Pennsylvania Governor Josh Shapiro has signed bipartisan legislation into law that enables mortgage lenders to offer discount points to lower housing costs for homeowners in the commonwealth.
House Bill 1103, otherwise known as Act 16 of 2025, will amend 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 PA Department of Banking and Securities (DoBS).
The law will go into effect in 60 days.
The MLA licenses mortgage originators and mortgage companies and regulates the origination and servicing activity for Pennsylvanians. Under the amended law, borrowers can now buy down their interest rates on first and second mortgage loans to help reduce their monthly payments.
DoBS Secretary Wendy Spicer is quoted in a press release saying with this new law, homeowners can have lower monthly payments and get additional access to credit.
"This new law ensures consistency across the majority of states and benefits Pennsylvania homeowners," Spicer said.
Additionally, the new law also complements efforts to strengthen consumer protections. Recently, a centralized consumer protection hotline, website and email were launched making it easier for Pennsylvanians to report scams, resolve financial or insurance issues and get connected to the right agency for assistance.