Pennsylvania Consolidated & Unconsolidated Statutes
Act 8 - BANKS AND BANKING (7 PA.C.S.) - OMNIBUS AMENDMENTS

Session of 2022
No. 2022-8
 
HB 1588
 
AN ACT
 
Amending Title 7 (Banks and Banking) of the Pennsylvania Consolidated Statutes, in
mortgage loan industry licensing and consumer protection, further providing for definitions,
for license requirements, for exceptions to license requirements, for general requirements,
for powers conferred on certain licensees engaged in the mortgage loan business, for
mortgage loan business prohibitions, for application for license, for prelicensing
and continuing education, for license fees, for licensee requirements, for suspension,
revocation or refusal and for mortgage servicers.

 
The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:
 
Section 1.  The definitions of "branch," "installment sales contract," "mortgage loan correspondent,"
"mortgage originator," "qualifying individual" and "wholesale table funder" in section
6102 of Title 7 of the Pennsylvania Consolidated Statutes are amended and the section
is amended by adding a definition to read:

§ 6102.  Definitions.
The following words and phrases when used in this chapter shall have the meanings
given to them in this section unless the context clearly indicates otherwise:

* * *
"Branch."  An office or other [place of business] location, other than the principal place of business, where a person engages in the mortgage
loan business subject to this chapter. The term does not include a [location where
the licensee-sponsored mortgage originator contacts consumers or processes mortgage
loans, provided that the location is not:

(1)  owned or controlled by a licensee. For purposes of this definition, a location is
not considered to be owned or controlled by a licensee if the location is under the
control of a subsidiary or affiliate of the licensee, is primarily used by the subsidiary
or affiliate and is only used by the licensee on an incidental basis for the convenience
of a consumer;

(2)  advertised or represented to consumers as an operating location of the mortgage originator
or the mortgage originator's sponsor; or

(3)  a place where records regarding the licensee's mortgage loan business are stored.]
remote location.
* * *
"Installment sales contract."  [As defined in section 3(10) of the act of June 28, 1947 (P.L.1110, No.476), known
as the Motor Vehicle Sales Finance Act.] The term shall have the same meaning as "installment sale contract" as defined in 12 Pa.C.S. § 6202 (relating to definitions).
* * *
["Mortgage loan correspondent."  A person who engages in the mortgage loan business by directly or indirectly originating
and closing mortgage loans in his or her own name utilizing funds provided by a wholesale
table funder or other funding sources under the circumstances described under section
6123(a)(6) (relating to mortgage loan business prohibitions) and simultaneously assigning
the mortgage loans to the wholesale table funder.]

* * *
"Mortgage originator."
(1)  An individual who, in a commercial context and habitually and repeatedly, does any
of the following:

(i)  Takes a mortgage loan application.
(ii)  Offers or negotiates terms of a mortgage loan for compensation or gain.
(iii)  Represents to the public, through advertising or other means of communicating or providing
information, including the use of business cards, stationery, brochures, signs, rate
lists or other promotional items, that the individual can or will perform the activities
described in subparagraphs (i) and (ii).

(2)  The term does not include any of the following:
(i)  An individual who is involved only in extensions of credit relating to timeshare plans,
as that term is defined in 11 U.S.C. § 101(53D) (relating to definitions).

(ii)  An individual who performs only clerical or support duties and meets any of the following
requirements:

(A)  Who does so at the direction of and subject to the supervision and instruction of
an individual who:

(I)  Is licensed and registered in accordance with this chapter.
(II)  Is not required to be licensed in accordance with section 6112(9) (relating to exceptions
to license requirements).

(B)  Who performs such duties solely with respect to transactions for which the individual
who acts as a mortgage originator is not required to be licensed, in accordance with
subparagraph (i), (v) or (vi).

(iii)  An individual who performs only purely administrative or clerical tasks on behalf
of a mortgage originator.

(iv)  An individual who is a registered mortgage loan originator.
(v)  An individual employed by an agency or instrumentality of the Federal Government or
a corporation otherwise created by an act of the Congress of the United States or
an agency or instrumentality of a state or local government, the District of Columbia
or any territory of the United States, including the Pennsylvania Housing Finance
Agency and other government housing finance agencies, who acts as a mortgage originator
within the scope of employment.

(vi)  An individual who is employed by a bona fide nonprofit organization who acts as a
mortgage originator within the scope of employment.

(vii)  An individual employed by a licensee or person exempt or excepted from licensure under
this chapter who solely engages in mortgage loan modifications for existing mortgage
loans held or serviced by that licensee or person and who does not otherwise act as
a mortgage originator.

(viii)  A loan processor or underwriter employed by a licensee or person exempt or excepted
from licensure under this chapter, provided that the loan processor or underwriter:

(A)  Is under the direct supervision and control of a licensed mortgage originator or registered
mortgage loan originator.

(B)  Acts as a loan processor or underwriter solely for the individual's employer.
(C)  Does not represent to the public, through advertising or other means of communicating
or providing information, including the use of business cards, stationery, brochures,
signs, rate lists or other promotional items, that the person can or will perform
any of the activities of a mortgage originator.

(ix)  An individual who is all of the following:
(A)  An employee of a broker-dealer registered under section 301 of the act of December
5, 1972 (P.L.1280, No.284), known as the Pennsylvania Securities Act of 1972.

(B)  Registered as a securities agent under section 301 of the Pennsylvania Securities
Act of 1972.

(C)  Engaged in recommending, referring or steering a borrower or prospective borrower
in the manner provided under paragraph (1)(iii) of the definition of "offer or negotiate
terms of a mortgage loan for compensation or gain" to a banking institution, licensed
mortgage lender, [licensed mortgage loan correspondent,] licensed mortgage broker
or person exempt from licensing in a manner incidental to and in the normal course
of his or her securities brokerage activities.

(D)  Not otherwise acting as a mortgage originator as defined in paragraph (1)(i), (ii)
or (iii).

(E)  Not in receipt of any compensation or gain for such activities from the person making
or brokering the loan, or a borrower or prospective borrower.

(x)  An individual who is all of the following:
(A)  An employee of an insurance agency licensed under the act of May 17, 1921 (P.L.789,
No.285), known as The Insurance Department Act of 1921.

(B)  Registered as an insurance agent or broker under The Insurance Department Act of 1921.
(C)  Engaged in recommending, referring or steering a borrower or prospective borrower
in the manner provided under paragraph (1)(iii) of the definition of "offer or negotiate
terms of a mortgage loan for compensation or gain" to a banking institution, licensed
mortgage lender, [licensed mortgage loan correspondent,] licensed mortgage broker
or person exempt from licensing in a manner incidental to and in the normal course
of his or her insurance activities.

(D)  Not otherwise acting as a mortgage originator as defined in paragraph (1)(i), (ii)
or (iii).

(E)  Not in receipt of any compensation or gain for such activities from the person making
or brokering the loan, or a borrower or prospective borrower.

* * *
"Qualifying individual."  An individual identified by a mortgage broker, mortgage lender[,] or mortgage servicer [or mortgage loan correspondent] in the Nationwide Mortgage Licensing
System and Registry who:

(1)  Is a mortgage originator or meets the licensing requirements of a mortgage originator.
(2)  Is a management-level officer assigned to the principal place of business of a mortgage
broker, mortgage lender[,] or mortgage servicer [or mortgage loan correspondent].

* * *
"Remote location."  A location, other than a licensee's principal place of business
or branch, where a mortgage originator sponsored by the licensee, a person excepted from this chapter or excepted from licensure under section 6112 or any other employee of the licensee, may engage in licensed activities on behalf
of the licensee under all of the following conditions:
(1)  The licensed activities are conducted under the supervision of the licensee.
(2)  The licensee has written policies and procedures for the supervision of personnel
working from the location.

(3)  Access to the licensee's platforms and customer information is conducted in accordance
with the licensee's comprehensive written information security plan.

(4)  In-person consumer interaction does not occur at the remote location.
(5)  Physical records regarding the licensee's mortgage loan business are maintained at
the location.

(6)  The location is not advertised or represented to consumers as an operating location
of the licensee or the licensee's employees who work at the location.

(7)  The location is not owned or controlled by the licensee. For the purposes of this
definition, a location shall not be considered owned or controlled by a licensee if
the location is under the control of a subsidiary or affiliate of the licensee, is
primarily used by the subsidiary or affiliate and is only used by the licensee on
an incidental basis for the convenience of consumers.

* * *
["Wholesale table funder."  A licensed mortgage lender or person exempt under section 6112(1) or (7) (relating
to exceptions to license requirements) who, in the regular course of business, provides
the funding for the closing of mortgage loans through mortgage loan correspondents
and who by assignment obtains title to the mortgage loans.]

Section 2.  Sections 6111(a) and (b)(1)(i) and (2), 6112(2)(iii), (6), (8), (11)(i) and (13),
6121(10), (11) and (13) introductory paragraph, 6122(b) heading and introductory paragraph,
6123(a)(6) and (9), 6131(a)(1) introductory paragraph, (d) and (f)(1), (2) and (5)
and 6131.1(b)(1) introductory paragraph, (c)(1) and (d)(1) introductory paragraph
and (8) of Title 7 are amended to read:

§ 6111.  License requirements.
(a)  General rule.--Except as provided under subsections (b) and (c) and section 6112 (relating
to exceptions to license requirements), on and after the effective date of this section,
no person shall engage in the mortgage loan business in this Commonwealth without
being licensed as a mortgage broker, mortgage lender, mortgage servicer [, mortgage
loan correspondent] or mortgage originator as provided under this chapter. A mortgage
originator may not engage in the mortgage loan business unless the mortgage originator
is sponsored in the Nationwide Mortgage Licensing System and Registry by a licensed
mortgage broker, mortgage lender, mortgage servicer or mortgage loan correspondent,
person excepted from this chapter or person excepted from licensure under section
6112 and is under the direct supervision and control of the sponsoring licensee or
excepted person.

(b)  Licensed activity exceptions.--
(1)  A mortgage lender may:
(i)  Act as a mortgage broker [or mortgage loan correspondent] without a separate mortgage
broker [or mortgage loan correspondent] license.

* * *
[(2)  A mortgage loan correspondent may act as a mortgage broker without a separate mortgage
broker license.]

* * *
§ 6112.  Exceptions to license requirements.
The following persons shall not be required to be licensed under this chapter in order
to conduct the mortgage loan business:

* * *
(2)  An attorney at law not otherwise engaged in or holding himself or herself out to the
public as being engaged in the mortgage loan business who acts as a mortgage broker
or a mortgage originator in negotiating or placing a mortgage loan in the normal course
of legal practice. The exception under this paragraph shall not apply if the attorney
is compensated by any of the following:

* * *
[(iii)  A mortgage loan correspondent.]
* * *
(6)  Consumer discount companies, except that a consumer discount company that acts as
a mortgage broker, mortgage lender[,] or mortgage servicer [or mortgage loan correspondent], shall be subject to the provisions
of Subchapter C (relating to mortgage loan business restrictions and requirements)
and sections 6131(c)(2), (3) and (5), 6135, 6138 (relating to authority of department)
and 6140(b) (relating to penalties). Employees or individuals under the direct supervision
and control of licensees under the act of April 8, 1937 (P.L.262, No.66), known as
the Consumer Discount Company Act, that act as mortgage originators shall be subject
to the licensing requirements of this chapter. Consumer discount companies that employ
or directly supervise and control mortgage originators shall be subject to the same
requirements as mortgage lenders in regard to the employment and supervision of mortgage
originators.

* * *
(8)  Employees or individuals under the direct supervision and control of a mortgage broker,
mortgage lender[,] or mortgage servicer [or mortgage loan correspondent], or a person excepted from licensure
under this section, who are not otherwise required to be licensed as mortgage originators.

* * *
(11)  A bona fide nonprofit organization and employees of the organization acting within
the scope of their employment, unless otherwise deemed to be engaged in the mortgage
loan business by the department, provided that:

(i)  The organization shall be subject to the provisions of Subchapter C and sections 6135(a)(2)[,
(3)] and (4) and (c), 6138 and 6140(b).

* * *
(13)  An installment seller of, or holder of installment sales contracts secured by, manufactured
homes who is licensed under 12 Pa.C.S. Ch. 62 (relating to motor vehicle sales finance)
or an employee of the licensed entity, provided the installment seller or holder only engages in the mortgage loan business
regarding installment sales contracts secured by manufactured homes that are purchase-money
mortgage loans. [To qualify for the exception under this paragraph, the installment
seller or holder must:

(i)  Obtain a license as a mortgage originator, if licensed as an individual under 12 Pa.C.S.
Ch. 62.

(ii)  Be registered with the department.
(iii)  Do either of the following:
(A)  In the same manner as a mortgage lender or mortgage broker, as applicable depending
upon whether the installment seller or holder makes or brokers installment sales contracts
secured by manufactured homes that are purchase-money mortgage loans, obtain and maintain
bond coverage for mortgage originators consistent with section 6131(c)(5) or (e)(3)
and file a periodic report consistent with section 6135(a)(3); or

(B)  Annually demonstrate to the department that the mortgage originators employed by or
under the direct supervision and control of the installment seller or holder have
obtained and maintained the bond coverage required by section 6131(f)(4) in a form
acceptable to the department.

(iv)  Ensure employees or individuals under the direct supervision and control of the installment
seller or holder required to be licensed as mortgage originators have completed the
requirements under section 6131.1 and have obtained the required mortgage originator
license.]

* * *
§ 6121.  General requirements.
A licensee shall do all of the following:
* * *
(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[,] or 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)  As follows:
(i)  Ensure that all lock-in agreements shall be in writing and shall contain at least
the following provisions:

[(i)] (A)  The expiration date of the lock-in, if any.

[(ii] (B)  The interest rate locked in, if any.

[(iii)] (C)  The discount points locked in, if any.

[(iv)] (D)  The fee locked in, if any.

[(v)] (E)  The lock-in fee, if any.

(ii)  A licensee who is in compliance with 12 CFR 1026.37 (relating to content of disclosures
for certain mortgage transactions (Loan Estimate)) shall satisfy the requirements
under this subparagraph.

* * *
(13)  In the case of a mortgage broker[,] or mortgage lender [or mortgage loan correspondent], do all of the following:

* * *
§ 6122.  Powers conferred on certain licensees engaged in the mortgage loan business.
* * *
(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:

* * *
§ 6123.  Mortgage loan business prohibitions.
(a)  Mortgage loan business prohibitions.--A licensee engaging in the mortgage loan business
shall not:

* * *
[(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.]

* * *
(9)  In the case of a mortgage originator, engage in the mortgage loan business other than
on behalf of the single mortgage broker[,] or mortgage lender [or mortgage loan correspondent] or a person excepted from this chapter
or a person excepted from licensure under section 6112 (relating to exceptions to
license requirements) that sponsors the mortgage originator.

* * *
§ 6131.  Application for license.
(a)  Contents.--An application for a license under this chapter shall be on a form prescribed
and provided by the department. Consistent with sections 202 E and 405 F(1) of the
act of May 15, 1933 (P.L.565, No.111), known as the Department of Banking and Securities
Code, all applicants and licensees shall use the Nationwide Mortgage Licensing System
and Registry to obtain and maintain licenses under this chapter.

(1)  In the case of a mortgage broker, mortgage lender[,] or mortgage servicer [or mortgage loan correspondent], the application shall include
the following:

* * *
[(d)  Mortgage loan correspondent license.--The department shall issue a loan correspondent's
license applied for under this chapter if the applicant:

(1)  Obtains and will maintain a bond in the amount of $100,000, in a form acceptable to
the department, prior to the issuance of the license, from a surety company authorized
to do business in this Commonwealth. The bond shall run to the Commonwealth and shall
be for the use of the Commonwealth and any person or persons who obtain a judgment
against the mortgage loan correspondent for failure to carry out the terms of any
provision for which advance fees are paid. No bond shall comply with the requirements
of this section unless it contains a provision that it shall not be canceled for any
cause unless notice of intention to cancel is given to the department at least 30
days before the day upon which cancellation shall take effect. A mortgage loan correspondent
who can demonstrate to the satisfaction of the department that the correspondent does
not and will not accept advance fees shall be exempt from the bond requirement of
this paragraph.

(2)  Establishes a minimum net worth of $100,000 at the time of application and will, at
all times thereafter, maintain the minimum net worth.

(3)  Obtains and will maintain a surety bond in an amount that will provide coverage for
the mortgage originators sponsored by the applicant or licensee, in a form acceptable
to the department, prior to the issuance of the license, from a surety company authorized
to do business in this Commonwealth. The following shall apply:

(i)  The amount of the bond shall be $100,000 for an applicant or licensee whose mortgage
originators will originate or originated less than $30,000,000 in mortgage loans secured
by Pennsylvania dwellings or residential real estate in a calendar year; $200,000
for an applicant or licensee whose mortgage originators will originate or originated
$30,000,000 to $99,999,999.99 in mortgage loans secured by Pennsylvania dwellings
or residential real estate in a calendar year; $300,000 for an applicant or licensee
whose mortgage originators will originate or originated $100,000,000 to $249,999,999.99
in mortgage loans secured by Pennsylvania dwellings or residential real estate in
a calendar year; and $500,000 for an applicant or licensee whose mortgage originators
will originate or originated $250,000,000 or more in mortgage loans secured by Pennsylvania
dwellings or residential real estate in a calendar year.

(ii)  For an initial license applicant, the amount of the bond shall be determined by the
applicant's anticipated amount of mortgage loans secured by Pennsylvania dwellings
or residential real estate originated by its mortgage originators in the first calendar
year of licensing. For a licensee, the amount of the bond shall be determined annually
by the department based upon the amount of mortgage loans secured by Pennsylvania
dwellings or residential real estate originated by the licensee's mortgage originators
as indicated on the licensee's periodic report.

(iii)  The bond shall run to the Commonwealth and shall be for the use of the Commonwealth
and for the use of any consumer who is injured by the acts or omissions of the licensee's
mortgage originators that are related to the mortgage loan business regulated by this
chapter. No bond shall comply with the requirements of this section unless it contains
a provision that it shall not be canceled for any cause unless notice of intention
to cancel is given to the department at least 30 days before the day upon which cancellation
shall take effect. Cancellation of the bond shall not invalidate the bond regarding
the period of time it was in effect.

(4)  Designates an individual as the qualifying individual for the principal place of business
and separate individuals as branch managers for each branch, as applicable.]

* * *
(f)  Mortgage originator license.--A mortgage originator shall do all of the following:
(1)  Be an employee of or under the direct supervision and control of a licensed mortgage
broker[,] or mortgage lender [or mortgage loan correspondent], a person excepted from this chapter
or a person excepted from licensure under section 6112 (relating to exceptions to
license requirements). The licensee or person shall sponsor the mortgage originator
in the Nationwide Mortgage Licensing System and Registry and directly supervise, control
and maintain responsibility for the acts and omissions of the mortgage originator.

(2)  Be assigned to and work out of a licensed location of the sponsoring licensee [or], a location of a sponsoring person excepted from this chapter or excepted from licensure
under section 6112[, which, in the case of a sponsoring licensee, may be either the
mortgage originator's residence or a location of the licensee that is within 100 miles
of the mortgage originator's residence.] or a remote location.
* * *
(5)  Only engage in the mortgage loan business on behalf of the single mortgage broker[,]
or mortgage lender [or mortgage loan correspondent] or a person excepted from this chapter
or a person excepted from licensure under section 6112 that sponsors the mortgage
originator.

* * *
§ 6131.1.  Prelicensing and continuing education.
* * *
(b)  Prelicensing education.--
(1)  A mortgage originator applicant, and at least one qualifying individual of a mortgage
broker[,] or mortgage lender [or mortgage loan correspondent] applicant, shall complete at least
20 hours of education programs approved in accordance with paragraph (2), which shall
include all of the following:

* * *
(c)  Prelicensing written test.--
(1)  A mortgage originator applicant, and at least one qualifying individual of a mortgage
broker[,] or mortgage lender [or mortgage loan correspondent] applicant, shall pass, in accordance
with the standards established under this subsection, a qualified written test developed
by the Nationwide Mortgage Licensing System and Registry and administered by a test
provider approved by the Nationwide Mortgage Licensing System and Registry based upon
reasonable standards. The department may also require applicants to pass a test regarding
Pennsylvania-specific law, which shall be administered by a test provider approved
by the department or as otherwise determined by the department under subsection (e).

* * *
(d)  Continuing education.--
(1)  A licensee who is a mortgage originator and all branch managers and qualifying individuals
of a mortgage broker[,] or mortgage lender [or mortgage loan correspondent] shall annually complete at least
eight hours of education programs in accordance with paragraph (2), which shall include
all of the following:

* * *
(8)  An individual who is a mortgage originator, branch manager or qualifying individual
of a mortgage broker[,] or mortgage lender [or mortgage loan correspondent] is not required to complete the requirements
of this subsection in any licensing year in which the individual has completed the
requirements of subsection (b).

* * *
Section 3.  Section 6132(a) introductory paragraph and (1), (b) introductory paragraph and (1)
and (d) of Title 7 are amended and the section is amended by adding subsections to
read:

§ 6132.  License fees.
(a)  Initial application fees.--Except as set forth in [subsection] subsections (a.1) and (d)(1), an applicant shall pay to the department at the time an application is filed
an initial nonrefundable application fee as set forth under this subsection.

(1)  For mortgage lenders [and mortgage loan correspondents], $1,500 for the principal
place of business and an additional fee of $1,500 for each branch office.

* * *
(a.1)  Enhanced initial application fees.--Except as set forth in subsection (d)(1), if in any calendar year there is at least a 20% reduction in the
total number of branch licenses that existed in calendar year 2021, an applicant shall
pay to the department at the time an application is filed an initial nonrefundable
application fee as set forth under this subsection:
(1)  For mortgage lenders, $1,725 for the principal place of business and an additional
fee of $1,725 for each branch office.

(2)  For mortgage brokers, $1,150 for the principal place of business and an additional
fee of $300 for each branch office.

(3)  For mortgage originators, $225.
(4)  For mortgage servicers, $2,875 for the principal place of business and an additional
fee of $1,450 for each branch location.

(b)  Renewal fees.--Prior to each annual renewal of a license, except as set forth in [subsection]
subsections (b.1) and (d)(2), a licensee shall pay to the department a nonrefundable license renewal fee
as set forth under this subsection.

(1)  For mortgage lenders [and mortgage loan correspondents], $750 for the principal place
of business and an additional fee of $750 for each branch office.

* * *
(b.1)  Enhanced renewal fees.--Prior to each annual renewal of a license, except as set forth
in subsection (d)(2), if in any calendar year there is at least a 20% reduction in the total number of branch
licenses renewed in calendar year 2021, a licensee shall pay to the department a nonrefundable license renewal fee as set
forth under this subsection:
(1)  For mortgage lenders, $875 for the principal place of business and an additional fee
of $875 for each branch office.

(2)  For mortgage brokers, $575 for the principal place of business and an additional fee
of $300 for each branch office.

(3)  For mortgage originators, $125.
(4)  For mortgage servicers, $1,150 for the principal place of business and an additional
fee of $575 for each branch location.

* * *
(d)  Exception to mortgage originator license fees.--
(1)  An applicant shall not be required to pay the fee for a mortgage originator license
as provided in subsection (a) or (a.1) if the applicant is also individually a mortgage lender applicant, [mortgage loan
correspondent applicant,] mortgage servicer applicant or mortgage broker applicant.

(2)  A licensee shall not be required to pay the fee for a mortgage originator license
as provided in subsection (b) or (b.1) if the licensee is also individually a mortgage lender licensee[, mortgage loan correspondent
licensee] or mortgage broker licensee.

Section 4.  Sections 6135(a)(3), 6139(a)(11) and (14) and 6141(a)(1) of Title 7 are amended to
read:

§ 6135.  Licensee requirements.
(a)  Requirements of licensee.--
* * *
(3)  A mortgage broker, mortgage lender, mortgage servicer[, mortgage loan correspondent,]
or a mortgage originator that is required to obtain and maintain its own bond coverage
under section 6131(f)(4) (relating to application for license), shall file periodically,
as determined by the department, a report with the department or the Nationwide Mortgage
Licensing System and Registry, as determined by the department, setting forth such
information as the department shall require concerning the first or secondary mortgage
loan business conducted by the licensee. Licensees who fail to file the required report
at the date required by the department may be subject to a penalty of $100 for each
day after the due date until the report is filed.

* * *
§ 6139.  Suspension, revocation or refusal.
(a)  Departmental action.--The department may suspend, revoke or refuse to renew a license
issued under this chapter if any fact or condition exists or is discovered which,
if it had existed or had been discovered at the time of filing of the application
for the license, would have warranted the department in refusing to issue the license
or if a licensee or director, officer, partner, employee, mortgage originator or owner
of a licensee has:

* * *
(11)  Accepted an advance fee without having obtained the bond required by section
[6131(d)(1) or (e)(1)] 6131(e)(1) (relating to application for license).

* * *
(14)  In the case of a mortgage broker[,] or mortgage lender [or mortgage loan correspondent], conducted the mortgage loan business
through an unlicensed mortgage originator.

* * *
§ 6141.  Mortgage servicers.
(a)  Regulatory coordination.--In order to implement this chapter as applicable to mortgage
servicers, the following apply:

(1)  Subject to paragraph (2), the department shall promulgate regulations which effectively
incorporate the Consumer Financial Protection Bureau's mortgage servicer regulations
at 12 CFR Pt. 1024, Subpt. C (relating to mortgage servicing), other than 12 CFR 1024.30
(relating to scope). The regulations promulgated under this paragraph shall not apply to a reverse mortgage or timeshare or a person excepted from licensure under section 6112 (relating to exceptions to license requirements).
* * *
Section 5.  This act shall take effect as follows:
(1)  The following shall take effect immediately:
(i)  This section.
(ii)  The amendment or addition of the definitions of "branch," "remote location" and "wholesale
table funder" in 7 Pa.C.S. § 6102.

(iii)  The amendment of 7 Pa.C.S. § 6131(f)(2).
(2)  The remainder of this act shall take effect in 60 days.
 
APPROVED--The 3rd day of February, A.D. 2022.
 
TOM WOLF

Structure Pennsylvania Consolidated & Unconsolidated Statutes