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For Immediate
Release
3/11/08
Contact:
Lesley Crozier
(717) 787-1349
  -
Senator Browne
- Senator Baker
Senate Approves Mortgage
Reform Bills
Senator
Browne’s Legislative package headed to House
The Senate today (March 11) unanimously approved six
bills introduced by Senator Pat Browne (R-16) targeting
predatory and other questionable mortgage lending practices
in Pennsylvania.
Senate Bills 483, 484, 485, 486, 487 and 488 are now
headed to the House of Representatives for consideration.
“While Pennsylvania has fared better than many states as
a result of the collapse of the housing market, we have
many, many families suffering as a result of predatory
lending and other questionable mortgage practices in the
past,” Senator Browne said. “It is incumbent upon us to
adjust our banking codes and other codes to try to better
protect consumers in one of their most important decisions
and that is taking on a mortgage to secure a primary
residence.”
Senate Bill 483 would amend the Loan Interest and
Protection Law of 1974 to increase the monetary cap in the
Act from $50,000 to $200,000. “The most important protection
is eliminating pre-payment penalties for loans $200,000 or
less,” said Senator Browne.
Senate Bill 484 would permit the Department of Banking to
publicly release information on pending enforcement actions
and fines levied against non-depository licensees.
Senate Bill 485 would amend the Real Estate Appraisers
Certification Act regarding board membership, disciplinary
measures and penalties.
Senate Bill 486 would amend the Housing Finance Agency
Law to require lenders to send copies of foreclosure notices
to the Pennsylvania Housing Finance Agency so that mortgage
foreclosures can be monitored on a statewide basis.
Senate Bill 487 would amend the Mortgage Bankers and
Brokers and Consumer Equity Protection Act to create a new
licensing category for individual mortgage originators who
deal directly with the consumer by soliciting, accepting or
offering to accept mortgage loan applications or negotiating
mortgage loan terms.
Senate Bill 488 would amend the Secondary Mortgage Loan
Act to create a new licensing category for individual
mortgage originators who deal directly with the consumer by
soliciting, accepting or offering to accept secondary
mortgage loans (home equity) applications or negotiating
secondary mortgage loan terms.
“Right now mortgage lenders and brokers are licensed, but
those who originate the loans and go through paper work with
the consumer and negotiate terms are not,” Senator Browne
said. “This licensing category, which is being considered
by other states and the federal government, is an important
step to protect consumers. It’s my belief that those in the
business of soliciting, advertising and dealing directly
with consumers in regards to mortgage loans should be
required to have a basic fiduciary responsibility similar to
other circumstances where people are licensed to sell
financial products in the marketplace.”
Senator Browne introduced the bills based on the findings
of a mortgage industry study mandated by House Resolution
364, which was adopted in 2003. This Resolution directed the
Department of Banking to study residential lending practices
in Pennsylvania, examine trends in foreclosures and document
lending practices that are harmful to consumers.
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