Changes are coming to Pennsylvania for nonbank mortgage servicers and this change could impact your business. Governor Tom Wolf of Pennsylvania ended 2017 by signing Senate Bill 751, which changed the licensing requirements for nonbank servicers within the mortgage industry. The new law authorizes “the Department of Banking and Securities to license and examine nonbank mortgage servicers to help ensure the rights of homeowners are protected” and now requires a separate Mortgage Servicer License. With these changes, nonbank servicers have just six months to apply for their license or they will lose the ability to do business in Pennsylvania.
The state banking department expects to start accepting license applications by the beginning of April 2018. The license applications will be accepted through the Nationwide Multistate Licensing System (NMLS). As part of the process, nonbank lenders will only have until June 30, 2018, to get their application into the system.
With this change taking place, now is the time to address your license in Pennsylvania. Below are a few points to consider as you begin the new application process.
Net Worth Requirements
Pennsylvania’s net worth requirement for a mortgage lender is $250,000. We anticipate the net worth requirement for the new Servicing License to be the same, but details may change as we approach the state’s required deadline.
What About Audited Financials?
While the state of Pennsylvania doesn’t require audited financial statements as part of the application process for a lender (officer certified is acceptable), they will most likely require servicer licensees to have their financials audited. If you have them available, then they are going to be requested. Once again, it’s important to make sure that you have your financials ready as part of your application process.
Corporate Offices and Branches
When it comes to your corporate offices, you need to be sure that your QI is a licensed mortgage loan officer (MLO). The address of the MLO must match the main address on your company’s form. If you’re opening any branch locations, they’ll each need a licensed loan officer.
If you’re currently operating as a nonbank servicer of mortgages in the state of Pennsylvania, the recent changes to their licensing are going to require you to get licensed to continue doing business in Pennsylvania. For questions about the steps involved in the application process and what requirements you need to meet, contact us. The Mortgage Licensing Group will help you through submitting your application and all the steps leading up to your submission.
The Mortgage Licensing Group, Inc. is a full-service mortgage licensing firm headquartered in Southern California that is recognized throughout the industry as an experienced and reliable service provider. Established in 2006, our company has been on the forefront of the ever-changing rules and regulations, helping alleviate the often daunting task of meeting the diverse state licensing requirements for our clientele.