Pennsylvania Servicing Reference Guide
- Kacey Olson
| Citation | Topic | Requirement |
| Housing Finance Agency Law / 12 Pa. Code §31.203(a) | Act 91 Notice Take Action to Save Your Home from Foreclosure | This disclosure must be provided at least 30 days prior to commencing foreclosure of a mortgage loan secured by a 1- to 2-family owner-occupied property that is the principal residence of the borrower. This notice should be sent at the point in which the borrower is at least 60 days contractually delinquent in mortgage payments or is in violation of other provisions of the mortgage. (6) The notice shall be sent: (i) By first class mail to the last known address of all homeowners and, if different, the residence which is the subject of the mortgage. (ii) By registered or certified mail. (iii) Without any other information or materials. (iv) If using a window mailing envelope, with either of the following: (A) An addressed single sheet of plain, white paper. (B) A mailing insert containing either the last known address of the homeowner or the residence which is the subject of the mortgage. |
| Pa. R. Civ. P. Rule 3129.1 | Affidavit Prior to Sale | (a) No sale of real property upon a writ of execution shall be held until the plaintiff has filed with the sheriff the affidavit required by subdivision (b) and the notice required by Rule 3129.2 has been served. (b) The affidavit shall set forth to the best of the affiant’s knowledge or information and belief as of the date the praecipe for the writ of execution was filed the name and address or whereabouts of (1) the owner or reputed owner of the real property and of the defendant in the judgment; and (2) every other person who has any record lien on that property; and (3) every other person who has any record interest in that property which may be affected by the sale; and (4) every other person who has any interest in that property not of record which may be affected by the sale and of which the plaintiff has knowledge. |
| Pa. Cons. Stat. Ann. §8103(d) | Deficiency Judgment | (d) Action in absence of petition.--If the judgment creditor shall fail to present a petition to fix the fair market value of the real property sold within the time after the sale of such real property provided by section 5522 (relating to six months limitation), the debtor, obligor, guarantor or any other person liable directly or indirectly to the judgment creditor for the payment of the debt, or any person interested in any real estate which would, except for the provisions of this section, be bound by the judgment, may file a petition, as a supplementary proceeding in the matter in which the judgment was entered, in the court having jurisdiction, setting forth the fact of the sale, and that no petition has been filed within the time limited by section 5522 to fix the fair market value of the property sold, whereupon the court, after notice as prescribed by general rule, and being satisfied of such facts, shall direct the clerk to mark the judgment satisfied, released and discharged. |
| General requirements / 7 Pa. Cons. Stat. Ann. §6121(8)(i) | Insurance Cancellation Following Payoff | (8) If a mortgage loan is paid in full and, in the case of an open-end loan, the mortgage lender is no longer obligated to make future advances to the consumer, the mortgage lender shall do all of the following: (i) Cancel any insurance provided by the licensee in connection with the mortgage loan and refund to the consumer, in accordance with regulations promulgated by the Insurance Department, any unearned portion of the premium for the insurance. |
| PA Mortgage Licensing Act | 7 Pa. Cons. Stat. Ann. §6125(b) | Late Payment Fees-Second Lien Loans | (b) Secondary mortgage loans.--Mortgage lenders engaged in the secondary mortgage loan business may: (iii) charge and collect a delinquency charge of $20 or 10% of each payment, whichever is greater, for a payment which is more than 15 days late. |
| 21 Pa. Cons. Stat. Ann. §721-5 | Mortgage Satisfaction Piece | (d) Penalty for failure to satisfy.-- (1) If, within 60 days of the mortgagee's receipt of: (i) payment of the entire mortgage obligation and all required satisfaction and recording costs; and (ii) the first written request by the mortgagor for the satisfaction piece delivered and in substantially the form described in this section, the mortgagee fails to present for recording to the office where the mortgage was recorded a satisfaction piece as described in section 5 [FN1] or the mortgage is not otherwise satisfied, the mortgagee shall forfeit and pay to the mortgagor a penalty in a sum not exceeding the original loan amount. |
Housing Finance Agency Law / 35 Pa. Cons. Stat. Ann. §1680.402c | Notice of Homeowner's Assistance Program | With respect to a mortgage loan secured by a 1-2 family owner-occupied property that is the principal residence of the borrower, a mortgagee must provide the borrower a notice regarding the availability of mortgage assistance least 30 days prior to accelerating the maturity of the loan, commencing a mortgage foreclosure, or taking possession of any of the borrower's security for the obligation. |
Notice of Intention to Foreclose | The Notice of Intention to Foreclose must be sent to the borrower by registered or certified mail at the borrower's last known address and, if different, at the residence which is the subject of the residential mortgage. The Notice of Intention to Foreclose is not required if the lender has provided the “Act 91 Notice Take Action to Save Your Home from Foreclosure”. | |
| Rules of Civil Procedure / Pa. R. Civ. P. Rule 3129.2 | Notice of Sale - Judicial | A Notice of Sale must be provided prior to the foreclosure sale. The Notice of Sale must be prepared by the plaintiff and must contain: (1) a brief description of the property to be sold, its location, any improvements, the judgment of the court on which the sale is being held, the name of the owner or reputed owner, and the time and place of sale, and (2) a notice directed to all parties in interests and claimants that a schedule of distribution will be filed by the sheriff on a date specified by the sheriff not later than 30 days after sale and that distribution will be made in accordance with the schedule unless exceptions are filed thereto within 10 days after the filing of the schedule. At least 30 days prior to the date of the sale the Notice of Sale must be served on all persons whose names and addresses are set forth in the affidavit. The Notice of Sale must also be posted in the sheriff's office and on the property to be sold at least 30 days prior to the date of the sale. In addition, the Notice of Sale must be published once a week for 3 successive weeks in a newspaper of general circulation in the county where the property is located. The first publication must be made not less than 21 days prior to the date of the sale. |
| Mortgage loan business prohibitions / 7 Pa. Cons. Stat. Ann. §6123(b) | Single Point of Contact | (b) Mortgage loan servicer prohibitions.--A licensee engaging in the mortgage servicer business shall not fail to establish or attempt to establish a single point of contact with whom a borrower can communicate about foreclosure matters or loss mitigation options later than the 36th day of a borrower's delinquency, unless contact is inconsistent with applicable bankruptcy law or court order. |
| Pa. Cons. Stat. Ann. §2304 | Vacant Property Certification Non-Judicial | "(b) Municipal certification.--A mortgaged property shall be deemed vacant and abandoned by the municipality in which the mortgaged property is located if: (1) A creditor requests that the municipal code enforcement officer for the municipality make a determination that the mortgaged property is vacant and abandoned." |
| Pa. Cons. Stat. Ann. §2304 | Vacant Property Certification Judicial | (c) Judicial certification.--A mortgaged property shall be deemed certified as vacant and abandoned in a proceeding as follows: (1) In a proceeding, a creditor or purchaser may file a request with the prothonotary to issue a rule to show cause why the mortgaged property should not be certified as vacant and abandoned by submitting an affidavit: (i) supported as appropriate by images or other appropriate evidence, alleging that the mortgaged property qualifies for certification as vacant and abandoned under the requirements of section 2305; and (ii) submitted subject to the penalties for false swearing under 18 Pa.C.S. § 4903 (relating to false swearing). (iii) The request may be filed together with the original complaint in the proceeding or at any time during the course of the proceeding. |
| Pa. Cons. Stat. Ann. §2306(c) | Vacant Property Certification Sheriff's Sale | c) Scheduling of sheriff's sale.-- (1) If a mortgaged property is certified as vacant and abandoned, upon the request of a creditor or purchaser, the sheriff, on receipt of an accelerated sale fee of $500, shall schedule a sale of the mortgaged property to be conducted no later than 60 days following the filing of the writ of execution and the sheriff's deed must be recorded no later than 30 days following the sale. |