Regulatory Alerts2001-06-13
Applicability of Credit Services Organization Provisions to Licensed Mortgage Brokers
The Pennsylvania Department of Banking clarifies that licensed mortgage brokers may provide credit services organization functions as an incidental part of their authorized business under the Mortgage Bankers and Brokers Act and Secondary Mortgage Loan Act. This authorization is strictly conditional upon the broker not charging a separate fee for these services and accepting only the consideration permitted for standard mortgage brokering. The Department explicitly notes that this position is not binding on the Pennsylvania Office of Attorney General, which retains enforcement authority over the Credit Services Act.
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