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FOR IMMEDIATE RELEASE |
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State Rep. Jesse White
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White bill to stem mortgage foreclosures passes House
HARRISBURG, April 8 – State Rep. Jesse White, D-Washington/Allegheny/Beaver, said legislation he sponsored that would help protect homeowners from mortgage foreclosures passed unanimously in the House today.
White’s bill (H.B. 1083) would extend the stay on mortgage foreclosures when homeowners appeal the denial of assistance through the state’s Homeowner Emergency Mortgage Assistance Program. Specifically, the legislation would require lenders to put a hold on any foreclosure proceedings until the homeowner has appealed the PHFA rejection and has again been denied assistance.
"As a practicing attorney, I’ve seen many unfortunate foreclosure and bankruptcy situations in which people lose their homes," White said. "My legislation would help ensure that the homeowner has a fair chance at keeping his or her home during the appeal process."
HEMAP is administered by the Pennsylvania Housing Finance Agency and can make mortgage payments on behalf of a homeowner on a temporary basis until he or she can return to work or secure new employment. Under current law, if PHFA denies an application for HEMAP assistance, the lender may proceed with the foreclosure process.
White’s legislation also would lower the interest rate on HEMAP loans from the statutory 9 percent to a floating rate currently at 6.75 percent. White said this means more people could get HEMAP loans at lower interest rates.
Additionally, the legislation would require lenders to report foreclosures, provide homeowners with a documented list of what is owed, copies of the HUD-1 statement, the mortgage and the note, and any appraisal performed within the past five years. Should these documents not be provided, the lender would lose its right to receive late fees, attorney fees, costs or expenses.
White pointed out that this would force lenders to provide borrowers with much-needed information and justify any extra fees during the foreclosure process.
White said the state House took action on an entire package of mortgage reform bills today. More information on those reforms is available at www.pahouse.com.
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