Pennsylvania Adds Licensing Requirements for Mortgage Servicers
Pennsylvania is adding a requirement that a Mortgage Servicer License is required to engage in the mortgage loan business as a mortgage servicer. As such, the definition of “mortgage loan business” has been amended to include the business of servicing mortgage loans. In addition, the definition of “mortgage servicer” has been added and defined as “[a] person who engages in the mortgage loan business by directly or indirectly servicing a mortgage loan.”
Exempt from licensure is a mortgage lender who acts as a mortgage servicer for mortgage loans the mortgage lender has originated, negotiated, and owns. A person who services less than four mortgage loans in a calendar year, unless determined to be engaged in the mortgage loan business by the department, is also exempt.
Additional mortgage servicer requirements related to the application for a license, net worth, fidelity bond coverage, qualified individuals, licensee fees, licensee requirements, and regulations have been added as well.
Effective immediately, the department must promulgate regulations to implement the new mortgage servicer requirements. The new requirements will take effect as determined by these regulations.