ATTENTION PENNSYLVANIA MORTGAGE SERVICERS! On December 13, the Pennsylvania Legislature gave final approval and sent to the governor a substantial amendment to Pennsylvania’s Mortgage Licensing Act, which would establish a brand new licensing requirement for most residential mortgage servicers. The amendments were put forward by the Pennsylvania Department of Banking and Securities, and once signed will not take effect until regulations are promulgated. Reed Smith’s Financial Services Regulatory Group, which was just asked to become legislative counsel for a regional residential mortgage trade association, the Mortgage Bankers Association of Greater Philadelphia mbagp.org, has produced the summary attached and can provide more information.
Type: Client Alerts
MLA Amendments: Servicing
On December 13, the Pennsylvania Legislature, at the behest of the Pennsylvania Department of Banking and Securities (the “Department”), passed and sent to the Governor for signature, amendments to the Pennsylvania Mortgage Licensing Act (7 Pa. C.S.A. § 6101 et. seq.) (the “MLA”). The changes sought by the Department would expand the MLA to cover almost all mortgage servicing activity through a new licensing requirement and added supervisory authority.
Senate Bill 751 (the “MLA Amendments”) was introduced in the Pennsylvania Legislature earlier this year and approved by the Senate in September before House approval on December 13. The Department has made this legislation a top priority to enable more robust response to complaints about servicing, and to address fears that federal mortgage servicing enforcement may be reduced. The Governor will surely sign the MLA Amendments, but they will not take effect until regulations are promulgated and complete.