State-Chartered Credit Unions
Changes in the Manner Entities May Institute Mortgage Foreclosures
A letter from the Secretary of Banking and Executive Director of the PA Housing Finance Agency regarding the transition from the Act 91 Notice to the Act 6 Notice.
Section 501 – Powers
Short-Term, Small Amount Loans
Deputy Secretary's Letter states that credit unions are preapproved to offer short-term, small amount loans ("STS Loans") in parity with the ability of federally chartered credit unions as authorized by the National Credit Union Administration ("NCUA") pursuant to Section 501(e)(1) and (f) of the Credit Union Code.
SAFE Act Legislation
The letter provides information regarding Act 31 of 2009, House Bill 1654 (P.N. 2448), which amends Pennsylvania’s existing mortgage industry licensing law, 7 Pa.C.S. Chapter 61, in order
to implement the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the “SAFE Act”), 12 U.S.C. § 5101 et seq.
Potential Budget Impasse
Secretary's letter asking banking institutions to show flexibility and understanding toward state employees whose incomes may be temporarily disrupted as the result of a potential budget impasse.
Confidentiality Provisions of the Department of Banking Code
Discusses confidentiality provisions of the Department of Banking Code related to examination reports and enforcement proceedings.
Credit Union System Investment
Deputy Secretary’s Letter states that credit unions that are eligible to participate in the Credit Union System Investment Program (“CU SIP”) announced by the National Credit Union Administration Board (“NCUA”) are pre-approved to borrow from the National Credit Union Administration Central Liquidity Facility (“CLF”) and invest the proceeds from such borrowings in CU SIP Notes consistent with the terms of the CU SIP in parity with the ability of federally-chartered credit unions, notwithstanding the restrictions of Section 511(b) of the Credit Union Code.
Mortgage Reform Laws
Provides detailed explanation of three bills signed into law by Governor Edward G. Rendell on July 8, 2008: Act 56 of 2008, House Bill 2179 (P.N. 4020), the new consolidated mortgage licensing bill (the “Mortgage Act”), Act 57 of 2008, Senate Bill 483 (P.N. 2163), which amends the Loan Interest and Protection Law (the “LIPL”), and Act 58 of 2008, Senate Bill 484 (P.N. 2251), which amends the Department of Banking Code (the “DOB Code”).
Visa Stock Parity
Deputy Secretary Letter stating that Pennsylvania state-chartered credit unions that are eligible members of Visa U.S.A. are pre-approved to receive and retain stock that will be issued by Visa Inc. as part of a corporate restructuring in parity with the ability of federally-chartered credit unions.
Honoring Pennsylvania’s Holocaust Survivors
Acting Secretary Victoria A. Reider sent a letter to chief executive officers of financial institutions across the state urging them to voluntarily waive fees for 456 Pennsylvanians who will receive cash settlements as a result of work by the International Commission on Holocaust Era Insurance Claims.
Volunteer Income Tax Assistance
The Pennsylvania Department of Banking joins with the Federal Deposit Insurance Corporation
in urging you to consider ways that your institution might choose to participate in the IRS’
Volunteer Income Tax Assistance (VITA) program.
Overdraft Protection Programs
Secretary's Letter states that overdraft protection programs are permissible for state-chartered depository institutions and provides guidelines for such programs.
Financial Difficulties Due to the Recent Floods
Secretary's Letter on behalf of Governor Edward G. Rendell, encourage leaders of financial institutions to act with reasonable forbearance toward local governments, individuals and businesses which are experiencing financial difficulties due to the recent floods.
Improperly Influenced Appraisals
The Secretary's Letter informs all lenders and brokers under the jurisdiction of the Department of the Department's concerns related to the use of improperly influenced appraisals. Letter also addresses "builder exception" under the Mortgage Bankers and Brokers and Consumer Equity Protection Act.
Act 207 of 2002 Provides Pennsylvania State-chartered Credit Unions Parity
The Secretary's Letter states that the Act 207 of 2002 provides Pennsylvania state-chartered credit unions parity with federally-chartered credit unions in regard to activities, field of membership requests, and investing in credit union service organizations, subject to a notice requirement.
Act 55 of 2001 Definition of Covered Loan Changes
The Secretary's Letter discusses that the Act 55 of 2001 definition of "Covered Loan" changes effective October 1, 2002; and that “Median Family Income” statistical estimates necessary for lenders to calculate (a) repayment ability of potential obligor under Section 512(b), and (b) whether negative amortization terms may be imposed on a potential obligor under Section 511(c), are now stated in the convenient chart attached to the letter.
Blocking Property & Prohibiting Transactions
Secretary's Letter regarding President Bush's Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism.
Mortgage Bankers & Consumer Equity Protection Act
Secretary's Letter to announce Act 55 of 2001, the Mortgage Bankers and Consumer Equity Protection Act. A summary of Act 55 is attached to the Secretary's letter.
Department Interpretations Regarding Field of Membership Issues
Year 2000 Readiness & Credit Underwriting Criteria
Investment Powers, Standards & Accounting Guidelines for Credit Unions