HB 2391 — 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.

PRINTER'S NO.   3211

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2391
                                               Session of
                                                 2026

     INTRODUCED BY CONKLIN, HARKINS, HILL-EVANS, GUZMAN AND PARKER,
        APRIL 15, 2026

     REFERRED TO COMMITTEE ON COMMERCE, APRIL 16, 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 protective provisions, further providing for
24      prepayment penalty prohibited.
25      The General Assembly of the Commonwealth of Pennsylvania
26   hereby enacts as follows:
27      Section 1.    Section 405 of the act of January 30, 1974
28   (P.L.13, No.6), referred to as the Loan Interest and Protection
29   Law, is amended to read:
1      Section 405.   Prepayment Penalty Prohibited.--Residential
2   mortgage obligations made primarily for personal, family or
3   household purposes and contracted for on or after the effective
4   date of this act may be prepaid without any penalty or other
5   charge for such prepayment at any time before the end of the
6   period of the loan.
7      Section 2.   This act shall take effect in 60 days.




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