advances to the consumer, the
        mortgage lender shall do all of the following:
                (i)  Cancel any insurance provided by the licensee in
            connection with the mortgage loan and refund to the
            consumer, in accordance with regulations promulgated by
            the Insurance Department, any unearned portion of the
            premium for the insurance.
                (ii)  Stamp or write on the face of the mortgage loan
            agreement or promissory note evidencing the mortgage loan
            "Paid in Full" or "Canceled," the date paid and, within
            60 days, return the mortgage loan agreement or promissory
            note to the consumer.
                (iii)  Release any lien on real property 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.
            (9)  Provide for periodic accounting of any escrow
        accounts held by the mortgage lender to the consumer not less
        than annually, showing the amounts received from the consumer
        and the amounts disbursed from the accounts.
            (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, mortgage lender or mortgage loan
        correspondent 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.
            (11)  Ensure that all lock-in agreements shall be in
        writing and shall contain at least the following provisions:
                (i)  The expiration date of the lock-in, if any.
                (ii)  The interest rate locked in, if any.
                (iii)  The discount points locked in, if any.
                (iv)  The fee locked in, if any.
                (v)  The lock-in fee, if any.
            (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.
            (13) In the case of a mortgage broker, mortgage lender or
        mortgage loan correspondent, do all of the following:
                (i)  Maintain supervision and control of and
            responsibility for the acts and omissions of all mortgage
            originators employed by the licensee.
                (ii)  Maintain a list of all current and former
            mortgage originators employed by the licensee and the
            dates of the employment.
                (iii)  In the event that a licensee believes that a
            mortgage originator employed 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.
            (14)  In the case of a mortgage originator, clearly
        display the mortgage originator's unique identifier on all
        mortgage loan application forms and personal solicitations or
        advertisements, including business cards.
     (Aug. 5, 2009, P.L.117, No.31, eff. imd.)

        2009 Amendment.  Act 31 added par. (14).