Pennsylvania Code & Bulletin

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The Pennsylvania Code website reflects the Pennsylvania Code changes effective through 53 Pa.B. 6142 (September 30, 2023).

10 Pa. Code § 39.6. Retail purchase money financing.

§ 39.6. Retail purchase money financing.

 Any association may, after having complied with the provisions of §  39.2 (relating to Motor Vehicle Sales Finance Company License), invest in any third-party retail mobile home chattel paper and may, without such license, invest in mobile home chattel paper by making direct loans to mobile home consumer-purchasers; provided that the association’s investment is insured or guaranteed or that the association has a commitment for such insurance or guarantee under the provisions of the National Housing Act, 12 U.S.C.A. § §  1701—1750 jj, or 38 U.S.C.A. § §  1801—1827, if arrangements have been made for satisfactory local servicing of such chattel paper. If the proviso set forth in the immediately preceding sentence is not met, any association may still invest in mobile home chattel paper under this section, but only if the following conditions are met:

   (1)  The monetary obligation evidenced by such chattel paper is incurred to finance the purchase of a mobile home.

   (2)  The mobile home is to be maintained as a residence of the purchaser or a relative of the purchaser.

   (3)  The mobile home is located at the time of such purchase, or is to be located within 90 days thereof, at a mobile home site or other semi-permanent home site within the association’s regular lending area as set forth in §  39.4(1) (relating to inventory financing).

   (4)  The monetary obligation evidenced by such chattel paper does not exceed either of the following amounts:

     (i)   100% of the manufacturer’s invoice price of any new mobile home plus 100% of the invoice price of the manufacturer of any new equipment installed or to be installed by the dealer.

     (ii)   75% of the fair market value of any used mobile home including any installed equipment.

   (5)  The promissory note secured by retail mobile home chattel paper is to be paid in substantially equal monthly installments over 20 years or less.

   (6)  The loan amount excluding time-price differential or interest however computed does not exceed 90% of total costs of the buyer including freight, itemized set-up charges, sales or other taxes, and filing or recording fees imposed by law. Insurance premiums may be financed for customary physical damage insurance on the mobile home for an initial policy term not to exceed five years. Insurance premiums may be financed for credit life and accident and health insurance.

   (7)  Appraisals of used mobile homes shall substantiate that the home is expected to retain its value as security for the loan over the loan term.


   The provisions of this §  39.6 issued under sections 103(a)(viii) and 1415(c) of the Banking Code of 1965 (7 P. S. § §  103(a)(viii) and 1415(c)).


   The provisions of this §  39.6 amended through August 1, 1980, effective August 2, 1980, 10 Pa.B. 3185. Immediately preceding text appears at serial page (49556).

Cross References

   This section cited in 10 Pa. Code §  39.8 (relating to purchase of participation interests in mobile home chattel paper).

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