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Pennsylvania General Assembly· HB 1103Act No. 16 of 2025, June 30, 2025

An Act amending Title 7 (Banks and Banking) of the Pennsylvania Consolidated Statutes, in mortgage loan industry licensing and consumer protection, further providing for definitions and for powers conferred on certain li, the official text

Shown verbatim: the complete text as captured from the official page posted by the Pennsylvania General Assembly, fetched 2026-08-29. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the current version. The official bill page.
PRIOR PRINTER'S NO. 1224
PRINTER'S NO.  1658
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1103
Session of
2025
INTRODUCED BY CEPHAS, TWARDZIK, HILL-EVANS, POWELL, GUZMAN,
WAXMAN, SANCHEZ, NEILSON, McANDREW, GIRAL, CEPEDA-FREYTIZ,
HANBIDGE, MAYES, CERRATO, WARREN AND PARKER, APRIL 2, 2025
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
MAY 7, 2025
AN ACT
Amending Title 7 (Banks and Banking) of the Pennsylvania
Consolidated Statutes, in mortgage loan industry licensing
and consumer protection, further providing for definitions
and for powers conferred on certain licensees engaged in the
mortgage loan business; and making repeals.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1.  Section 6102 of Title 7 of the Pennsylvania
Consolidated Statutes is amended by adding a definition to read:
§ 6102.  Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Discount points."  Fees knowingly paid by the consumer for
the purpose of reducing, and which in fact result in a bona fide
reduction of, the interest rate or time-price differential
applicable to the mortgage.
* * *
Section 2.  Section 6122(a)(1) of Title 7 is amended to read:
§ 6122.  Powers conferred on certain licensees engaged in the
mortgage loan business.
(a)  Mortgage lenders.--If they are in compliance with the
provisions of this chapter, mortgage lenders shall have the
power and authority:
(1)  To make first and secondary mortgage loans and,
subject to the limitations of this chapter, to charge and
collect interest, points,    discount points,    origination fees
and delinquency charges for the loans.
* * *
Section 3.  Repeals are as follows:
(1)  The General Assembly declares that the repeals under
paragraphs (2) and (3) are necessary to effectuate the
addition of the definition of "discount points" in 7 Pa.C.S.
§ 6102 and the amendment of 7 Pa.C.S. § 6122(a)(1).
(2)  The definition of "discount points" in section 101
of the act of January 30, 1974 (P.L.13, No.6), referred to as
the Loan Interest and Protection Law, is repealed.
(3)  Section 402 of the Loan Interest and Protection Law
is repealed.
Section 4.  This act shall take effect in 60 days.
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