Regulatory Alerts2002-11-05
Pennsylvania Department of Banking Opinion on Internet Service Provider Private Label Mortgage Services
The Pennsylvania Department of Banking determined that an internet service provider acting as a private label mortgage service provider must obtain licenses under the Mortgage Bankers and Brokers and Consumer Equity Protection Act and the Secondary Mortgage Loan Act. The Department concluded that the provider's activities of advertising, soliciting, and arranging loans for lenders constitute mortgage brokering, requiring a mortgage broker license under the former act and a secondary mortgage lender license under the latter act for loan purchases. Additionally, the Department mandated that any licensed entity must establish a full-time office in Pennsylvania and reserved the right to object to the lenders' safety and soundness practices.
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