In April 2013, Representative Scavello (R. Monroe County) and
others introduced HB 1124, which would amend the Mortgage Licensing
Act (“MLA”), 7 Pa. C.S. 6101 et seq. HB 1124 was passed
by the House on April 24, 2013 and is currently with the Senate.
The bill has the support of the Department of Banking and
Securities. There is a good chance that HB 1124 will be signed into
law by the end of 2013. The bill includes new exceptions to
licensure, new statutory requirements, and clarifies existing
provisions of the MLA which is regulated and enforced by the
Department of Banking and Securities
(“Department”).
I. LICENSURE: The proposed new exceptions to licensure
include:
- Infrequent loans. Currently, the only de minimus exception to
licensure in the MLA is for a person who offers or negotiates the
terms of a loan for a member of that person’s immediate
family. 7 Pa. C.S. § 6112(3). HB 1124 would repeal this
exemption and replace it with a more general exemption for
