House Bill 1588 recently passed the state Senate and now heads back to the House for concurrence.
The Remote Mortgage Banking Bill would modernize the state’s banking code to no longer restrict mortgage originations to within 100 miles of physical branch locations.
Under current law, mortgage brokers must work out of a licensed physical location. Gov. Tom Wolf issued emergency orders during the pandemic, temporarily waiving the requirement to work from a licensed location. The bill would make the waiver permanent.
Nearly half of the Pennsylvanians live without a readily accessible physical branch location.
“As our economy and business practices change with the times, our laws and regulations must adapt and change as well,” state Rep. Rob Mercuri (R-Allegheny), who wrote the bill, said. “This will allow Pennsylvania to not only continue to grow, but it will make our business environment more competitive and more efficient. I would like to thank my colleagues in both chambers for joining me in support of this critical legislation.”
The bill also would modify Title 7 of the Pennsylvania Consolidated Statutes to further provide license requirements, exceptions to license requirements, powers conferred on certain licensees engaged in the mortgage loan business, and mortgage loan business prohibitions.