PA House approves Cephas bill to protect older homeowners
Would require financial counseling for those entering into a reverse mortgage
Rep. Morgan B. Cephas July 15, 2025 | 11:41 AM
HARRISBURG, July 14 – Today, the PA House of Representatives passed legislation sponsored by state Rep. Morgan Cephas, D-Phila., to protect homeowners from unknowingly losing their home and generational wealth. Senior citizens and other homeowners on a fixed income often refinance their home utilizing a reverse mortgage based on the benefit of an immediate financial gain without fully understanding the long-term outcome of the agreement. House Bill 1466 would ensure that anyone entering this type of transaction receives face-to-face financial counseling to make homeowners aware of the risks associated with a reverse mortgage.
A reverse mortgage is a financial agreement that allows a homeowner to borrow on the equity in their home for a short-term monetary gain, such as a lump sum or a fixed payment. These complex contracts often target seniors who have spent their lives building equity in their home and might not fully grasp the details of the agreement.
“Pennsylvanians are facing economic struggles across all ages and regions, but our seniors and those on a fixed income are hit the hardest,” Cephas said.
“Seniors, in particular, often fall prey to the promise of short-term gain without realizing what they might lose down the road. This would create a sensible pause in the process to ensure that homeowners comprehend what they’re agreeing to, have it explained by a financial counselor who can put it in plain and understandable language, and be made aware of their alterative options. This is one more plank in our effort to responsibly protect generational wealth and safeguard homeowners from unsuspectingly losing their life’s investment in their property.”
The bill passed the House with bipartisan support and now heads to the PA Senate for consideration.
Making housing more affordable and protecting homeowners’ investments has been a priority for Cephas, as H.B. 1466 is the third of her housing-related bills to pass the PA House in 2025. House Bill 986, which would protect homeowners from unfair service agreements, also awaits PA Senate approval, and Act 16 of 2025 allowing the purchase of discount mortgage points to make monthly housing payments more affordable was recently signed into law.
The 192nd Legislative District comprises communities in West Philadelphia which are north and west of Market Street, including Overbrook, Overbrook Park, Wynnefield, Carroll Park and more.