2010 Pennsylvania Code
Title 7 - BANKS AND BANKING
Chapter 61 - Mortgage Loan Industry Licensing and Consumer Protection
6123 - Mortgage loan business prohibitions.

     § 6123.  Mortgage loan business prohibitions.
        A licensee engaging in the mortgage loan business shall not:
            (1)  Charge, contract for, collect or receive charges,
        fees, premiums, commissions or other considerations in excess
        of the limitations of those contained in this chapter.
            (2)  Disburse the proceeds of a mortgage loan in any form
        other than cash, electronic funds transfer, certified check
        or cashier's check where the proceeds are disbursed by the
        licensee to a closing agent. This paragraph shall not be
        construed as requiring a lender to utilize a closing agent
        and shall not apply to disbursements by check directly from
        the licensee's account payable to the consumer, consumer
        designees or other parties due funds from the closing.
            (3)  Advertise, cause to be advertised or otherwise
        solicit whether orally, in writing, by telecast, by broadcast
        or in any other manner any statement or representation which
        is false, misleading or deceptive.
            (4)  Require a consumer to pay, to the licensee or any
        other person, a broker's fee, finder's fee, commission,
        premium or any other charges for obtaining, procuring or
        placing of a mortgage loan, except as provided under this
        chapter. This restriction shall not prohibit a mortgage
        lender from paying a fee to a mortgage broker in connection
        with the placement or procurement of a mortgage loan nor
        prohibit a consumer from requesting or directing a mortgage
        lender licensee to pay a fee from the proceeds of a mortgage
        loan or include it in the amount to be financed.
            (5)  Make any mortgage loan on the condition, agreement
        or understanding that the consumer contract with any specific
        person or organization for insurance services as agent,
        broker or underwriter.
            (6)  In the case of a mortgage loan correspondent,
        service mortgage loans or close mortgage loans utilizing
        funding other than a wholesale table funder, except in an
        emergency circumstance where wholesale table funding is not
        available.
            (7)  In the case of a mortgage broker or mortgage
        originator, commit to close or close mortgage loans in its
        own name, service mortgage loans, enter into lock-in
        agreements or collect lock-in fees or be or designate the
        exclusive recipient of notices or other communications sent
        from a lender or servicer to a consumer, provided, however,
        that a mortgage broker or mortgage originator can provide a
        lender's lock-in agreement to a consumer on behalf of that
        lender and collect lock-in fees payable to that lender on the
        lender's behalf.
            (8)  In the case of a mortgage originator, accept any
        fees from consumers in the mortgage originator's own name. A
        mortgage originator may accept fees payable to the mortgage
        originator's employer licensee and fees payable to third-
        party entities on behalf of the mortgage originator's
        employer licensee. A mortgage originator may not accept
        advance fees payable to the mortgage originator's employer
        licensee unless the licensee is authorized to collect advance
        fees under this chapter.
     (June 29, 2009, P.L.51, No.10, eff. 60 days)

        2009 Amendment.  Act 10 amended par. (7).
        Cross References.  Section 6123 is referred to in section
     6102 of this title.