Current through Register Vol. 54, No. 24, June 15, 2024
Section 7.9 - Disclosure requirements-statement of policy(a) Disclosures required under section 401 of the act (41 P. S. § 401) are those disclosures required by the Truth in Lending Act (15 U.S.C.A. §§ 1601-1667e) and the Real Estate Settlement Procedures Act of 1974 (12 U.S.C.A. §§ 2601-2617). Residential mortgage lenders are not required to provide disclosures to residential mortgage debtors under section 401 when no disclosures are required to be provided by the Truth in Lending Act, the Real Estate Settlement Procedures Act of 1974 or regulations promulgated thereunder.(b) By way of illustration, no disclosure is required under section 401 for an extension of credit for business or commercial purposes, even though the loan is secured by a lien on residential real estate, because those transactions are exempt under the Truth in Lending Act, the Real Estate Settlement Procedures Act of 1974 and regulations promulgated thereunder.(c) This statement of policy reflects the Department's past and continuing interpretation of section 401 of the act since the act was amended in 1977 by section 1 of the act of December 16, 1977 (P. L. 328, No. 97).The provisions of this § 7.9 adopted February 19, 1988, effective 2/20/1988, 18 Pa.B. 778.The provisions of this § 7.9 issued under section 601 of the act of January 30, 1974 (P. L. 13, No. 6) (41 P. S. § 601).