Pennsylvania House Bill HB1103

Pennsylvania 2025-2026 Regular Session

• Introduced: 4/2/25
• Refer: 4/2/25
• Refer: 5/7/25
• Report Pass: 5/12/25
• Engrossed: 5/12/25
• Refer: 5/22/25
• Refer: 6/25/25
• Report Pass: 6/25/25
• Enrolled: 6/30/25
• Chaptered: 6/30/25
• Passed: 6/30/25

Caption

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.

Impact

The amendments made by HB1103 are significant for both consumers and mortgage lenders in Pennsylvania. By formalizing the definition of 'discount points', the legislation seeks to ensure that borrowers are better informed about the costs associated with lowering their interest rates. Furthermore, by empowering licensed mortgage lenders with specific capabilities to charge and collect various fees, the bill stabilizes the regulatory expectations within the mortgage industry, potentially leading to more competitive lending practices.

Summary

House Bill 1103 aims to amend Title 7 of the Pennsylvania Consolidated Statutes, focusing on the mortgage loan industry and enhancing consumer protection measures within mortgage lending practices. The bill introduces a key definition of 'discount points' and outlines additional powers that mortgage lenders will have under the updated legislative framework. These changes are intended to provide clarity around mortgage transactions and the fees that consumers can expect when engaging in mortgage loans.

Sentiment

The general sentiment toward HB1103 appears to be positive, particularly among those in the banking and mortgage sectors who support the efforts to streamline and clarify the mortgage lending process. The bill received unanimous support during its voting, indicating a strong consensus among legislators that the proposed updates will benefit both lenders and consumers alike. Nonetheless, as with any changes to financial regulation, there remain some concerns about how these amendments will be implemented in practice, particularly regarding transparency in fee disclosures.

Contention

Despite the support, there were discussions regarding potential pitfalls, especially concerning consumer awareness and understanding of the fees that may now be applicable under the new definitions. Critics argued that unless accompanied by robust consumer education initiatives, these changes might not effectively protect borrowers from hidden costs in the mortgage process. Additionally, the repeal of outdated definitions related to discount points could lead to confusion if not clearly communicated to all stakeholders in the lending market.