On November 2, 2019, 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, 2020, the base figure definition, adjusted for inflation using the Consumer Price Index, will increase from $256,023 to $260,404 for the 2020 calendar year.
You may access Pennsylvania’s historical base figures here.
Loans equal to or less than the base figure have specific limitations for balloon payments, document preparation fees, impound account, and interest rates. Additionally, transactions with a loan amount less than the base figure may not have a prepayment penalty. DocMagic maintains an audit that will trigger on any transaction in which this occurs. DocMagic’s Compliance Department has updated its compliance matrices and audits to reflect the adjustment.
If you have any questions regarding this article, please contact DocMagic’s Compliance Department.
