2010 Pennsylvania Code
Title 7 - BANKS AND BANKING
Chapter 61 - Mortgage Loan Industry Licensing and Consumer Protection
6133 - Issuance of license.

     § 6133.  Issuance of license.
        (a)  Time limit.--Within 60 days after a completed
     application is received, the department shall either issue a
     license or, for any reason which the department may refuse to
     issue a license under this section or for which the department
     may suspend, revoke or refuse to renew a license under section
     6139 (relating to suspension, revocation or refusal), refuse to
     issue a license. The 60-day time limit specified in this
     subsection may be extended by the department for an additional
     30 days if the department determines that the extension is
     necessary. The department shall provide written notification to
     any applicant whose application review has been extended and
     include the final date by which a decision shall be rendered
     regarding the application.
        (a.1)  Investigations.--Upon receipt of an application for a
     license, the department may conduct an investigation of the
     applicant or a director, officer, partner, employee, agent or
     ultimate equitable owner of 10% or more of the applicant as it
     deems necessary.
        (b)  Appeal of denial.--If the department refuses to issue a
     license, it shall notify the applicant in writing of the denial,
     the reason for the denial and the applicant's right to appeal
     the denial to the Secretary of Banking. An appeal from the
     department's refusal to approve an application for a license
     must be filed by the applicant within 30 days of notice of
     refusal.
        (c)  Contents of license.--Each license issued by the
     department shall specify:
            (1)  The name and address of the licensee and the address
        or addresses covered by the license.
            (2)  The licensee's reference number or unique
        identifier.
            (3)  Any other information the department shall require
        to carry out the purposes of this chapter.
        (d)  Denial of license due to conviction.--
            (1)  The department may deny a license if it finds that
        the applicant or a director, officer, partner, employee,
        agent or ultimate equitable owner of 10% or more of the
        applicant has been convicted of a crime of moral turpitude or
        felony in any jurisdiction or of a crime which, if committed
        in this Commonwealth, would constitute a crime of moral
        turpitude or felony. The department shall deny a mortgage
        originator license if the applicant has been convicted of any
        felony during the seven-year period preceding the date of the
        license application or at any time preceding the date of
        application, if the felony involved an act of fraud,
        dishonesty, breach of trust or money laundering, unless the
        applicant has been pardoned for the conviction. For the
        purposes of this subsection, a person shall be deemed to have
        been convicted of a crime if the person:
                (i)  pleads guilty or nolo contendere to a criminal
            charge before a domestic, foreign or military court or
            Federal magistrate; or
                (ii)  is found guilty by the decision or judgment of
            a domestic, foreign or military court or Federal
            magistrate or by the verdict of a jury, irrespective of
            the pronouncement of sentence or the suspension thereof,
            unless the plea of guilty or nolo contendere or the
            decision, judgment or verdict is set aside, vacated,
            reversed or otherwise abrogated by lawful judicial
            process.
            (2)  A license under this chapter shall be deemed to be a
        covered license within the meaning of section 405 of the act
        of May 15, 1933 (P.L.565, No.111), known as the Department of
        Banking Code. The department shall notify a licensee if a
        covered individual within the meaning of section 405 of the
        Department of Banking Code that is or will be employed or
        contracted by the licensee has a criminal background that
        renders the employee unfit for employment in the mortgage
        loan business.
        (e)  Denial of license for other reason.--The department may
     deny a license or otherwise restrict a license if it finds that
     the applicant or a director, officer, partner, employee, agent
     or ultimate equitable owner of 10% or more of the applicant:
            (1)  has had a license application or license issued by
        the department or another State licensing agency or by a
        Federal regulatory agency denied, not renewed, suspended or
        revoked;
            (2)  is the subject of an order of the department;
            (3)  has violated or failed to comply with any provision
        of this chapter or any regulation, statement of policy or
        order of the department;
            (4)  has an outstanding debt to the Commonwealth or a
        Commonwealth agency; or
            (5)  does not possess the financial responsibility,
        character, reputation, integrity and general fitness to
        command the confidence of the public and to warrant the
        belief that the mortgage loan business will be operated
        lawfully, honestly, fairly and within the legislative intent
        of this chapter and in accordance with the general laws of
        this Commonwealth. For the purposes of this paragraph, an
        applicant is not financially responsible if the applicant has
        shown a disregard in the management of his or her own
        financial condition. The factors that the department may
        consider in making a determination regarding an applicant's
        financial responsibility shall include:
                (i)  Current outstanding judgments, other than
            judgments solely as a result of medical expenses.
                (ii)  Current outstanding tax liens or other
            government liens and filings.
                (iii)  Foreclosures within the past three years.
                (iv)  A pattern of seriously delinquent accounts
            within the past three years.
        (e.1)  Mandatory denial of mortgage originator license.--The
     department shall deny a mortgage originator license if it finds
     that any of the following paragraphs apply:
            (1)  The applicant has had a license issued by the
        department or another State licensing agency or a Federal
        regulatory agency revoked. If the revocation is formally
        vacated, this paragraph does not apply.
            (2)  The applicant does not possess the financial
        responsibility, character, reputation, integrity and general
        fitness to command the confidence of the public and to
        warrant the belief that the mortgage loan business will be
        operated lawfully, honestly, fairly and within the
        legislative intent of this chapter and in accordance with the
        general laws of this Commonwealth. For the purposes of this
        paragraph, an applicant is not financially responsible if the
        applicant has shown a disregard in the management of his or
        her own financial condition. The factors that the department
        may consider in making a determination regarding an
        applicant's financial responsibility include:
                (i)  Current outstanding judgments, other than
            judgments solely as a result of medical expenses.
                (ii)  Current outstanding tax liens or other
            government liens and filings.
                (iii)  Foreclosures within the past three years.
                (iv)  A pattern of seriously delinquent accounts
            within the past three years.
        (f)  Conditional licenses.--The department may impose
     conditions on the issuance of any license under this chapter. If
     the department determines that conditions imposed upon a
     licensee have not been fulfilled, the department may take any
     action authorized under this chapter against the licensee that
     the department deems necessary. In the case of mortgage
     originator applicants, the department may issue mortgage
     originator licenses effective immediately upon receipt of an
     application, which licenses shall be conditional licenses issued
     under this subsection.
     (Aug. 5, 2009, P.L.117, No.31, eff. imd.)

        2009 Amendment.  Act 31 amended subsecs. (c)(1) and (2),
     (d)(1) and (e)(1), (4) and (5) and added subsec. (e.1).