Under the Pennsylvania Secondary Mortgage Loan Act (7 Pa. Stat. Ann. §§ 6601 through 6616 [West 2008]), second lien promissory notes and agreements were required to be identified by the following captions:
SECONDARY MORTGAGE LOAN
This Agreement is subject to the provisions of the Secondary Mortgage Loan Act
In addition, open-end credit loans were required to meet certain criteria in order to be considered open-end loans. One criterion was that the loan agreement expressly state that it covers open-end loans pursuant to the Act.
Both our standard second lien promissory note (Cx1070) and quasi-standard HELOC Agreement (Cx1349) for Pennsylvania contain captions or provisions fulfilling these requirements. We have been apprised by a client that the Secondary Mortgage Loan Act has been repealed (see 2008, July 8, P.L. 796, No. 56, § 3[b]) and that, unlike other provisions of the Act which were substantively “transferred” to other sections under the Mortgage Licensing Act (7 Pa. Cons. Stat. Ann. §§ 6101 through 6154 [West 2015]), these requirements are no longer applicable.
We have confirmed this and will proceed to remove both the captions from Cx1070 and the second paragraph of Cx1349.
This change will take effect on August 15, 2015. If you have any questions or concerns, please contact Client Support at 1.800.497.3584.
August 11, 2015