This bill amends Title 7 of the Pennsylvania Consolidated Statutes, specifically focusing on the mortgage loan industry licensing and consumer protection. It introduces a new definition for "discount points," which are described as fees knowingly paid by consumers that lead to a genuine reduction in the interest rate or time-price differential applicable to a mortgage. Additionally, the bill grants mortgage lenders the authority to charge and collect not only interest and origination fees but also discount points and delinquency charges, provided they comply with the relevant provisions of the chapter.

Furthermore, the bill includes repeals that are necessary to implement the new definition of "discount points" and the amendments to the powers conferred on mortgage lenders. Specifically, it repeals the existing definition of "discount points" in the Loan Interest and Protection Law and also repeals Section 402 of that law. The act is set to take effect 60 days after its passage.

Statutes/Laws affected:
Printer's No. 824 (May 22, 2025): 7-6102, P.L.13, No.6