The Anatomy of Mortgage Banking Regulations - Part 2

* Strictly observe loan transaction prohibitions

-warn, implied or explicit, the applicant that his income is irrelevant to the loan application process -suggest, implied or explicit, that the applicant can fail to pay his financial obligation -suggest, recommend by any means to refinance an existing loan or enter into a new loan transaction without subjecting the same applicant to analysis and evaluation of his ability to repay -to offer an applicant a covered loan without informing him of other loans that the applicant is qualified to avail -advise the applicant, implied or explicit, to ignore any disclosure or agreement stipulations or to hint that a document is immaterial -to have any participation in the improper execution of any loan transaction -to encourage, hint, or suggest an applicant to enter misleading or false information -to inappropriately influence an appraiser or any entity involved with the loan transaction -get loan insurance without giving the applicant the chance to get his insurance on his own -charge unlawful fees for notices or disclosures -pay and receive compensation from any unauthorized and unlicensed entity in the mortgage business -give legal advice to the applicant

* Strictly follow commitment and agreement in the disbursement of loan proceeds * Provide borrowers/applicants with all the necessary documentation * Provide borrowers with statement of payoff or statement of reinstatement as necessary * Corresponding sanctions for violations

The Department of Banking recommends that borrowers should know all necessary and vital information prior to obtaining a mortgage loan. They should transact and do business with banking institutions or lenders that they most trust and have great confidence in. In as much as the Pennsylvania’s Banking Regulations seeks to protect them, borrowers should also exercise all measures to protect themselves.

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