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FOR IMMEDIATE RELEASE |
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State
Rep. Mark Longietti |
   
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Pa. House advances mortgage foreclosures proposals
Package of bills would protect consumers, enhance regulations to help Pa. homeowners
HARRISBURG, June 27 – With economists estimating that the value of American residential real estate could fall by as much as $4 trillion, members of the Pennsylvania House, including state Rep. Mark Longietti, D-Mercer, approved a package of bills Friday that would address some of the root causes of the mortgage foreclosure problems affecting Pennsylvania residents.
Longietti said the proposals, (S.Bs. 483, 484, 485 and 486), would provide a comprehensive approach to the crisis by helping consumers and borrowers adjust to the instability of the housing market, tightening regulatory procedures and strengthening the enforcement of existing rules to protect against questionable lending practices.
"The pains of the sharp and unexpected turnaround in the housing market are being felt by working-class homeowners across Pennsylvania," Longietti said. "The proposals we passed today, collectively, would help them keep their homes and ride out this crisis."
One of the measures in the package approved today is similar to legislation introduced by Longietti earlier this year. The bill (S.B. 485) would help crack down on fraudulent home appraisals, which many financial experts believe have played a major role in the current mortgage crisis. The bill would reform the State Board of Certified Real Estate Appraisers to provide additional checks against fraudulent appraisals and provide additional reasons for denying, suspending or revoking an appraiser's certificate in Pennsylvania.
"Mortgage fraud has played a major role in the financial crisis we are witnessing and forcing many banks to foreclose on the homes of honest, hardworking citizens," Longietti said. "These schemes would not work without the willingness of some unscrupulous appraisers to cook the books and over inflate the value of homes far in excess of what they are worth in order to receive a monetary kick back. This proposal would help prevent those who committed fraud in another state from coming to Pennsylvania and setting up shop here, which is especially important to border communities like Mercer County."
Longietti said as the General Assembly approaches the final days of securing a state budget, addressing the mortgage crisis should be a major component of the final negotiations.
"These measures take decisive steps in ensuring that homeowners and homebuyers are treated fairly and not exposed to harmful lending practices, as well as attempt to make the mortgage marketplace more predictable and stable," he said. "It's a way we can help citizens weather the storm."
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Attention Radio News Directors: an actuality from Rep. Longietti is available by calling 1-880-452-3001. Enter PA7 (7-2-7) and the pound sign (#) at the menu prompt to get today's sound. You can also download the sound in .mps format by visiting www.pahouse.com/mediacenter. |