Pennsylvania Code
Title 10 - BANKING AND SECURITIES
Part IV - Bureau of Consumer Credit Agencies
Chapter 46 - PROPER CONDUCT OF LENDING AND BROKERAGE IN THE MORTGAGE LOAN BUSINESS
Section 46.1 - Definitions
Current through Register Vol. 54, No. 12, March 23, 2024
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Advertising-As defined in 12 CFR 226.2(a)(2) (relating to definitions and rules of construction).
Applicant-A person who submits an application for a loan.
Application-As defined in 24 CFR 3500.2(b) (relating to definitions).
Balloon payment-A scheduled loan payment that is more than twice as large as the average of earlier scheduled monthly payments.
CDCA-The Consumer Discount Company Act (7 P. S. §§ 6201-6219).
Consummation-As defined in 12 CFR 226.2(a)(13).
Covered loan-A covered loan as defined in section 503 of the Mortgage Bankers and Brokers and Consumer Equity Protection Act (63 P. S. § 456.503).
Debt obligation-Any amount owed for funds borrowed including interest requirements.
Fixed expenses-Any debt obligations, revolving charge accounts, alimony payments, child support payments, payments under a separate maintenance agreement, housing association fees and property taxes and hazard insurance on the property to be mortgaged, whether or not the property taxes and hazard insurance are required to be escrowed.
Fully amortized payment schedule-An amortizing payment schedule based on the term of the loan.
Fully indexed rate-The index rate plus the margin for the offered loan.
Hazard insurance-Insurance that covers property damage caused by fire, wind, storms and other similar risks.
Income-Gross income as defined in 26 U.S.C. § 61 (relating to definitions).
Index rate-A published interest rate to which the interest rate on a variable rate loan is tied.
Licensee-A licensee broker or lender under the Mortgage Act or CDCA or a partially exempt entity under the Mortgage Act.
Loan-
(i) A mortgage loan or a loan involving a mortgage by a licensee under the CDCA, or both, as the context may require.
(ii) The term does not include a covered loan.
Material change-A change of fact or circumstance that the licensee knows or reasonably should know would substantially affect an applicant's ability to repay the offered loan, including an increase in the interest rate which would require a disclosure under 12 CFR 226.17(f)(2) (relating to general disclosure requirements).
Margin-The number of percentage points a lender adds to the index rate to calculate the interest rate at each adjustment period on variable rate loans.
Mortgage Act-7 Pa.C.S. §§ 6101-6153 (relating to mortgage loan industry licensing and consumer protection).
Mortgage loan-As defined in section 6102 of the Mortgage Act (relating to definitions).
Mortgage loan business-The mortgage loan business as defined in section 6102 of the Mortgage Act and any kind of mortgage lending or brokering activity conducted by a licensee under the CDCA.
Person-A person as defined in section 6102 of the Mortgage Act and section 2 of the CDCA (7 P. S. § 6202), as applicable.
Property taxes-The taxes assessed, or a reasonable estimate of the taxes to be assessed, on the property being mortgaged based upon the full value of the property and any improvements thereon.
Reverse mortgage-A loan that is a reverse mortgage transaction as defined in 12 CFR 226.33(a) (relating to requirements for reverse mortgages).
Variable rate loan-A loan where the interest rate varies over the term of the loan.
