Pennsylvania Partially Exempt Mortgage Branch Registration

Who is required to have this license? The Pennsylvania Mortgage Licensing Act (7 Pa.C.S. § 6101 et seq.) requires a license for any person or company who engages in the mortgage loan business by directly or indirectly negotiating or placing loans for others in the primary market for consideration. This registration is available for any place of business, other than the principle place of business, which is entity exempt from a mortgage business licensing requirement but has employees that are licensed or registered mortgage originators. Partially exempt business entities carrying a bond covering their mortgage originators must file an annual report through NMLS, and therefore must be registered as a "Partially Exempt Mortgage Company" on NMLS. There is no state registration fee associated with using NMLS for this registration. Examples are provide below of business entities that are partially exempt from licensure but must either maintain bond coverage for its mortgage originators and file an annual report with the Department through NMLS or demonstrate in a form acceptable to the Department that all mortgage originators employed by the entity have obtained and maintained bond coverage • • affiliates of banking institutions or state and federally chartered credit unions • subsidiaries of credit unions (not required to provide bond coverage for registered mortgage originators) • consumer discount companies • A bona fide nonprofit organization and employees of the organization acting within the scope of their employment. • An installment seller of, or holder of installment sales contracts secured by, manufactured homes who is licensed under the act of June 28, 1947 (P.L.1110, No.476), known as the Motor Vehicle Sales Finance Act, 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. • A non-originating person, unless otherwise deemed to be engaged in the mortgage loan business by the department, Who does not need this registration? Examples fohllow of entities that are completely exempt from the MLA’s mortgage licensing requirement, including the requirement of licensing their mortgage originators: • attorneys at law who do not hold themselves out to the public as engaging in the mortgage loan business and who are not compensated by a company or individual in the mortgage business • banking institutions and credit unions; however, their employed mortgage originators must register (not license) through NMLS according to regulations to be issued by federal regulatory agencies • registered mortgage loan originators who are employees of banking institutions, credit unions or their subsidiaries • loan processors and underwriters performing clerical or supportive functions if employed by a mortgage licensee or entity exempt from licensure • employees of a mortgage business who only re-negotiate existing mortgage loans held or serviced by his or her employer unless determined otherwise by HUD or a court of competent jurisdiction • an individual or entity solely involved in offering to make or negotiating extensions of credit relating to timeshare plans • A person who originates or negotiates less than four mortgage loan s in a calendar year, unless determined to be engaged in the mortgage loan business by the department. • 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, and employees thereof acting within the scope of their employment. • 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 other governmenant housing finance agencies, and employees thereof acting within the scope of their employment. A separate branch license will be required for every location where mortgage loan business activities are conducted outside the company’s principal place of business. 7 Pa.C.S. § 6131(a.1)

GENERAL INFORMATION Activities Authorized Under This License This license authorizes the following activities… • First mortgage brokering • Second mortgage brokering • Home equity lines of credit • Reverse mortgage brokering • Third party mortgage loan processing • Third party mortgage underwriting • Lead generation • Mortgage loan modifications Pre-Requisites for License Applications • Be approved as a Pennsylvania Partially Exempt Mortgage Registrant; or • Have a pending Pennsylvania Partially Exempt Mortgage company registration application. Bond: Bond Amount Anticipated or Actual Amount of PA Mortgage Loan Originations $100,000 $29,999,999.99 or less $200,000 $30,000,000 - $99,999,999.99 $300,000 $100,000,000 – $249,999,999.99 $500,000 $250,000,000 or more Pennsylvania does not issue paper licenses for this license type.