Bill > HB1466

This bill amends Pennsylvania's banking regulations to establish new requirements for mortgage lenders processing reverse mortgage loan applications. Specifically, the bill mandates that when a licensee accepts a reverse mortgage loan application, they must provide housing counseling to the applicant, either in-person or via telephone/video conference, through a HUD-approved housing counseling agency. The counseling must offer advice about reverse mortgages and potential alternatives. After counseling, the lender must issue a certificate to the applicant containing both the applicant's and counselor's signatures, the date of counseling, and contact information for both the individual and counseling organization. The lender must also retain this certificate for the entire loan term. The bill defines a reverse mortgage loan as a loan secured by a mortgage that provides loan proceeds drawn from home equity and requires no repayment until a future time. The new provisions will take effect 60 days after the bill's enactment, aiming to provide additional consumer protection and ensure borrowers are fully informed about the implications of reverse mortgage loans.

Budget and Finance, Business and Industry, Health and Social Services

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1466