NewsAssociation News, Government Affairs
Secretary Moyer addresses RealtorsĀ® in Harrisburg
Lenders taking a āsit tight and seeā approach are not helping the overall economic picture, according to Glenn Moyer, PA Secretary of Banking.
Moyer, who spoke during PARās Public Policy and Political Affairs Seminar this week in Harrisburg, said, āAnything we can do to help eliminate uncertainty ā on the business or regulatory side ā will help us overcome the sit-tight-and-see mentality and be helpful for our economic recovery.ā
Moyer addressed the stateās Mortgage Licensing Act and the federal Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act). The latter required all states to adopt a standard of licensing, indicating that making mortgage loans needs to be āhabitual or repeatedā in order to trigger a licensing agreement. The federal regulations did not define a minimum.
āWith feedback and input from your industry and others, the Department of Banking took this position on the āseller financingā issue: it is permissible for an individual to make or broker as many as three mortgage loans annually without needing to be licensed,ā Moyer said. āLegislation has been developed and will be introduced soon that would make the requirement statutory.ā
Other amendments proposed by the Department of Banking include:
- Exempting nonprofit corporations, such as Habitat for Humanity, from licensing requirements
- Easing branch licensing requirements to permit more business to occur outside of branch offices
- Eliminating the requirement that loan originators be W-2 employees of the mortgage lender or broker
- Clarifying provisions inserted into the Act in 2008 and 2009 that proved to be impediments to the mortgage business.
Moyer provided an update on the recent $25 billion settlement-in-principle with the nationās five largest mortgage services over questionable service and foreclosure practices. āThe settlement calls for as much as $266 million coming to Pennsylvania for loan modifications, refinance assistance and other homeowner relief,ā he said. āAbout $66 million of this total will come in the form of a direct payment to the Attorney Generalās office.ā
While the settlement agreement is not final, Moyer said Gov. Tom Corbett, Pennsylvania Attorney General Linda Kelly and Moyer support sending the majority of the $66 million to the Homeownersā Emergency Mortgage Assistance Program (HEMAP).
Moyer concluded his presentation, āAs our economy recovers, we must recognize that the traditional business models that have dominated borrowing and lending are changing, just as other businesses are also adjusting to what has become known as āthe new normal.ā In the new normal for financial services, we know that loan demand will start growing and the housing market will find a bottom and begin to rise again.ā
Kim Shindle is the Manager of Media Relations at the Pennsylvania Association of RealtorsĀ®.