Governor Josh Shapiro signed House Bill 1103 into law. Now known as Act 16 of 2025, the law will take effect in 60 days and amends the Mortgage Licensing Act (MLA) to clarify that discount points may be collected on first and secondary mortgage loans made by non-bank mortgage lenders licensed by the Pennsylvania Department of Banking and Securities (DoBS).
The MLA licenses mortgage originators and mortgage companies and regulates the origination and servicing activity for Pennsylvanians. Under this amended law, borrowers can now buy down their interest rate on first and second mortgage loans, helping to reduce their monthly payment.
“For many hard-working people, home ownership is their American dream,” said DoBS Secretary Wendy Spicher. “Now that mortgage lenders can offer discount points, homeowners can reap the benefits by having lower monthly payments and get additional access to credit. This new law ensures consistency across the majority of states and benefits Pennsylvania homeowners.”
DoBS licenses and regulates about 600 non-bank mortgage lenders along with about 1,900 branches that make first and second mortgage loans under the MLA.
