Skip to agency navigation
Skip to main content

Official website

of the Commonwealth of Pennsylvania

    The .gov means it's official.

    Local, state, and federal government websites often end in .gov. Commonwealth of Pennsylvania government websites and email systems use "pennsylvania.gov" or "pa.gov" at the end of the address. Before sharing sensitive or personal information, make sure you're on an official state website. 

    New Bipartisan Law Signed by Governor Shapiro Enables Mortgage Lenders to Offer Discount Points, Lowering Costs for Pennsylvania Homeowners

    July 02, 2025

    Act 16 of 2025 allows consumers to buy discount points on first and second mortgages, thereby buying down interest rates providing for lower monthly payments

    Harrisburg, PA – This week, 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. 

    While the MLA is focused on protecting consumers, this new law also complements Governor Shapiro’s broader efforts to strengthen consumer protections across Pennsylvania. Recently, the Governor launched a centralized consumer protection hotline, website, and email — 1-866-PACOMPLAINT, pa.gov/consumer, and consumer@pa.gov — making it easier than ever for Pennsylvanians to report scams, resolve financial or insurance issues, and get connected to the right state agency for help. No matter the issue, consumers will be routed to the right agency for assistance.

    The DoBS regulates financial services and promotes consumer and investor education across the Commonwealth. To learn more about DoBS, visit pa.gov/dobs, subscribe to the department newsletter, or follow us on Facebook, X, or LinkedIn. 

    MEDIA CONTACT: Joan Z. Nissley, jnissley@pa.gov

    # # #