HB 2120 — 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 and for duties of Department of Banking and Securities; and imposing penalties.

PRINTER'S NO.   2736

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2120
                                               Session of
                                                 2026

     INTRODUCED BY VENKAT, TWARDZIK, POWELL, WAXMAN, HILL-EVANS,
        SANCHEZ, MADDEN, CEPEDA-FREYTIZ, PROBST, WEBSTER AND TAKAC,
        JANUARY 7, 2026

     REFERRED TO COMMITTEE ON COMMERCE, JANUARY 7, 2026


                                    AN ACT
 1   Amending the act of January 30, 1974 (P.L.13, No.6), entitled
 2      "An act regulating agreements for the loan or use of money;
 3      establishing a maximum lawful interest rate in the
 4      Commonwealth; providing for a legal rate of interest;
 5      detailing exceptions to the maximum lawful interest rate for
 6      residential mortgages and for any loans in the principal
 7      amount of more than fifty thousand dollars and Federally
 8      insured or guaranteed loans and unsecured, noncollateralized
 9      loans in excess of thirty-five thousand dollars and business
10      loans in excess of ten thousand dollars; providing
11      protections to debtors to whom loans are made including the
12      provision for disclosure of facts relevant to the making of
13      residential mortgages, providing for notice of intention to
14      foreclose and establishment of a right to cure defaults on
15      residential mortgage obligations, provision for the payment
16      of attorney's fees with regard to residential mortgage
17      obligations and providing for certain interest rates by banks
18      and bank and trust companies; clarifying the substantive law
19      on the filing of and execution on a confessed judgment;
20      prohibiting waiver of provisions of this act, specifying
21      powers and duties of the Secretary of Banking, and
22      establishing remedies and providing penalties for violations
23      of this act," in preliminary provisions, further providing
24      for definitions.
25      The General Assembly of the Commonwealth of Pennsylvania
26   hereby enacts as follows:
27      Section 1.    The definition of "residential mortgage" in
28   section 101 of the act of January 30, 1974 (P.L.13, No.6),
 1   referred to as the Loan Interest and Protection Law, is amended
 2   and the section is amended by adding a definition to read:
 3      Section 101.    Definitions.--As used in this act:
 4      * * *
 5      "Residential mortgage" means an obligation to pay a sum of
 6   money in an original bona fide principal amount of the base
 7   figure or less, evidenced by a security document and secured by
 8   a lien upon real property located within this Commonwealth
 9   containing two or fewer residential units or on which two or
10   fewer residential units are to be constructed and shall include
11   such an obligation on a residential condominium unit. The term
12   includes a shared appreciation agreement.
13      * * *
14      "Shared appreciation agreement" means as follows:
15      (a)    A writing evidencing a transaction or any option,
16   future, or any other derivative between a person and an
17   individual under which the individual receives money or another
18   item of value in exchange for either of the following:
19      (1)    An interest, contingent interest or future interest in a
20   dwelling or residential real property located within this
21   Commonwealth that is secured by a lien upon the dwelling or
22   residential real property located within this Commonwealth.
23      (2)    Another future obligation, secured by a lien upon a
24   dwelling or residential real property located within this
25   Commonwealth, to make a payment calculated in whole or in part
26   by reference to the value, equity or proceeds of the dwelling or
27   residential real property located within this Commonwealth upon
28   the occurrence of any of the following events:
29      (i)    The transfer of ownership.
30      (ii)    A repayment maturity date.

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1      (iii)    The death of the individual.
2      (iv)    Another event contemplated by the writing.
3      (b)    The term shall not include a home secured loan
4   guaranteed, insured or otherwise offered by a government agency
5   or government-sponsored enterprise.
6      Section 2.    This act shall take effect immediately.




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