Bill Text: PA HB2547 | 2009-2010 | Regular Session | Introduced

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Bill Title: Further providing for definitions and for exceptions to license requirements.

Spectrum: Bipartisan Bill

Status: (Passed) 2010-11-23 - Act No. 122 [HB2547 Detail]

Download: Pennsylvania-2009-HB2547-Introduced.html

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PRINTER'S NO. 3826
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2547 Session of2010
INTRODUCED BY DALEY, HESS, BELFANTI, BOYD, CALTAGIRONE, FAIRCHILD, GEIST, GODSHALL, HARRIS, KORTZ, LONGIETTI, MAHONEY, MOUL, OBERLANDER, PETRARCA, SCAVELLO, SIPTROTH, SOLOBAY, SWANGER, KULA AND METZGAR, MAY 27, 2010
REFERRED TO COMMITTEE ON COMMERCE, MAY 27, 2010
AN ACT
Amending Title 7 (Banks and Banking) of the Pennsylvania
Consolidated Statutes, further providing for definitions and
for exceptions to license requirements.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 6102 of Title 7 of the Pennsylvania
Consolidated Statutes is amended by adding definitions 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:
* * *
"Holder." As defined in section 3 of the act of June 28,
1947 (P.L.1110, No.476), known as the Motor Vehicle Sales
Finance Act.
* * *
"Installment seller." As defined in section 3 of the act of
June 28, 1947 (P.L.1110, No.476), known as the Motor Vehicle
Sales Finance Act.
* * *
"Manufactured home." Both of the following:
(1) A manufactured home as defined in section 603(6) of
the National Manufactured Housing Construction and Safety
Standards Act of 1974 (Public Law 93-383, 42 U.S.C. §
5402(6)).
(2) A mobile home as defined in 75 Pa.C.S. § 102
(relating to definitions).
* * *
"Purchase-money mortgage loan." A mortgage loan that is a
residential mortgage transaction as defined in 12 CFR 226.2(a)
(24) (relating to definitions and rules of construction).
* * *
Section 2. Section 6112(4), (5), (7), (11) and (12) of Title
7 are amended and the section is amended by adding a paragraph
to read:
§ 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:
* * *
(4) Any agency or instrumentality of the Federal
Government or a corporation otherwise created by an act of
the United States Congress, including the Federal National
Mortgage Association, the Government National Mortgage
Association, the Veterans' Administration, the Federal Home
Loan Mortgage Corporation and the Federal Housing
Administration. To qualify for the exception under this
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paragraph, the agency or instrumentality must ensure
employees required to be licensed as mortgage originators
have completed the requirements under section 6131.1
(relating to prelicensing and continuing education), have
obtained the required mortgage originator license and:
(i) in the same manner as a mortgage lender, obtain
and maintain bond coverage for mortgage originators
consistent with section 6131(c)(5) (relating to
application for license) and file an annual report
consistent with section 6135(a)(3) (relating to licensee
requirements); or
(ii) annually, in a form acceptable to the
department, demonstrate to the department that all of the
mortgage originators employed by the agency or
instrumentality have obtained and maintained the bond
coverage required by section 6131(f)(4).
(5) Any 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. To
qualify for the exception under this paragraph, the agency or
instrumentality must ensure employees required to be licensed
as mortgage originators have completed the requirements under
section 6131.1, have obtained the required mortgage
originator license and:
(i) in the same manner as a mortgage lender, obtain
and maintain bond coverage for mortgage originators
consistent with section 6131(c)(5) and file an annual
report consistent with section 6135(a)(3); or
(ii) annually, in a form acceptable to the
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department, demonstrate to the department that all of the
mortgage originators employed by the agency or
instrumentality have obtained and maintained the bond
coverage required by section 6131(f)(4).
* * *
(7) Affiliates of banking institutions and subsidiaries
and affiliates of federally chartered or State-chartered
credit unions. The exception under this paragraph does not
apply to consumer discount companies. Notwithstanding the
exception under this paragraph, subsidiaries and affiliates
of federally chartered or State-chartered credit unions and
affiliates of banking institutions shall:
(i) be subject to the provisions of Subchapter C and
sections 6135(a)(2), (3) and (4), (b) and (c), 6138 and
6140(b);
(ii) deliver as required to the department annually
copies of financial reports made to all supervisory
agencies;
(iii) be registered with the department; [and]
(iv) [with the exception of subsidiaries of
federally chartered or State-chartered credit unions,] in
the same manner as a mortgage lender, obtain and maintain
bond coverage for mortgage originators consistent with
section 6131(c)(5)[.]; and
(v) ensure employees required to be licensed as
mortgage originators have completed the requirements
under section 6131.1 and have obtained the required
mortgage originator license.
* * *
(11) Nonprofit corporations not otherwise engaged in or
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holding themselves out to the public as being engaged in the
mortgage loan business making mortgage loans to promote home
ownership or improvements for the disadvantaged. To qualify
for the exception under this paragraph, the nonprofit
corporation must ensure employees required to be licensed as
mortgage originators have completed the requirements under
section 6131.1, have obtained the required mortgage
originator license and:
(i) in the same manner as a mortgage lender, obtain
and maintain bond coverage for mortgage originators
consistent with section 6131(c)(5) and file an annual
report consistent with section 6135(a)(3); or
(ii) annually, in a form acceptable to the
department, demonstrate to the department that all of the
mortgage originators employed by the nonprofit
corporation have obtained and maintained the bond
coverage required by section 6131(f)(4).
(12) A nonprofit corporation not otherwise engaged in or
holding itself out to the public as being engaged in the
mortgage loan business which meets all of the following
subparagraphs:
(i) Does not make more than 12 mortgage loans in a
calendar year with its own funds, not including funds
borrowed through warehouse lines of credit or other
sources for the purpose of making mortgage loans.
(ii) Makes mortgage loans which are retained in the
corporation's own portfolios and not regularly sold to
others and are made to promote and advance the cultural
traditions and lifestyles of bona fide religious
organizations.
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(iii) Does either of the following:
(A) In the same manner as a mortgage lender,
obtains and maintains bond coverage for mortgage
originators consistent with section 6131(c)(5) and
files an annual report consistent with section
6135(a)(3).
(B) Annually, in a form acceptable to the
department, demonstrates to the department that all
of the mortgage originators employed by the nonprofit
corporation have obtained and maintained the bond
coverage required by section 6131(f)(4).
(iv) Ensures employees required to be licensed as
mortgage originators have completed the requirements
under section 6131.1 and have obtained the required
mortgage originator license.
(13) An installment seller of, or holder of installment
sales contracts secured by, manufactured homes who is
licensed under the act of June 28, 1947 (P.L.1110, No.476),
known as the Motor Vehicle Sales Finance Act, 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 the Motor Vehicle Sales
Finance Act.
(ii) Be registered with the department.
(iii) Do either of the following:
(A) In the same manner as a mortgage lender or
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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
an annual report consistent with section 6135(a)(3);
or
(B) Annually demonstrate to the department that
the mortgage originators employed by 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 required to be licensed as
mortgage originators have completed the requirements
under section 6131.1 and have obtained the required
mortgage originator license.
Section 3. This act shall take effect immediately.
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