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.

HB 2120 amends Pennsylvania's Loan Interest and Protection Law by adding two definitions: "residential mortgage" and "shared appreciation agreement." It defines a residential mortgage as a loan secured by a lien on property with two or fewer residential units (or for construction) with an original principal amount at or below a specific base figure. A shared appreciation agreement is defined as a transaction where an individual receives money in exchange for an interest in residential property secured by a lien, excluding government-backed home loans. This bill directly affects lenders, borrowers, and legal interpretations of mortgage agreements by clarifying the law's scope without changing existing interest rate rules or protections.