Gov. Tom Wolf in December signed Senate Bill 751 into law. Now Act 81 of 2017, it authorizes the Department of Banking and Securities to license and examine nonbank mortgage servicers. Pennsylvania joins 36 other states that already have similar authority.
The license requirement comes as nonbank servicers continue to see the volume of mortgages they service increase. Nonbank companies had a 7% share of the market in 2012. Their share increased to more than 25% in 2015. According to Secretary of Banking and Securities Robin Wiessmann, issues concerning mortgage servicing have been one of the top complaints received by the department in recent years.
"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"
"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. "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."
Wiessmann said the department expects to accept applications for licenses beginning April 1 through the Nationwide Multistate Licensing System. The deadline for applications is June 30.
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Nonbank mortgage servicers operating in Pennsylvania will soon have to apply for a license to continue doing business in the state.