Pennsylvania SB 767: 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.

Bill Text

PRINTER'S NO. 824
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 767
Session of
2025
INTRODUCED BY ROTHMAN, MILLER, BROWN, STEFANO, HAYWOOD, FONTANA
AND MALONE, MAY 22, 2025
REFERRED TO BANKING AND INSURANCE, MAY 22, 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 which
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:
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§ 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, 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the Loan Interest and Protection Law, is repealed.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is repealed.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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