PRINTER'S NO. 593
No. 563 Session of 1977
INTRODUCED BY SCANLON, LEWIS, DWYER, ANDREWS, STAUFFER,
ROMANELLI AND SCHAEFER, MARCH 28, 1977
REFERRED TO BUSINESS AND COMMERCE, MARCH 28, 1977
AN ACT
1 Amending the act of January 30, 1974 (P.L.13, No.6), entitled
2 "An act regulating agreements for the loan or use of money;
3 establishing a maximum lawful interest rate in the
4 Commonwealth; providing for a legal rate of interest;
5 detailing exceptions to the maximum lawful interest rate for
6 residential mortgages and for any loans in the principal
7 amount of more than fifty thousand dollars and Federally
8 insured or guaranteed loans and unsecured, noncollateralized
9 loans in excess of thirty-five thousand dollars and business
10 loans in excess of ten thousand dollars; providing
11 protections to debtors to whom loans are made including the
12 provision for disclosure of facts relevant to the making of
13 residential mortgages, providing for notice of intention to
14 foreclose and establishment of a right to cure defaults on
15 residential mortgage obligations, provision for the payment
16 of attorney's fees with regard to residential mortgage
17 obligations and providing for certain interest rates by banks
18 and bank and trust companies; clarifying the substantive law
19 on the filing of and execution on a confessed judgment;
20 prohibiting waiver of provisions of this act, specifying
21 powers and duties of the Secretary of Banking, and
22 establishing remedies and providing penalties for violations
23 of this act," changing disclosure requirements for certain
24 costs, charges and for mortgage payments.
25 The General Assembly of the Commonwealth of Pennsylvania
26 hereby enacts as follows:
27 Section 1. Section 401, act of January 30, 1974 (P.L.13,
28 No.6), referred to as the Loan Interest and Protection Law, is
29 amended to read:
1 Section 401. Disclosure Requirements.--[(a) Any residential
2 mortgage lender, simultaneous with the issuance of a mortgage
3 commitment but in any event at least five business days prior to
4 the loan settlement of a residential mortgage, shall disclose
5 directly to the residential mortgage debtor, or send to the
6 residential mortgage debtor under such circumstances that the
7 disclosure would normally be received at least five business
8 days prior to loan settlement of the residential mortgage, the
9 finance charge, an estimated total of the actual settlement
10 costs, as defined in this act, to be paid by the residential
11 mortgage debtor at settlement, the anticipated actual settlement
12 costs to be charged by the residential mortgage lender, plus the
13 number, amount and due date or periods of payments scheduled to
14 repay the entire indebtedness, and the sum of such payments
15 using the term "total of payments," and the existence, identity
16 and compensation, if any, paid directly or indirectly by the
17 residential mortgage lender to a residential mortgage
18 intermediary.
19 (b) The disclosure provided for in this section shall be
20 made in the manner provided by the Secretary of Banking by
21 regulation. The disclosure shall clearly and conspicuously set
22 forth all required disclosure information.] A residential
23 mortgage lender shall provide to the residential mortgage debtor
24 disclosures required by the "Truth in Lending Act," Title I,
25 Public Law 90-321, 82 Stat. 146, and the "Real Estate Settlement
26 Procedures Act of 1974," Public Law 93-533, 88 Stat. 1724, and
27 regulations adopted pursuant thereto.
28 Section 2. This act shall take effect in 60 days.
C16L7DGS/19770S0563B0593 - 2 -