Pennsylvania HB 1466: An Act amending Title 7 (Banks and Banking) of the Pennsylvania Consolidated Statutes, in mortgage loan industry licensing and consumer protection, further providing for general requirements.

Bill Text

PRIOR PRINTER'S NO. 1717 PRINTER'S NO. 1973
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1466
Session of
2025
INTRODUCED BY CEPHAS, RABB, HILL-EVANS, GIRAL, SANCHEZ, MADDEN,
HOHENSTEIN, NEILSON, GALLAGHER, PARKER, INGLIS, D. WILLIAMS,
DELLOSO, CEPEDA-FREYTIZ, CIRESI AND KHAN, MAY 14, 2025
AS REPORTED FROM COMMITTEE ON AGING AND OLDER ADULT SERVICES,
HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 23, 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 general
requirements.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 6121 of Title 7 of the Pennsylvania
Consolidated Statutes is amended by adding a paragraph to read:
§ 6121. General requirements.
A licensee shall do all of the following:
* * *
(16) If the licensee accepts applications for reverse
mortgage loans: PROCESSES AN APPLICATION SUBMITTED BY AN
INDIVIDUAL FOR A REVERSE MORTGAGE LOAN:
(i) Provide in-person , face-to-face housing
counseling to an applicant THE INDIVIDUAL WHO SUBMITTED
THE APPLICATION from a housing counseling agency that is
approved by the United States Department of Housing and
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Urban Development in this Commonwealth. The housing
counseling agency shall provide advice on a reverse
mortgage loan and alternatives to a reverse mortgage
loan.
(ii) If an applicant THE INDIVIDUAL is unable or
chooses not to schedule an in-person, face-to-face visit
with a housing counselor by either traveling to a housing
counseling agency or having an in-home visit from a
counselor, conduct the housing counseling over the
telephone or through video teleconference.
(iii) After completion of the housing counseling,
issue to the applicant INDIVIDUAL a certificate that
contains the following information:
(A) The signatures of the applicant INDIVIDUAL
and the housing counselor who provided the service.
(B) The date on which the housing counseling
services were provided.
(C) The name, address and telephone number of
both the applicant INDIVIDUAL who received counseling
and the organization that provided the counseling.
(iv) Maintain the certificate issued under
subparagraph (iii) for the duration of the term of the
loan.
FOR PURPOSES OF THIS PARAGRAPH, THE TERM "REVERSE MORTGAGE
LOAN" SHALL MEAN A LOAN, SECURED BY A MORTGAGE , THAT PAYS A
HOMEOWNER LOAN PROCEEDS DRAWN FROM ACCUMULATED HOME EQUITY
AND THAT REQUIRES NO REPAYMENT UNTIL A FUTURE TIME.
Section 2. This act shall take effect in 60 days.
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