The Pennsylvania Department of Banking and Securities recently published the annual adjustment to the definition of “base figure” as required by section 101 of the Pennsylvania Loan Interest and Protection Law. Effective January 1, 2021, the base figure definition, adjusted for annual inflation using the Consumer Price Index, will increase from $260,404 to $263,975 for the calendar year.
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’s Compliance Department maintains an audit that will trigger on any transaction in which this occurs.
DocMagic will update its compliance matrices and audits to reflect the adjustment as of the effective date. If you have any questions regarding this article, please contact DocMagic’s Compliance Department.
Historical base figures published by the Pennsylvania Department of Banking and Securities are available here.
