PRINTER'S NO. 3380
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2202
Session of
2018
INTRODUCED BY RYAN, GILLEN, PHILLIPS-HILL, KEEFER, SANKEY,
WATSON AND ZIMMERMAN, APRIL 18, 2018
REFERRED TO COMMITTEE ON URBAN AFFAIRS, APRIL 18, 2018
AN ACT
Amending the act of January 30, 1974 (P.L.13, No.6), entitled
"An act regulating agreements for the loan or use of money;
establishing a maximum lawful interest rate in the
Commonwealth; providing for a legal rate of interest;
detailing exceptions to the maximum lawful interest rate for
residential mortgages and for any loans in the principal
amount of more than fifty thousand dollars and Federally
insured or guaranteed loans and unsecured, noncollateralized
loans in excess of thirty-five thousand dollars and business
loans in excess of ten thousand dollars; providing
protections to debtors to whom loans are made including the
provision for disclosure of facts relevant to the making of
residential mortgages, providing for notice of intention to
foreclose and establishment of a right to cure defaults on
residential mortgage obligations, provision for the payment
of attorney's fees with regard to residential mortgage
obligations and providing for certain interest rates by banks
and bank and trust companies; clarifying the substantive law
on the filing of and execution on a confessed judgment;
prohibiting waiver of provisions of this act, specifying
powers and duties of the Secretary of Banking, and
establishing remedies and providing penalties for violations
of this act," in protective provisions, providing for
appraisal and final sale price of property.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of January 30, 1974 (P.L.13, No.6),
referred to as the Loan Interest and Protection Law, is amended
by adding a section to read:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Section 404.1. Appraisal and Final Sale Price of Property.--
(a) Notwithstanding the provisions of any other law, after a
notice of intention to foreclose has been given pursuant to
section 403 of this act, the following shall apply:
(1) Except as provided under paragraph (2), a residential
mortgage lender shall have the property which is the subject of
a residential mortgage appraised by a real estate appraiser
licensed or certified by the State Board of Certified Real
Estate Appraisers.
(2) If no residential mortgage lender exists, the entity
initiating the foreclosure shall have the property which is the
subject of a residential mortgage appraised by a real estate
appraiser licensed or certified by the State Board of Certified
Real Estate Appraisers.
(b) The final sale price of the property subject to a
sheriff sale or other judicial sale shall exceed eighty per cent
of the appraised value of the property as determined by the
appraisal conducted under subsection (a) of this section. If the
final sale price of the property subject to a sheriff sale or
other judicial sale does not exceed eighty per cent of the
appraised value of the property as determined by the appraisal
conducted under subsection (a) of this section, the transaction
shall not proceed.
(c) The provisions of this section shall not apply to the
following:
(1) abandoned property; and
(2) rental property.
Section 2. This act shall take effect in 60 days.
20180HB2202PN3380 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28