Johnson, E. v. Phelan Hallinan & Schmieg ( 2018 )


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  • J-A30019-17
    NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37
    EDELLA JOHNSON (A/K/A EDELLA               :    IN THE SUPERIOR COURT OF
    ROBINSON A/K/A EDELLA ROBINSON             :         PENNSYLVANIA
    JOHNSON), ERIC JOHNSON,                    :
    INDIVIDUALLY AND ON BEHALF OF              :
    OTHER SIMILARLY SITUATED                   :
    FORMER AND CURRENT                         :
    HOMEOWNERS IN PENNSYLVANIA.                :
    :
    Appellants          :    No. 359 WDA 2017
    :
    :
    v.                          :
    :
    :
    PHELAN HALLINAN & SCHMIEG, LLP             :
    Appeal from the Order February 6, 2017
    In the Court of Common Pleas of Allegheny County Civil Division at No(s):
    GD-12-005395
    BEFORE: BOWES, J., STABILE, J., and FORD ELLIOTT, P.J.E.
    MEMORANDUM BY BOWES, J.:                           FILED NOVEMBER 28, 2018
    EdElla Johnson (a/k/a EdElla Robinson a/k/a EdElla Robinson Johnson)
    and Eric Johnson, individually and on behalf of other similarly-situated
    former   and        current   homeowners   in   Pennsylvania   (collectively   “the
    Johnsons”), appeal from the February 6, 2017 order sustaining the
    preliminary objections in the nature of a demurrer filed by Phelan Hallinan &
    Schmieg, LLP (“Phelan”). We affirm.
    The certified record reveals the following.        On May 23, 2002, the
    Johnsons executed a mortgage and associated promissory note in the
    amount of $74,000. The mortgage was secured by property located at 636
    J-A30019-17
    Collins Avenue, Pittsburgh, Allegheny County.1          That instrument was duly
    delivered, recorded, and subsequently assigned to the Bank of New York
    Mellon Trust Company (“Mellon”).
    In December 2008, the Johnsons defaulted on the mortgage.              On
    March 31, 2009, Mellon, through its counsel, Phelan, filed a complaint in
    mortgage foreclosure. In the complaint, Mellon asserted, inter alia, that the
    Johnsons owed $1,300 in attorney fees. After a non-jury trial, the trial court
    found in favor of Mellon.        The Johnsons appealed that decision, and this
    Court affirmed.      Bank of New York Mellon Trust Co., Nat’l Ass’n v.
    Johnson, 
    170 A.3d 1261
    (Pa.Super. 2017) (unpublished memorandum).
    On March 23, 2012, while the foreclosure action was pending, the
    Johnsons initiated the instant class action against Phelan.              In their
    complaint, the Johnsons alleged, inter alia, that Phelan violated section 406
    of the Pennsylvania Loan Interest and Protection Law, 41 P.S. §§ 101 et seq.
    (“Act 6”), by pursuing an award of attorney fees in the mortgage foreclosure
    action that were not actually incurred.2         The Johnsons argued further that
    ____________________________________________
    1The note was executed solely by Mr. Johnson. The mortgage was executed
    by both Mr. and Mrs. Johnson.
    2 Article IV of Act 6 contains the statute’s protective provisions. Section 406
    of the Act limits the attorney’s fees that a “residential mortgage lender” may
    recover from a “residential mortgage debtor,” and provides as follows:
    With regard to residential mortgages, no residential mortgage
    lender shall contract for or receive attorney’s fees from a
    residential mortgage debtor except as follows:
    (Footnote Continued Next Page)
    -2-
    J-A30019-17
    the same harm had been suffered by other former and current Pennsylvania
    homeowners against whom Phelan had filed foreclosure complaints.           In
    reliance on section 502 of Act 6,3 which provides remedies for violations of
    section 406, the Johnsons claimed that they and other similarly-situated
    mortgagors were entitled to treble damages for excess attorney fees
    assessed by Phelan.
    Phelan filed preliminary objections in the nature of a demurrer,
    contending that section 406 applies solely to “residential mortgage lenders,”
    (Footnote Continued) _______________________
    (1)    Reasonable fees for services included in actual settlement
    costs.
    (2)    Upon commencement of foreclosure or other legal action
    with respect to a residential mortgage, attorneys’ fees
    which are reasonable and actually incurred by the
    residential mortgage lender may be charged to the
    residential mortgage debtor.
    (3)    Prior to commencement of foreclosure or other legal action
    attorneys’ fees which are reasonable and actually incurred
    not in excess of fifty dollars ($50) provided that no
    attorneys’ fees may be charged for legal expenses incurred
    prior to or during the thirty-day notice period provided in
    section 403 of this act.
    41 P.S. § 406.
    3 Article V of Act 6 provides remedies to “residential mortgage debtors” who
    have been charged excessive costs and fees. Section 502 of the Act
    provides, in relevant part: “a person who . . . has paid charges prohibited or
    in excess of those allowed by this act . . . may recover triple the amount of
    such excess . . . charges in a suit against the person who has collected such
    excess . . . charges . . ..” 41 P.S. § 502.
    -3-
    J-A30019-17
    and not to their foreclosure counsel.     On May 2, 2012, the trial court
    sustained Phelan’s preliminary objections, and consolidated the matter for
    appeal with another case raising similar issues, Glover v. Udren Law
    Offices, P.C., docketed in the Allegheny County Court of Common Pleas at
    GD-11-18015.
    In the consolidated appeal, this Court affirmed the trial court’s order,
    and determined that a “residential mortgage debtor” can only maintain a
    cause of action for a violation of section 406 against a “residential mortgage
    lender,” and not against their foreclosure counsel.   Glover v. Udren Law
    Offices, P.C., 
    92 A.2d 24
    , 28 (Pa.Super. 2014).           Subsequently, the
    Pennsylvania Supreme Court reversed, holding that foreclosure counsel
    constituted a “person” for purposes of section 502, and, thus, “a borrower
    may recover under [s]ection 502 from any entity — not solely the residential
    mortgage lender — that collects excessive attorney’s fees in connection with
    a foreclosure.”   Glover v. Udren Law Offices, P.C., 
    139 A.3d 195
    , 200
    (Pa. 2016). However, the High Court offered no opinion regarding the term
    “collected,” as used in section 502, and remanded the matter for further
    proceedings. 
    Id. at 201.
    On remand, Phelan again filed preliminary objections in the nature of a
    demurrer. However, for the first time, it asserted that the Johnsons were
    barred from pursuing relief under Act 6 because their $74,000 mortgage did
    not qualify as a “residential mortgage” under section 101 of the Act, as their
    mortgage exceeded the $50,000 statutory limit in effect at the time it was
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    executed in 2002.4 The Johnsons maintained that the court should apply the
    version of section 101 in effect in 2009, at the time the foreclosure action
    was commenced, which raised the limit for a “residential mortgage from
    $50,000 to $217,873.5         On November 30, 2016, the trial court sustained
    Phelan’s preliminary objection based on collateral estoppel.    The Johnsons
    filed a motion for reconsideration, which Phelan opposed, and the Johnsons
    filed a reply in support of their motion.            The trial court granted
    reconsideration so that the three remaining preliminary objections could be
    ruled upon.       On February 6, 2017, the trial court sustained the first
    preliminary objection on the basis that the version of section 101 in effect at
    the time the mortgage was executed was controlling, and the Johnsons were
    precluded from bringing an action against Phelan under Act 6 because their
    ____________________________________________
    4 Section 101 of Act 6 provides all of the definitions through which Act 6 is
    interpreted. In 2002, when the Johnsons executed their mortgage, section
    101 defined a “residential mortgage,” in pertinent part, as “an obligation to
    pay a sum of money in an original bona fide principal amount of fifty
    thousand dollars ($50,000) or less, evidenced by a security document and
    secured by a lien upon property located in this Commonwealth[.]” 41 P.S.
    § 101 (as amended April 6, 1979, effective until September 7, 2008).
    5 In 2008, section 101 was amended, and the term “residential mortgage”
    was redefined as “an obligation to pay a sum of money in an original bona
    fide principal amount of the base figure or less, evidenced by a security
    document and secured by a lien upon property located in this
    Commonwealth[.]” 41 P.S. § 101 (as amended September 8, 2008). The
    amended statute defined “base figure” as “two hundred seventeen thousand
    eight hundred seventy-three dollars ($217,873), as adjusted annually for
    inflation by the department through notice published in the Pennsylvania
    Bulletin.” 
    Id. -5- J-A30019-17
    mortgage was not a “residential mortgage” under the Act.6            In so finding,
    the trial court determined that, when the legislature amended section 101 in
    2008, it did not manifest an intent that the amendment apply retroactively.
    See Trial Court Opinion, 2/6/17, at 2.           The trial court observed that this
    conclusion was supported by the reasoning employed in two federal district
    court cases, Murphy v. Bank of America, N.A., 
    2016 WL 1020969
    (E.D.
    Pa., March 14, 2016),7 and Trunzo v. Citi Mortg., 
    43 F. Supp. 3d 517
    (W.D.
    Pa. 2014),8 which it found persuasive. See Trial Court Opinion, 2/6/17, at
    2.
    The Johnsons filed a timely notice of appeal. Since the trial court did
    not order the Johnsons to file a Pa.R.A.P. 1925(b) concise statement of
    errors complained of on appeal, the court did not isssue a Pa.R.A.P. 1925(a)
    ____________________________________________
    6  The trial court determined that, based upon its ruling on the first
    preliminary objection, the remaining preliminary objections were moot. See
    Trial Court Opinion, 2/6/17, at 3.
    7 In Murphy, the United States District Court for the Eastern District of
    Pennsylvania held that a mortgage executed in 2006 for $53,200 was not a
    “residential mortgage” under Act 6, because the 2008 amendment to the Act
    did not apply retroactively. In so ruling, the district court determined that
    because “the Pennsylvania General Assembly made no clear and manifest
    intention to make the 2008 Act 6 amendments retroactive, we must apply
    the definition of ‘residential mortgage’ as it existed in 2006.” 
    Murphy, supra
    at *5-7.
    8 In Trunzo, the United States District Court for the Western District of
    Pennsylvania held that a mortgage executed in 2007 for $69,900 was not a
    “residential mortgage” under Act 6, because the 2008 amendment to the Act
    did not apply retroactively. 
    Trunzo, supra
    at 535-37.
    -6-
    J-A30019-17
    opinion, and instead entered an order indicating its reliance on its February
    6, 2017 opinion and order. This matter is now ready for our review.
    The Johnsons raise five questions for our consideration:
    1. Did the prior decisions of the Pennsylvania appellate courts,
    and the Pennsylvania agencies that were delegated by the
    Legislature to regulate Act 6, as amended in 2008[,]
    erroneous[ly] interpreted [sic] the statutory language of new
    Act 6?
    2. Did the lower court err when it concluded that a district court
    decision discussing considerably different issues under Act 6
    enacted in 1974, as amended, with respect to quite different
    loan transactions[,] constitute error as a matter of law?
    3. Did the lower court err in holding that the general rule that
    contracts cannot be regulated apply [sic] to the contracts of
    highly regulated banks engaged in mortgage financing?
    4. Did the lower court err in holding that the general rule that
    the attorney fee terms of a contract cannot be regulated
    although the Pennsylvania Supreme Court held that, because
    an attorney has no vested rights in the attorney fee terms,
    they can be regulated?
    5. Did the lower court err when it failed to follow Supreme
    [C]ourt’s earlier mandate and remand in 
    [Glover, supra
    ]?
    Appellants’ brief at 2.9
    ____________________________________________
    9   Notably, the issues raised in the Johnsons’ statement of the questions
    involved do not correspond to the headings included in their brief. Further,
    upon a thorough review of the record, including all of the Johnsons’ written
    filings and the notes of testimony of the October 31, 2016 hearing, we
    conclude that their third and fourth issues were not raised before the trial
    court, and are therefore waived. See Pa.R.A.P. 302(a) (“Issues not raised is
    the lower court are waived and cannot be raised for the first time on
    appeal.”). Although the Johnsons made a brief reference to the contracts
    (Footnote Continued Next Page)
    -7-
    J-A30019-17
    Our scope and standard of review following a trial court’s ruling on
    preliminary objections in the nature of a demurrer is well settled:
    Our standard of review of an order of the trial court
    overruling or [sustaining] preliminary objections is to determine
    whether the trial court committed an error of law.          When
    considering the appropriateness of a ruling on preliminary
    objections, the appellate court must apply the same standard as
    the trial court.
    Preliminary objections in the nature of a demurrer test the
    legal sufficiency of the complaint. When considering preliminary
    objections, all material facts set forth in the challenged pleadings
    are admitted as true, as well as all inferences reasonably
    deducible therefrom.      Preliminary objections which seek the
    dismissal of a cause of action should be sustained only in cases
    in which it is clear and free from doubt that the pleader will be
    unable to prove facts legally sufficient to establish the right to
    (Footnote Continued) _______________________
    clause in their reply in support of motion for reconsideration, the reference
    was insufficient to preserve the issue for our review. See Prince George
    Ctr. v. United States Gypsum Co. (In re Prudential Ins. Co. of Am.),
    
    704 A.2d 141
    , 145 (Pa.Super. 1997) (holding that issues raised initially in a
    petition for reconsideration are beyond the scope of appellate jurisdiction
    and declining to consider them on appeal); Meyer-Chatfield Corp. v. Bank
    Fin. Servs. Grp., 
    143 A.3d 930
    , 938 n.4 (Pa.Super. 2016) (holding that
    raising an issue for the first time in a motion for reconsideration does not
    rescue that issue from waiver). Contrary to the Johnsons’ representation
    therein that the contracts clause had been “discussed in previous briefings,”
    we can find no other reference to it in the record before us. Notably, in the
    Statement of the Case included in their brief, the Johnsons do not specify
    the place in the record where this issue was raised before the trial court and
    preserved for our review. See Pa.R.A.P. 2117 (c) (requiring, inter alia, the
    appellant to specify in the statement of the case “[t]he state of the
    proceedings in the court of first instance . . . at which, and the manner in
    which, the questions sought to be reviewed were raised[,] . . . [t]he method
    of raising them[,]        . . . [and] the way they were passed upon by the
    court.”). Finally, the Johnsons’ fifth issue is not addressed in their appellate
    brief; therefore, it is waived on appeal. See Pa.R.A.P. 2119(a) (stating that
    the parties’ briefs must include a discussion of each question raised on
    appeal and a citation of authorities as are deemed pertinent).
    -8-
    J-A30019-17
    relief. If any doubt exists as to whether a demurrer should be
    sustained, it should be resolved in favor of overruling the
    preliminary objections.
    Feingold v. Hendrzak, 
    15 A.3d 937
    , 941 (Pa.Super. 2011) (internal
    citation omitted).
    Also implicated herein is a question of statutory interpretation of
    certain provisions of Act 6. As statutory interpretation is a question of law,
    our standard of review is de novo and our scope of review is plenary. See
    e.g., Roverano v. John Crane, Inc., 
    177 A.3d 892
    , 903 (Pa.Super. 2017).
    The Johnsons contend that the trial court erred by applying the version
    of section 101 in effect at the time their mortgage was executed in 2002,
    rather than the version of section 101 in effect at the time the foreclosure
    action was initiated in 2009. Since the prior version of section 101 had been
    repealed and replaced, they argue the trial court was required to apply the
    amended terms of section 101. They further claim that nothing in the 2008
    amendment indicates an intent by the legislature to restrict its effect to
    mortgages executed after to its effective date, and maintain that the
    absence of such language indicates an intention that the 2008 amendment
    apply to all foreclosure actions upon its effective date. Appellant’s brief at
    13-14.
    In support of their position, the Johnsons highlight the protective
    provisions contained in sections 403, 404, 406, and 407 of Act 6, which
    utilize the term “residential mortgage” in concert with the commencement of
    -9-
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    a foreclosure action, and claim that these provisions suggest that the
    effective date of the amendment need only precede the commencement of
    foreclosure proceedings. They further note that section 405, which prohibits
    prepayment penalties, specifically exempts mortgages entered into prior to
    the effective date of the amendment, and provides “[r]esidential mortgage
    obligations contracted for on or after the effective date of this act may
    be prepaid without penalty or other charge for such prepayment at any time
    before the end of the period of the loan.” Appellants’ brief at 15 (citing 41
    P.S. § 405) (emphasis in original). The Johnsons assert that the inclusion of
    this language in section 405 supports their argument that the legislature
    could have included provisions explicitly prohibiting retroactive application in
    other sections of the Act, such as section 406, but declined to do so.
    The Johnsons also challenge the trial court’s reliance on 
    Murphy, supra
    , and 
    Trunzo, supra
    , on the basis that those cases applied federal
    decisional law that did not involve foreclosure actions.10          Finally, the
    Johnsons argue that the trial court’s interpretation of Act 6 fails to effectuate
    the Act’s remedial purpose, and “would leave an enormous number of
    homeowners without protection under Act 6.” Appellants’ brief at 24.
    ____________________________________________
    10 The district courts in Murphy and Trunzo relied upon In re Harris-
    Penna, 
    446 B.R. 178
    (Bankr.E.D.Pa. 2009), and In re Grayboyes, 
    2006 WL 437546
    (E.D.Pa. Feb. 22, 2006), neither of which involved foreclosure
    proceedings, for the proposition that, in determining whether Act 6 applies,
    courts look to the principal amount set at the time the mortgage transaction
    took place.
    - 10 -
    J-A30019-17
    The central question presented in this dispute is whether the trial court
    should have construed Act 6 by employing the definition of “residential
    mortgage” provided by the version of section 101 in effect at the time the
    Johnsons executed their mortgage, or the version of section 101 in effect at
    the time foreclosure proceedings were initiated. Under the version in effect
    in 2002, the Johnsons’ $74,000 mortgage exceeded the $50,000 limit
    imposed by Act 6, and hence did not constitute a “residential mortgage”
    subject to the Act’s provisions. Conversely, if the 2008 version controls, the
    Johnsons’ $74,000 mortgage qualifies as a “residential mortgage” under the
    increased $217,873 limit of Act 6, thereby permitting the Johnsons to pursue
    a cause of action against Phelan under section 406 for excessive attorney
    fees.
    Initially, we turn to the Statutory Construction Act for guidance. When
    conducting     statutory   interpretation,   “our   object   is   to   ascertain   the
    Legislature’s intent, giving effect to all of the relevant statutory provisions.”
    Glover, supra at 199 (citing 1 Pa.C.S. § 1921(a)). “Generally, a statute’s
    plain language provides the best indication of legislative intent.” Roverano,
    supra at 903 (citation omitted).       However, we are also mindful that the
    Pennsylvania legislature has expressly prohibited retroactive application of
    statutory provisions unless it has clearly and manifestly provided for such
    application.   See 1 Pa.C.S. § 1926 (“No statute shall be construed to be
    retroactive unless clearly and manifestly so intended by the General
    - 11 -
    J-A30019-17
    Assembly.”).   Our courts have repeatedly interpreted this provision as
    creating a strong presumption of prospective statutory application only,
    absent clear language to the contrary. Brangs v. Brangs, 
    595 A.2d 115
    ,
    119 (Pa.Super. 1991).
    More central to the point, however, is that we are not dealing with a
    newly created statute; rather, we are dealing with an amendment to a
    statute.   The legislature has clarified that amendments to statutory
    provisions do not become effective until the date of their enactment:
    Whenever a section or part of a statute is amended, the
    amendment shall be construed as merging into the original
    statute, become a part thereof, and replace the part amended,
    and the remainder of the original statute and the amendment
    shall be read together and viewed as one statute passed at one
    time; but the portions of the statute which were not altered by
    the amendment shall be construed as effective from the time of
    their original enactment, and the new provisions shall be
    construed as effective only from the date when the
    amendment became effective.
    1 Pa.C.S. § 1953 (emphasis added). Thus, whereas Pennsylvania recognizes
    a presumption against retroactive application of statutes, 1 Pa.C.S. § 1926,
    it specifically provides that amendments are only effective prospectively
    from their effective date. See 1 Pa.C.S. § 1953.
    Under the version of section 101 in effect when the Johnsons executed
    their mortgage in 2002, a “residential mortgage” was defined, in pertinent
    part, as “an obligation to pay a sum of money in an original bona fide
    principal amount of fifty thousand dollars ($50,000) or less, evidenced by a
    security document and secured by a lien upon property located in this
    - 12 -
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    Commonwealth[.]” 41 P.S. § 101 (as amended April 6, 1979, effective until
    September 7, 2008).
    In 2008, section 101 was amended, and the term “residential
    mortgage” was redefined as “an obligation to pay a sum of money in an
    original bona fide principal amount of the base figure or less, evidenced by a
    security document and secured by a lien upon property located in this
    Commonwealth[.]”      41 P.S. § 101 (as amended effective September 8,
    2008).   The amended statute defined “base figure” as “two hundred
    seventeen thousand eight hundred seventy-three dollars ($217,873), as
    adjusted annually for inflation by the department through notice published in
    the Pennsylvania Bulletin.” 
    Id. Our review
    of the 2008 amendment to Act 6 reveals no indication by
    the General Assembly that the increased monetary limit for “residential
    mortgages” was “clearly and manifestly” intended to apply retroactively to
    mortgages executed prior to its effective date. See 1 Pa.C.S. § 1926. We
    are mindful that Act 6 is a remedial statute, which should be liberally
    construed to effectuate its aims. See Glover, supra at 200 (noting that Act
    6 is a usury law, designed to protect borrowers against improper mortgage
    lending practices). Nevertheless, without express legislative intent that the
    amendment should apply retroactively, section 1953 requires that we
    construe the amendment as taking effect on the date selected by the
    General Assembly, i.e., September 8, 2008. See 1 Pa.C.S. § 1953.
    - 13 -
    J-A30019-17
    The Johnsons’ reliance on First Nat’l Bank of Pennsylvania v.
    Flanagan, 
    528 A.2d 134
    , 137 (Pa. 1987), and Ministers and Missionaries
    Benefit Board of the American Baptist Churches v. Goldsworthy, 
    385 A.2d 358
    (Pa.Super. 1978) (overruled by Marra v. Stocker, 
    615 A.2d 326
    (Pa. 1992)), is misplaced. In Flanagan, our Supreme Court considered two
    amendments to section 101 of Act 6.         The first amendment, effective
    October 5, 1978, altered the definition of “residential mortgage” in a manner
    that excluded business loans.    The second amendment, effective April 6,
    1979, restored the definition to its pre-1978 version, which made Act 6
    applicable to business loans.   Plaintiffs secured a business loan in March
    1979, during the period in which Act 6 did not apply to such loans. Notably,
    the 1979 amendment included language which evidenced a specific intent by
    the legislature that the amendment should apply retroactively: “This Act
    shall take effect immediately and shall be retroactive to and including
    October 5, 1978.”    
    Flanagan, supra, at 137
    (citing 41 P.S. § 101 (as
    amended April 6, 1979)). Nevertheless, our Supreme Court ruled that the
    amendment, if applied retroactively, would void the agreement of guaranty
    securing the loan in question and, therefore, change the intentions of the
    parties.   
    Id. at 138.
       On this basis, the Court ruled that retroactive
    application of the amendment “violate[d] the contracts clause and is
    unconstitutional.” 
    Id. - 14
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    The Flanagan Court also rejected the appellant’s argument that the
    lender should be estopped from arguing that the amendment did not apply
    retroactively because it had complied with certain notice requirements
    imposed by the 1979 amendment.                 The High Court ruled that the notice
    requirements in the amendment could be applied retroactively because they
    were merely procedural in nature.                  Flanagan, supra at 138 (“The
    requirement of notice of the lender’s intention to foreclose in § 403 of [Act
    6] is . . . a procedural requirement and does not interfere with or deny any
    substantive rights.”). Here, we are not dealing with an amendment which
    imposes mere notice or disclosure requirements.11               Therefore, we find
    Flanagan inapposite.
    In Ministers and Missionaries, we considered whether certain notice
    requirements in Act 6 could be retroactively applied to mortgages executed
    before the effective date of the Act.              Under sections 403 and 404, a
    residential mortgage lender is precluded from accelerating the maturity date
    of the mortgage debt and commencing foreclosure proceedings, despite the
    existence of a default, until after the mortgagor is given notice of the default
    and his right to cure it. We ruled that retroactive application of the notice
    ____________________________________________
    11 For this reason we are unpersuaded by the Johnsons’ reference to a 2011
    letter from the Pennsylvania Department of Banking and Pennsylvania
    Housing Finance Agency to entities holding mortgages secured by
    Pennsylvania real property, notifying them that of the requirement that they
    comply with Act 6’s notice requirements.
    - 15 -
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    requirement did not impair the contractual rights of the mortgage lender
    because it merely postponed the exercise of its right to accelerate until after
    the mortgagor had received notice of and opportunity to cure a default.
    Ministers and 
    Missionaries, supra
    at 363.12                    Thus, Ministers and
    Missionaries      highlights    the   principle    that,   in certain circumstances,
    procedural laws, such as notice requirements, may be applied retroactively.
    However, as we are not dealing with an amendment which imposes mere
    notice or disclosure requirements, we find Ministers and Missionaries
    inapposite.
    We therefore conclude that the Johnsons’ mortgage is not a residential
    mortgage protected by Act 6.           The mortgage simply did not meet section
    101’s definition of a “residential mortgage” because the principal amount
    exceeded the $50,000 limit for residential mortgages in place at the time the
    transaction was consummated in 2002.               The 2008 amendment to Act 6
    cannot be retroactively applied to their 2002 mortgage. Since the Johnsons’
    mortgage is not a “residential mortgage” under the Act, they are without a
    predicate violation of Act 6 for which they can recover under section 502.
    ____________________________________________
    12  In Ministers and 
    Missionaries, supra
    , the notice provided by the
    mortgage lender did not comply with sections 403 and 404. Nevertheless,
    the court ruled that “where acceleration is predicated upon a default which
    cannot be cured, the reason for and the necessity of the information
    [required by Act 6] disappears.” 
    Id. at 364.
    In 
    Marra, supra
    , our
    Supreme Court rejected the suggestion in Ministers and Missionaries that
    strict compliance with the notice requirements of section 403 of Act 6 is not
    mandated. See 
    Marra, supra
    at 194.
    - 16 -
    J-A30019-17
    We therefore hold that the trial court did not err in sustaining Phelan’s
    preliminary objections in the nature of a demurrer on the basis that the
    Johnsons failed to state a claim under the Act.
    Order affirmed.
    Judgment Entered.
    Joseph D. Seletyn, Esq.
    Prothonotary
    Date: 11/28/2018
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