The Pennsylvania Department of Banking and Securities (the Department) recently announced it will adjust the definition of “base figure” in the Pennsylvania Loan Interest and Protection Law for the 2021 calendar year.
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 $260,404, when adjusted for annual inflation using the Consumer Price Index, should be increased to $263,975 for 2021. 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, 2021.