10 Pa. Code § 31.2 - Loans in excess of statutory authorization on one-family residential properties

(a) The limitation of 90% which exceeds the 80% as set forth in section 903 of the act (15 P. S. § 5903(3)) shall be 95% in the case of any loan with respect to which the additional following requirements are met:
(1) The amount of the loan does not exceed the lesser of 95% of the value of the real estate securing the loan, or 95% of the purchase price of the security property.
(2) Not less than the top 20% of such loan shall be insured or guaranteed by a mortgage insurance company which has been approved by the Department and licensed by the Insurance Department of the Commonwealth.
(b) The aggregate of the principal amount of all loans made under § 31.1 (relating to maximum principal amount of loans over 80% of fair market value) which are not insured by a private mortgage guarantee company, exclusive of loans on which the unpaid balance is less than 80% of the fair market value at the date of the making of the loan, and all loans made under the provisions of this section, exclusive of loans with respect to which the unpaid principal balance has been reduced to an amount not in excess of 90% of the value or purchase price of the real estate, whichever is less, determined at the time the loans were made, shall not exceed 30% of the assets of the association.

Notes

10 Pa. Code § 31.2
The provisions of this § 31.2 added May 19, 1972, effective 5/20/1972, 2 Pa.B. 897, amended June 6, 1975, effective 6/7/1975, 5 Pa.B. 1452.

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