Regular Session 2021-2022 House Bill 1588 P.N. 1742

PRINTER'S NO. 1742

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1588

Session of

2021

INTRODUCED BY MERCURI, ROTHMAN, BROOKS, DRISCOLL, GREINER,

HENNESSEY, HILL-EVANS, JOZWIAK, MIZGORSKI, NEILSON, ROWE,

RYAN AND STAMBAUGH, JUNE 9, 2021

REFERRED TO COMMITTEE ON COMMERCE, JUNE 9, 2021

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

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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

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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

20210HB1588PN1742 - 4 -

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.

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.

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

20210HB1588PN1742 - 5 -

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.

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

20210HB1588PN1742 - 6 -

(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

(relating to exceptions to license requirements) 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

20210HB1588PN1742 - 7 -

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), (d) and (f)(1), (2)

and (5), 6131.1(b)(1) introductory paragraph, (c)(1) and (d)(1)

introductory paragraph and (8), 6132(a)(1), (b)(1) and (d),

6135(a)(3), 6139(a)(11) and (14) and 6141(a)(1) of Title 7 are

amended to read:

20210HB1588PN1742 - 8 -

§ 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:

* * *

20210HB1588PN1742 - 9 -

(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

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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

20210HB1588PN1742 - 11 -

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);

(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

20210HB1588PN1742 - 12 -

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:

* * *

20210HB1588PN1742 - 13 -

§ 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:

* * *

20210HB1588PN1742 - 14 -

[(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

20210HB1588PN1742 - 15 -

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

20210HB1588PN1742 - 16 -

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

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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:

* * *

(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

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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).

* * *

§ 6132. License fees.

(a) Initial application fees.--Except as set forth in

subsection (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.

* * *

(b) Renewal fees.--Prior to each annual renewal of a

20210HB1588PN1742 - 19 -

license, except as set forth in subsection (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.

* * *

(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) 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)

if the licensee is also individually a mortgage lender

licensee[, mortgage loan correspondent licensee] or mortgage

broker licensee.

§ 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

20210HB1588PN1742 - 20 -

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

20210HB1588PN1742 - 21 -

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 3. This act shall take effect in 60 days.

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