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. 28, July 13, 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.