2010 Pennsylvania Code
Title 7 - BANKS AND BANKING
Chapter 61 - Mortgage Loan Industry Licensing and Consumer Protection
6125 - Mortgage lending authority.

     § 6125.  Mortgage lending authority.
        (a)  First mortgage loans.--Mortgage lenders engaged in the
     first mortgage loan business may make first mortgage loans
     pursuant to:
            (1)  the act of January 30, 1974 (P.L.13, No.6), referred
        to as the Loan Interest and Protection Law; or
            (2)  if the licensee is qualified, applicable Federal
        law, including the Alternative Mortgage Transaction Parity
        Act of 1982 (96 Stat. 1545, 12 U.S.C. § 3801 et seq.) and
        section 501 of the Depository Institution Deregulation and
        Monetary Control Act of 1980 (94 Stat. 161, 12 U.S.C. §
        1735f-7a).
        (b)  Secondary mortgage loans.--Mortgage lenders engaged in
     the secondary mortgage loan business may:
            (1)  if the licensee is qualified, make secondary
        mortgage loans on terms as are permissible under applicable
        Federal law, including the Alternative Mortgage Transaction
        Parity Act of 1982; or
            (2)  (i)  make secondary mortgage loans repayable in
            installments and charge, contract for and receive thereon
            interest at a rate not exceeding 1.85% per month. No
            interest shall be paid, deducted or received in advance,
            except that interest from the date of disbursement of
            funds to the consumer to the first day of the following
            month shall be permitted in the event the first
            installment payment is more than 30 days after the date
            of disbursement. Interest shall not be compounded and
            shall be computed only on unpaid principal balances.
            However, the inclusion of earned interest in a new note
            shall not be considered compounding. For the purpose of
            computing interest, a month shall be any period of 30
            consecutive days;
                (ii)  charge and collect an origination fee not
            exceeding 3% of the original principal amount of the
            secondary mortgage loan. The fee shall be fully earned at
            the time the secondary mortgage loan is made and may be
            added to the principal amount of the secondary mortgage
            loan. No origination fee may be collected on subsequent
            advances made pursuant to an open-end loan if the full
            fee of 3% of the credit limit was collected at the time
            the open-end loan was made; and
                (iii)  charge and collect a delinquency charge of $20
            or 10% of each payment, whichever is greater, for a
            payment which is more than 15 days late.
     (Aug. 5, 2009, P.L.117, No.31, eff. imd.)

        2009 Amendment.  Act 31 amended subsec. (b)(2)(ii).