Does the state require a physical location within the state?
Broker and lender entities must maintain a principal office located within the Commonwealth of Pennsylvania manned by at least one W-2 employee.

Is there individual loan officer licensing?
No individual licensing is required for W-2 employees.

What are lenders, brokers and loan officers called?
The terms mortgage broker, mortgage lender and secondary mortgage loan broker’s agent are used in Pennsylvania. A secondary mortgage loan broker's agent (who works exclusively for one secondary mortgage loan broker) is defined as a person who brokers secondary mortgage loans exclusively to one licensed secondary mortgage loan broker, designated as a sponsoring broker and who is not an employee of such sponsoring broker.

Is there state reciprocity across state lines?
As of this writing there is no pre-licensing state reciprocity.

What is the cost of a license? Surety bond? Are there net worth requirements?
The Pennsylvania Department of Banking issues numerous different types of licenses: first mortgage banker, first mortgage broker, secondary mortgage loan lender, secondary mortgage loan broker, and secondary mortgage loan broker's agent.

An applicant for a secondary mortgage loan lender's license is required to have a minimum legal capitalization of $200,000.
An applicant for a secondary mortgage loan broker's license is required to have a minimum legal capitalization of $25,000.
A secondary mortgage loan lender's license will only be issued to a corporate entity.
A secondary mortgage loan broker's license will be issued to either a corporate entity or an individual.
A broker's agent license will only be issued to individuals.

A first mortgage banker license fee of $500 for the principal office and $500 for each branch office location must accompany the license application. The applicant must be a corporation duly registered as a domestic or foreign corporation with the Pennsylvania Secretary of State. The applicant must be approved by at least one of the following agencies: Fannie Mae, Freddie Mac, FHA. The applicant must maintain a line of credit or mortgage-funding capability no less than $1 million. The applicant must have a minimum tangible net worth of $250,000. The applicant must have fidelity bond coverage of at least $300,000. The first mortgage banker license must be renewed each July 1. The renewal fee is currently $350. Each branch will also be assessed a renewal fee of $350 per location per license.

A first mortgage broker license fee of $500 for the principal office and $50 for each branch office location must accompany the license application. Licenses must be renewed by submitting an application yearly by July 1. The annual license fee is $200 for the principal office and $25 for each branch office.

An applicant for a secondary mortgage loan lender's license must submit an application fee of $500 for the principal office and $500 for each branch office. The applicant is required to have a net worth of at least $200,000. The applicant must be a corporation duly registered as a domestic or foreign corporation with the Pennsylvania Secretary of State. Lenders must pay a license renewal fee of $350 for the principal place of business and $350 for each branch by July 1 of each year.

An applicant for a secondary mortgage loan broker's license is required to have a net worth of at least $25,000. The application fee for brokers is $500 for a principal office and $50 for each branch office. A broker's license will be issued to either a corporate entity or an individual. Brokers must pay a license renewal fee of $200 for the principal place of business and $25 for each branch office located in Pennsylvania by July 1 of each year.

The application fee for a secondary mortgage loan broker's agent license is $250. A broker's agent license will only be issued to individuals. A broker's agent must pay a license renewal fee of $200 by July 1 of each year.

Is there a pre-licensing education requirement? Is there a test?
There is no pre licensing education requirement.

Is there a CE requirement?
At least one individual from each licensed location must complete a minimum of six hours of continuing education per year.

Are there different requirements for mortgage brokers and mortgage lenders (i.e. can you broker under a lender license)?
Pennsylvania issues separate mortgage bankers and mortgage brokers licenses.

Are there any state specific high cost loan provisions?
The Pennsylvania Mortgage Bankers And Brokers And Consumer Equity Protection Act became effective June 25, 2002. This act defines a “covered loan” and other terms. It provides for various restrictions on covered loans

The covered loan thresholds in Pennsylvania follows the threshold as defined in Regulation Z:

APR test If the APR at the time of loan closing exceeds by more than 8 percentage points the yield on Treasury securities having comparable periods of maturity as of the 15th day of the month immediately preceding the month in which the loan application is received by the lender, the loan will be considered a high-cost home loan.

Points and fees test The total points and fees payable at or before loan closing will exceed the greater of 8 percent of the total loan amount.