SB 1402
An Act amending Title 7 (Banks and Banking) of the Pennsylvania Consolidated Statutes, providing for licensing and regulation of shared equity providers and shared equity agreements; imposing duties on the Department of Banking and Securities; and imposing penalties.
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Sign in to take action- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Bill overview
This bill establishes a regulatory framework for shared equity providers and agreements in Pennsylvania. It requires licensing for these providers, imposes specific disclosure and protective requirements on shared equity agreements, and creates a process for homeowners to seek remedies if they are harmed by violations. The bill also includes a temporary moratorium on new shared equity agreements and establishes duties for the Department of Banking and Securities to oversee the industry.
Key provisions
- Requires licensing for shared equity providers and agreements.
- Establishes specific disclosure requirements for shared equity agreements, including detailed information about costs and risks.
- Imposes protective provisions on shared equity agreements, such as requiring a three-day rescission period for homeowners.
- Prohibits certain terms and practices in shared equity agreements, including excessive fees and limitations on refinancing.
- Creates a process for homeowners to seek civil action and damages for violations of the law.
- Establishes a temporary moratorium on new shared equity agreements.
- Requires the Department of Banking and Securities to promulgate regulations to administer the law.
- Defines key terms related to shared equity agreements.
Who is affected
- Shared equity providers
- Homeowners entering into shared equity agreements
- The Department of Banking and Securities
- Financial institutions
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
Judith Schwank
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