Governor signs bill to restore seller financing

Pennsylvania Association of Realtors® representatives were on hand as Gov. Tom Corbett reinstated seller financing yesterday. The banking bill, sponsored by Rep. Mario Scavello (R-Monroe), restores seller financing for less than four mortgage loans in a year and will take effect September 1. A 2009 amendment to the state’s Mortgage Licensing Law removed a “less than three” exception and limited seller financing loans to between immediate family members.

“I truly believe that this new law is vital to our real estate industry because it allows for greater flexibility in financing options for Pennsylvania taxpayers and homeowners,” said Scavello. “The law restores the ability of an individual to originate, negotiate or service mortgage loans on a limited basis and will allow an individual to make or broker three or fewer mortgage loans in a calendar year without being licensed as a mortgage originator.”

PAR President Bette McTamney said, “In this more challenging lending climate, seller financing offers more financing options for our clients. Ultimately this will help more consumers buy homes and it will be helpful to the builder and investor markets.”

McTamney said Realtors® who want to negotiate more than three mortgages annually are still required to be licensed as a mortgage broker.

“We’re thankful for Rep. Scavello’s continued support and working with Realtors® on this issue,” McTamney added.

“I was glad to be able to help,” Scavello said. “This new law will definitely help to sell more real estate. Thanks to PAR for bringing the issue to my attention. I’m proud to have played a role in securing this victory.”

Realtors® attending the signing were: PAR President Bette McTamney, PAR President-Elect Kim Skumanick, PAR Treasurer Todd Polinchock, PAR Legislative Chair and Past President Don Roth, PAR Past President Bob Hay and Pocono Mountains Association President Eileen Chaladoff.

[Update 10:18 a.m.] View all of the photos from our day on Facebook.