In mortgage loan industry licensing and consumer protection, further providing for general requirements.
Summary
HB1466 amends Pennsylvania’s banking and consumer protection laws to add a new requirement for licensees that process reverse mortgage applications. Before a reverse mortgage loan can proceed, the applicant must receive housing counseling from a HUD-approved housing counseling agency in Pennsylvania. The counseling must cover the reverse mortgage and alternatives to it, and it is intended to ensure borrowers understand the product before taking on the loan.
The bill requires the counseling to be provided in person and face-to-face when possible, including at the counseling agency or through an in-home visit. If the applicant cannot or chooses not to do an in-person session, the counseling may be completed by telephone or video teleconference. After counseling, the applicant and counselor must sign a certificate documenting the session, and the licensee must keep that certificate for the life of the loan. The bill also defines “reverse mortgage loan” for this new paragraph as a mortgage-secured loan that advances home equity proceeds and does not require repayment until a later time.
Impact
HB1466 changes Title 7 of the Pennsylvania Consolidated Statutes by adding a consumer-protection condition to the mortgage loan industry licensing rules for reverse mortgages. It affects mortgage licensees that accept or process reverse mortgage applications, HUD-approved housing counseling agencies in Pennsylvania, and older homeowners who may seek reverse mortgage financing. The bill does not ban reverse mortgages, but it adds a mandatory counseling and recordkeeping step before origination can move forward.
Sentiment
The available voting record shows strong support for the bill at each stage, including unanimous committee votes and a large bipartisan final passage vote in the House. The 167-35 floor vote suggests broad agreement that additional counseling protections are appropriate for reverse mortgage borrowers. The committee placement in Aging and Older Adult Services also indicates the bill was viewed as an elder-focused consumer protection measure rather than a controversial banking overhaul.
Contention
There is little evidence of major contention in the available record, since no committee transcript is provided and the bill advanced with strong support. Any likely policy debate would center on balancing consumer protection for older homeowners against added compliance steps for lenders and the possibility that mandatory counseling could slow or complicate reverse mortgage processing. The bill’s flexibility for telephone or video counseling appears designed to address access concerns while preserving the face-to-face counseling preference.
In mortgage loan industry licensing and consumer protection, further providing for definitions, for exceptions to license requirements and for general requirements.
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.
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.
In natural gas competition, further providing for standards for restructuring of natural gas utility industry, for consumer protections and customer service and for requirements for natural gas suppliers; and, in restructuring of electric utility industry, further providing for standards for restructuring of electric industry, for duties of electric distribution companies and for requirements for electric generation suppliers.
In support matters generally, further providing for liability for support; in protection from abuse, further providing for relief; and imposing penalties.