HARRISBURG – July 2, 2025 – Today, homeownership in Pennsylvania is more affordable and accessible for current and new homebuyers. Governor Shapiro signed House Bill 1103, now Act 16 of 2025, into law. The legislation was sponsored by Representative Morgan Cephas (D-Philadelphia) in the House, and Senator Nick Miller (D-Lehigh-Northampton) was a prime sponsor of the Senate companion, SB 767, with Senator Greg Rothman (R-Cumberland-Dauphin-Perry).
The bill will reduce mortgage costs and expand lending flexibility in Pennsylvania by amending the Mortgage Licensing Act (MLA) to allow discount points to be collected on mortgage loans made by non-bank mortgage lenders licensed by the Pennsylvania Department of Banking and Securities (DoBS).
Beginning in 60 days, borrowers will be allowed to use discount points to buy down their interest rate on first and second mortgage loans, helping to reduce their monthly payment.
“This is a practical solution that gives Pennsylvania homebuyers more control over their financing and monthly payments. I am grateful for Representative Cephas’s and Senator Rothman’s advocacy and partnership to take steps toward making housing more attainable for all Pennsylvanians,” said Senator Miller. “By modernizing our lending laws and aligning with neighboring states, we’re making homeownership more affordable and accessible.”
Currently, DoBS licenses and regulates approximately 600 non-bank mortgage lenders including 1,900 branches that make first and second mortgage loans under the MLA.
“I would like to thank Senator Miller for his leadership in getting this important bill passed, which will help to allow homeowners to access their equity,” said Senator Rothman.
With the legislation allowing mortgage lenders to offer discount points for the purpose of reducing the interest rate or time-price differential applicable to the mortgage, it follows similar legislation in neighboring states where lenders aren’t restricted from using discount points and benefit homeowners by providing flexibility and reducing costs.
“I was proud to champion this legislation for a bipartisan, unanimous vote in the Senate and want to thank the Governor for swiftly signing this important legislation into law,” said Senator Nick Miller. “This new law empowers borrowers and provides another tool for borrowers to address the housing affordability that our Commonwealth is facing.”