42 Pa. C.S.A. § 8144 says, in part:
“In addition to any other indebtedness, a mortgage may secure…advances made under a construction loan to enable completion of the improvements for which the construction loan was originally made, if such mortgage states that it shall secure such unpaid balances.”
Pursuant to this statute, Docutech prints a notice on the first page of our PA Mortgage (Cx347) for “Construction Only” and “Construction to Permanent” loans. We have altered the language of the notice slightly to more closely reflect the language of the statute.
Also, 7 Pa. C.S.A. § 6122(a)(4) reads, in part:
“If the consumer elects to obtain property insurance through the licensee, the consumer shall consent thereto in writing, and the insurance shall be obtained from an insurance company authorized by the laws of this Commonwealth to conduct business in this Commonwealth. Any benefit or return to the licensee from the sale or provision of property insurance shall not be included in the computation of the maximum charge authorized for mortgage loans under this chapter and shall not be deemed a violation of this chapter when the insurance is written pursuant to the laws of this Commonwealth governing insurance.”
Accordingly, Docutech has added language to our Pennsylvania version of our Cost of Insurance Disclosure (Cx16488) that allows a lender to track consent when a borrower elects to obtain property insurance through the lender. We have also added the premium amount that the borrower will pay for the lender-provided property insurance.
These changes will be in effect on October 24, 2017. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.