An Act amending the act of January 30, 1974 (P.L.13, No.6), referred to as the Loan Interest and Protection Law, in protective provisions, further providing for prepayment penalty prohibited.
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
This bill amends Pennsylvania’s Loan Interest and Protection Law to prohibit prepayment penalties on residential mortgages. Specifically, it amends Section 405 to state that homeowners can pay off their loans early without incurring any additional fees or charges. This change applies to loans contracted for on or after the effective date of the act.
Key provisions
- Prohibits prepayment penalties on residential mortgages.
- Applies to loans contracted for on or after the effective date of the act.
- Addresses Section 405 of the Loan Interest and Protection Law.
- Specifically targets loans made primarily for personal, family, or household purposes.
- Does not affect exceptions for larger loans (over $50,000) or certain types of loans.
- The act takes effect 60 days after enactment.
Who is affected
- Homeowners
- Mortgage lenders
- Pennsylvania residents
Notable changes
- Adds a prohibition on prepayment penalties for residential mortgages.
Bill text
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Document of record
- Version
- Pn 3211 Html
- Published
- Not published in the source record
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Sponsors
Official sponsors from legislative records.
6 on record
Primary sponsor
Cosponsors
Manuel Guzman
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