By: Transactional Department
Pennsylvania’s new Mortgage Loan Industry Licensing and Consumer Protection Law, intended to provide better government control over mortgage lending practices, was amended in August 2009. The law requires that, in almost every instance, anyone issuing a loan primarily for personal, family or household use, which is secured by a mortgage on residential real estate, must be licensed by the Pennsylvania Department of Banking. The new law does not have an exception for builders, homeowners, or real estate holding companies, and so effectively negates the ability to provide short term swing loans or seller financing which is secured by a mortgage. There are, however, some options available which are described in more detail in this full article.