Notice of Conditional License Issuance under Act 58 of 2008
[38 Pa.B. 5987]
[Saturday, November 1, 2008]
On November 5, 2008, Act 58 of 2008, 7 Pa.C.S. Chapter 61 (Mortgage Act), will become effective and Chapter 3 of the Mortgage Bankers and Brokers and Consumer Equity Protection Act (MBBCEPA) and the entire Secondary Mortgage Loan Act (SMLA) will be repealed by operation of law. Existing mortgage business licensees under Chapter 3 of the MBBCEPA and the SMLA, and employees of those licensees and licensees under the Consumer Discount Company Act (CDCA), are therefore required to transition into licensees under the Mortgage Act. As part of this transition, beginning on November 5, 2008, Mortgage Act applicants and licensees are required to use the electronic Nationwide Mortgage Licensing System (NMLS) to obtain and manage their new Mortgage Act licenses. The NMLS can be accessed at www.stateregulatoryregistry.org/nmls.
Any mortgage banker, mortgage broker or loan correspondent licensee under Chapter 3 of the MBBCEPA or secondary mortgage lender or secondary mortgage loan broker licensee under the SMLA that holds an existing license granted by the Department of Banking (Department) between July 1 and November 4, 2008 (Existing Licensee), is deemed to have filed a completed license application with the Department, and is therefore granted a corresponding conditional license as a mortgage lender, mortgage broker or mortgage loan correspondent under section 6133(f) of the Mortgage Act effective from 12 a.m. EST November 5, 2008, to 11:59 p.m. EST December 31, 2008 (Transition Period). As such, an Existing Licensee is authorized to conduct the mortgage loan business as a mortgage lender, mortgage broker or mortgage loan correspondent licensee, as applicable, under the Mortgage Act during the Transition Period. During the Transition Period, all Existing Licensees that meet the requirements of the Mortgage Act and have successfully transitioned onto the NMLS will be issued Mortgage Act license certificates, which will expire on December 31, 2009.
Any person who is employed by an Existing Licensee or a licensee under the CDCA as of November 4, 2008, and who is required to be licensed as a mortgage originator under the Mortgage Act (Existing Employee), is deemed to have filed a license application with the Department, and is therefore granted a conditional mortgage originator license under section 6133(f) of the Mortgage Act effective for the Transition Period. As such, an Existing Employee is authorized to conduct the mortgage loan business as a mortgage originator under the Mortgage Act during the Transition Period. During the Transition Period, Existing Employees that have successfully transitioned onto the NMLS, completed a background check satisfactory to the Department and otherwise meet the requirements of the Mortgage Act will be issued conditional license certificates that will expire on December 31, 2009, which licenses will be subject to the condition that the prequalification education and testing requirements of the Mortgage Act are fulfilled by December 31, 2009.
Actual license certificates will not be provided to Existing Licensees or Existing Employees for the Transition Period. Existing Licensees should use their licenses issued under the prior statutes as well as a copy of this Notice to verify their license status until they receive their new Mortgage Act license.
Note that Existing Licensees and Existing Employees that have not successfully transitioned onto the NMLS by December 31, 2008, and completed any applicable background check satisfactory to the Department will lose their authority to conduct the mortgage loan business as conditional licensees under the Mortgage Act after December 31, 2008. Because of this, the Department strongly recommends that all Existing Licensees and Existing Employees complete this transition process by December 15, 2008, in order to avoid any interruption in licensed status.
Questions regarding this Notice should be directed to the Department's Licensing Division at (717) 787-3717 or email@example.com.
[Pa.B. Doc. No. 08-1975. Filed for public inspection October 31, 2008, 9:00 a.m.]
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