Rep. Mercuri's bill making it easier to complete mortgage process signed into law

Changing some of Pennsylvania’s antiquated laws can be a laborious process that often takes a backseat to more pressing legislation.

But when the governor issued emergency orders during last year’s coronavirus shut down to prevent a halt in mortgages being issued, a lawmaker from Pine Township saw a chance to scrap an old and unnecessary regulation.

Gov. Tom Wolf signed a bill into law sponsored by state Rep. Rob Mercuri, R-Pine, that eliminates the requirement for mortgage brokers to work out of a licensed location that home buyers must visit to complete the process.

Making the waiver permanent updates the state’s banking code to no longer restrict mortgage origination to within 100 miles of physical branch locations, said Mercuri.

“The opportunity came after the governor created these waivers during the pandemic that made people, including me, start thinking maybe some of these rules aren’t needed in the first place or are outdated,” said Mercuri. “So it was a chance to make the waiver permanent.”

Mercuri, who has a background in finance and serves on the House Commerce Committee, said the waiver that streamlined the process for obtaining a mortgage “just clicked.”

“We learned how to use technology to work remotely during the pandemic,” Mercuri said. “So it makes sense that when it’s possible, we should use technology to make it easier for consumers and businesses when they’re getting a mortgage by not requiring them to drive to a branch office.”

Mercuri noted that nearly half of the state’s residents live in areas where there are no easily accessible branch locations to originate a home loan.

“This will allow for remote mortgage origination to continue and allow Pennsylvania’s mortgage brokers to continue working as they are now, whether remotely or in a licensed location,” he said. “As our economy and business practices change with the times, our laws and regulations must adapt and change as well.”

Commerce Committee Chairman Brad Roae praised the pragmatic approach taken when reviewing whether temporary waivers instituted during the pandemic should become the new norm.

“During the shutdown when regulations were suspended, mortgage work could be done remotely and there were no problems, so we made it permanent,” said Roae, a Republican representing parts of Crawford and Erie counties.