Nonbank mortgage servicers have five months to get licensed in the state of Pennsylvania if they want to keep operating in the state.
The Pennsylvania Department of Banking and Securities announced this week that it will soon begin accepting licensing applications from nonbank servicers as part of the state’s move to increase oversight into mortgage servicing.
The licensing requirement comes as part of Pennsylvania Senate Bill 751, which Gov. Tom Wolf signed into law on Dec. 22, 2017.
The law “authorizes the Department of Banking and Securities to license and examine nonbank mortgage servicers to help ensure the rights of homeowners are protected,” an announcement from the state said.
The law, which amends the state’s Mortgage Licensing Act, incorporates current federal standards for mortgage servicing that are already in use by 36 other states.
“I was proud to sign this legislation to help protect homeowners from wrongful foreclosures by ensuring companies follow Pennsylvania law and giving the Department of Banking and Securities more tools to respond to and resolve consumer complaints,” Wolf said in a statement. “Owning a home is part of the American dream and this law is an important step to help homeowners as they achieve that dream in our commonwealth.”
Pennsylvania Secretary of Banking and Securities Robin Wiessmann said that complaints about mortgage servicing have been on the rise in recent years, which drove the state to enact the new law.
“Mortgage servicing is a critically important presence in a homeowner's life. Governor Wolf and I want homeowners to succeed and we also want the mortgage servicing industry to succeed in Pennsylvania,” Wiessmann said.
“We believe in smart regulation, not regulation for the sake of regulation,” Wiessmann added. “At the Department of Banking and Securities, we welcome questions and discussions, and we strive to be firm, fair, and consistent.”
According to Wiessmann, the state banking department expects to begin accepting license applications for non-bank mortgage servicers by April 1, 2018, through the Nationwide Multistate Licensing System.
The deadline for licensing applications is June 30, 2018, meaning nonbank servicers have five months to get their applications in.