Banking bill restores seller financing

Seller financing for less than four mortgage loans in a year will be restored as the legislature approved House Bill 1124 (Scavello-R) last week. This will take effect in 60 days.

Under the 2008 version of the Pennsylvania’s Mortgage Licensing Law, those issuing less than three mortgages in a calendar year were not required to be licensed. An amendment in 2009 removed the “less than three” exception and limited mortgage loans to between immediate family members.

“The Pennsylvania Association of Realtors® has supported HB 1124 because it would allow for greater flexibility in financing options for homebuyers,” said Bette McTamney, PAR president. “Those who want to negotiate more than a few mortgages annually should still be licensed.”

Scavello spoke to Realtors® in the spring, saying his banking bill would restore seller financing to its original intent, allowing a person to originate, offer, negotiate or service less than four mortgage loans in a year.

“We’re happy to have worked with Rep. Scavello (R-Monroe) on this bill. He’s been a real champion on this issue for Realtors®,” McTamney said.