On November 4, 2023, the Pennsylvania Department of Banking and Securities published the annual adjustment to the definition of “base figure” in the Pennsylvania Loan Interest and Protection Law. Effective January 1, 2024, the inflated-adjusted base figure for the 2024 calendar year will increase from $301,022 to $312,159.
The Pennsylvania Loan Interest and Protection Law requires the base figure definition, found in 41 Pa. Stat. § 101, to be adjusted annually for inflation. The adjusted amount is determined using the Consumer Price Index published by the United States Department of Labor, Bureau of Labor Statistics.
The base figure is used to determine when residential mortgage loans are exempt from the maximum interest rate restrictions under the Pennsylvania Loan Interest and Protection Law. Additionally, transactions with a loan amount less than the base figure may not have a prepayment penalty. DocMagic maintains a prepayment penalty audit that triggers on any loan transaction in which this occurs.
DocMagic will update its compliance matrix and audit to reflect the base figure adjustment effective January 1, 2024. If you have any questions regarding this article, please contact DocMagic’s Compliance Department.
