Bill > HB1103

This bill updates Pennsylvania's mortgage loan industry regulations by adding a clear definition of "discount points" to the state's banking code and expanding the powers of mortgage lenders. Specifically, the bill defines discount points as fees voluntarily paid by a consumer that result in a genuine reduction of the mortgage's interest rate or time-price differential. The legislation also explicitly allows mortgage lenders to charge and collect points and discount points in addition to other fees like origination and delinquency charges. To implement these changes, the bill repeals existing definitions of discount points in the Loan Interest and Protection Law and removes related sections to avoid legal conflicts. The new provisions will take effect 60 days after the bill's passage, providing mortgage lenders and consumers with clearer guidelines about the use and calculation of discount points in mortgage transactions. This update aims to provide more transparency and standardization in how mortgage-related fees are understood and applied in Pennsylvania.