Section 6112 - Exceptions to license requirementsThe following persons shall not be required to be licensed under this chapter in order to conduct the mortgage loan business:
(1) A banking institution or a federally chartered or State-chartered credit union, if the primary regulator of the banking institution or federally chartered or State-chartered credit union supervises the banking institution or federally chartered or State-chartered credit union.(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) [Deleted by 2022 Amendment.](iv) A person excepted from licensure under this section.(v) A mortgage originator.(v.1)A mortgage servicer.(vi)An agent of a person listed in subparagraphs (i), (ii), (iii), (iv) [and (v)], (v) and (v.1).(3)A person who originates, services or negotiates less than four mortgage loans in a calendar year, unless determined to be engaged in the mortgage loan business by the department.(4) Any agency or instrumentality of the Federal Government or a corporation otherwise created by an act of the United States Congress, including the Federal National Mortgage Association, the Government National Mortgage Association, the Veterans' Administration, the Federal Home Loan Mortgage Corporation and the Federal Housing Administration. To qualify for the exception under this paragraph, the agency or instrumentality must ensure employees required to be licensed as mortgage originators have completed the requirements under section 6131.1 (relating to prelicensing and continuing education), have obtained the required mortgage originator license and:(i) in the same manner as a mortgage lender, obtain and maintain bond coverage for mortgage originators consistent with section 6131(c)(5) (relating to application for license) and file an annual report consistent with section 6135(a)(3) (relating to licensee requirements); or(ii) annually, in a form acceptable to the department, demonstrate to the department that all of the mortgage originators employed by the agency or instrumentality have obtained and maintained the bond coverage required by section 6131(f)(4).(5) Any 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. To qualify for the exception under this paragraph, the agency or instrumentality must ensure employees required to be licensed as mortgage originators have completed the requirements under section 6131.1, have obtained the required mortgage originator license and: (i) in the same manner as a mortgage lender, obtain and maintain bond coverage for mortgage originators consistent with section 6131(c)(5) and file an annual report consistent with section 6135(a)(3); or(ii) annually, in a form acceptable to the department, demonstrate to the department that all of the mortgage originators employed by the agency or instrumentality have obtained and maintained the bond coverage required by section 6131(f)(4).(6) Consumer discount companies, except that a consumer discount company that acts as a mortgage broker, mortgage lender or mortgage servicer , 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. (7) Affiliates of banking institutions and subsidiaries and affiliates of federally chartered or State-chartered credit unions. The exception under this paragraph does not apply to consumer discount companies. Notwithstanding the exception under this paragraph, subsidiaries and affiliates of federally chartered or State-chartered credit unions and affiliates of banking institutions shall:(i) be subject to the provisions of sections 6121(1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12), (13) and (14) (relating to general requirements), 6122(a) and (b) (relating to powers conferred on certain licensees engaged in the mortgage loan business), 6123(a) (relating to mortgage loan business prohibitions), 6124 (relating to prohibited clauses in mortgage loan documents), 6125 (relating to mortgage lending authority), 6126 (relating to requirements as to open-end loans), 6135(a)(2), (3) and (4), (b) and (c), 6138 and 6140(b);(ii) deliver as required to the department annually copies of financial reports made to all supervisory agencies;(iii) be registered with the department;(iv) in the same manner as a mortgage lender, obtain and maintain bond coverage for mortgage originators consistent with section 6131(c)(5); and(v) ensure employees required to be licensed as mortgage originators have completed the requirements under section 6131.1 and have obtained the required mortgage originator license.(8) Employees or individuals under the direct supervision and control of a mortgage broker, mortgage lender or mortgage servicer , or a person excepted from licensure under this section, who are not otherwise required to be licensed as mortgage originators. (9) Registered mortgage loan originators when acting on behalf of their employers.(10) Deleted by 2009, Aug. 5, P.L. 117, No. 31, § 3, imd. effective.(11) Nonprofit corporations not otherwise engaged in or holding themselves out to the public as being engaged in the mortgage loan business making mortgage loans to promote home ownership or improvements for the disadvantaged. To qualify for the exception under this paragraph, the nonprofit corporation must ensure employees required to be licensed as mortgage originators have completed the requirements under section 6131.1, have obtained the required mortgage originator license and: (i) in the same manner as a mortgage lender, obtain and maintain bond coverage for mortgage originators consistent with section 6131(c)(5) and file an annual report consistent with section 6135(a)(3); or(ii) annually, in a form acceptable to the department, demonstrate to the department that all of the mortgage originators employed by the nonprofit corporation have obtained and maintained the bond coverage required by section 6131(f)(4).(12) A nonprofit corporation not otherwise engaged in or holding itself out to the public as being engaged in the mortgage loan business which meets all of the following subparagraphs: (i) Does not make more than 12 mortgage loans in a calendar year with its own funds, not including funds borrowed through warehouse lines of credit or other sources for the purpose of making mortgage loans.(ii) Makes mortgage loans which are retained in the corporation's own portfolios and not regularly sold to others and are made to promote and advance the cultural traditions and lifestyles of bona fide religious organizations.(iii) Does either of the following: (A) In the same manner as a mortgage lender, obtains and maintains bond coverage for mortgage originators consistent with section 6131(c)(5) and files an annual report consistent with section 6135(a)(3).(B) Annually, in a form acceptable to the department, demonstrates to the department that all of the mortgage originators employed by the nonprofit corporation have obtained and maintained the bond coverage required by section 6131(f)(4).(iv) Ensures employees required to be licensed as mortgage originators have completed the requirements under section 6131.1 and have obtained the required mortgage originator license.(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.(14) A nonoriginating person, unless otherwise deemed to be engaged in the mortgage loan business by the department, except that the nonoriginating person shall: (i) Be subject to the provisions of Subchapter C and sections 6135(a)(2), (3) and (4) and (c), 6138 and 6140(b). (ii) Be registered with the department. (iii) In the same manner as a mortgage broker, obtain and maintain bond coverage for mortgage originators consistent with section 6131(c)(5). (iv) Ensure employees or individuals under the direct supervision and control of the person required to be licensed as mortgage originators have completed the requirements under section 6131.1 and have obtained the required mortgage originator license. (15) Notwithstanding section 6151 (relating to applicability), a mortgage originator licensed by one or more other states and physically located in this Commonwealth that does not engage in any transactions involving Pennsylvania consumers, dwellings or residential real estate. (16) A person who engages in mortgage loan modifications for existing mortgage loans held or serviced by that person or that person's employer and who does not otherwise engage in the mortgage loan business. (17) An individual or entity licensed under the act of September 2, 1965 ( P.L. 490, No.249), referred to as the Money Transmission Business Licensing Law, if the individual or entity only engages in the mortgage loan business to the extent funds are transmitted from a mortgagor to make mortgage payments on behalf of the mortgagor in order to exceed regularly scheduled minimum payment obligations under the terms of the indebtedness. Amended by P.L. TBD 2022 No. 8, § 2, eff. 4/4/2022.Amended by P.L. 1260 2017 No. 81, § 1, eff. 4/28/2018.Amended by P.L. 1081 2013 No. 98, § 2, eff. 11/27/2014.2008, July 8, P.L. 796, No. 56, § 1, effective in 120 days [Nov. 5, 2008]. Amended 2009, Aug. 5, P.L. 117, No. 31, § 3, imd. effective; 2010, Nov. 23, P.L. 1346, No. 122, § 2, imd. effective.