PA Adjusts Definition of “Base Figure” in Its Loan Interest and Protection Law

On November 2, 2019, the Pennsylvania Department of Banking and Securities (the Department) adjusted the definition of “base figure” in the Pennsylvania Loan Interest and Protection Law.

The Pennsylvania Loan Interest and Protection Law requires annual adjustment of the base figure definition to account for inflation.  The Department determined that the current base figure of $256,023, when adjusted for annual inflation using the Consumer Price Index, should be increased to $260,404 for the 2020 calendar year.  The base figure is used to determine residential mortgage loans that are exempt from the maximum interest rate restrictions under the Pennsylvania Loan Interest and Protection Law.  The revised base figure definition will go into effect on January 1, 2020.