2010 Pennsylvania Code
Title 7 - BANKS AND BANKING
Chapter 61 - Mortgage Loan Industry Licensing and Consumer Protection
6122 - Powers conferred on certain licensees engaged in the mortgage loan business.

     § 6122.  Powers conferred on certain licensees engaged in the
                mortgage loan business.
        (a)  Mortgage lenders.--If they are in compliance with the
     provisions of this chapter, mortgage lenders shall have the
     power and authority:
            (1)  To make first and secondary mortgage loans and,
        subject to the limitations of this chapter, to charge and
        collect interest, origination fees and delinquency charges
        for the loans.
            (2)  To collect fees or premiums for title examination,
        abstract of title, title insurance, credit reports, surveys,
        appraisals, notaries, postage, including messenger and
        express carrier, tax service or other costs or fees actually
        related to the processing of a mortgage loan application or
        making of a mortgage loan, when the fees are actually paid or
        incurred by the licensee and to collect fees or charges
        prescribed by law which actually are or will be paid to
        public officials for determining the existence of or for
        perfecting or releasing or satisfying any security related to
        the mortgage loan and include these in the principal of the
        mortgage loan.
            (3)  To provide access to credit life, credit disability,
        credit accident and health and credit unemployment insurance.
        A consumer shall not be compelled to purchase credit life,
        credit disability, credit accident and health or credit
        unemployment insurance as a condition of the making of a
        mortgage loan, and all contracts utilized shall reflect a
        clear disclosure that the purchase of credit life, credit
        disability, credit accident and health or credit unemployment
        insurance is not a prerequisite to obtaining a mortgage loan.
        If, however, the consumer elects to obtain credit life,
        credit disability, credit accident and health or credit
        unemployment insurance through the licensee, the consumer
        shall consent thereto in writing. If consumers desire joint-
        life or joint accident and health insurance, all consumers
        shall consent thereto in writing. The insurance shall be
        obtained from an insurance company authorized by the laws of
        this Commonwealth to conduct business in this Commonwealth.
        Any benefit or return to the licensee from the sale or
        provision of the insurance shall not be included in the
        computation of the maximum charge authorized for mortgage
        loans under this chapter and shall not be deemed a violation
        of this chapter when the insurance is written pursuant to the
        laws of this Commonwealth governing insurance.
            (4)  To require property insurance on security against
        reasonable risks of loss, damage and destruction and to
        provide access to the insurance to the consumer. The amount
        and term of the insurance shall be reasonable in relation to
        the amount and term of the mortgage loan contract and the
        value of the security. This requirement shall be satisfied if
        the consumer demonstrates at the time the mortgage loan is
        made that the consumer has valid and collectible insurance
        covering the property to be insured and has furnished the
        licensee with a loss payable endorsement sufficient for the
        protection of the licensee. If the consumer elects to obtain
        property insurance through the licensee, the consumer shall
        consent thereto in writing, and the insurance shall be
        obtained from an insurance company authorized by the laws of
        this Commonwealth to conduct business in this Commonwealth.
        Any benefit or return to the licensee from the sale or
        provision of property insurance shall not be included in the
        computation of the maximum charge authorized for mortgage
        loans under this chapter and shall not be deemed a violation
        of this chapter when the insurance is written pursuant to the
        laws of this Commonwealth governing insurance. The premium
        for any property insurance may be included in the principal
        amount of the mortgage loan requested by the consumer.
        However, the premium shall be disclosed as a separate item on
        the face of the principal contract document and the
        licensee's individual consumer ledger records.
            (5)  To collect a fee for a subsequent dishonored check
        or instrument taken in payment, not to exceed the service
        charge permitted to be imposed under 18 Pa.C.S. § 4105
        (relating to bad checks).
            (6)  To collect reasonable attorney fees of an attorney
        at law upon the execution of the mortgage loan if the fees:
                (i)  represent actual fees charged the licensee in
            connection with the mortgage loan; and
                (ii)  are evidenced by a statement for services
            rendered addressed to the licensee; and
                (iii)  are included in the principal of the mortgage
            loan.
            (7)  To collect reasonable attorney fees of an attorney
        at law in the collection of a delinquent mortgage loan and to
        collect court costs incurred in the collection of the
        mortgage loan.
        (b)  Mortgage brokers and loan correspondents.--Provided they
     are in compliance with the provisions of this chapter, mortgage
     brokers and mortgage loan correspondents shall have the power
     and authority:
            (1)  To collect title examination, credit report and
        appraisal fees actually related to the making of a mortgage
        loan when the fees are actually paid or incurred by the
        licensee and to include the fees in the principal of the
        mortgage loan which is being negotiated or arranged.
            (2)  To charge a broker's fee if the fee is disclosed to
        the consumer for whom the loan is being negotiated or
        arranged.
            (3)  To accept from a licensee a fee or premium for
        brokering or cobrokering a mortgage loan, provided that the
        payment and acceptance of the fee or premium is in compliance
        with Federal law, including the Real Estate Settlement
        Procedures Act of 1974 (Public Law 93-533, 88 Stat. 1724).
     (Aug. 5, 2009, P.L.117, No.31, eff. imd.)

        2009 Amendment.  Act 31 amended subsec. (a)(1) and added
     subsec. (a)(6) and (7).