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FOR IMMEDIATE RELEASE |
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Rep.
Peter J. Daley |
  
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House Commerce Committee moves forward on mortgage reform bills
Collaboration between the House and Senate leads to unanimous committee vote
HARRISBURG, June 11 – The state House Commerce Committee has voted unanimously in favor of three Senate bills intended to reform mortgage lending practices in Pennsylvania.
"These instrumental bills exemplify a bipartisanship effort between the House and the Senate." said state Rep. Peter J. Daley, majority chairman of the committee. "After a yearlong process of hearings and negotiations, it seems we have collaborated on the most ideal legislation to aid Pennsylvania residents."
Daley expressed his appreciation to both state Sen. Pat Browne, R-Lehigh/Monroe/ Northampton, the author of the Senate bills, and to state Rep. Dick Hess, minority chairman of the House Commerce Committee, for their collaboration in moving forward on the reform package. The core licensure bill in the reforms introduced by Daley and Hess is currently moving through the Senate to complement Browne’s bills.
"With the approval of these bills by the Commerce Committee, we are one step closer to having real mortgage lending reform in Pennsylvania," Hess said. "I look forward to working further with Chairman Daley and the Senate to see that this important legislation is enacted without further delay."
The overall package takes aim at predatory and other questionable mortgage lending practices in Pennsylvania.
"The mortgage crisis has become one of the most pressing issues facing homeowners nationwide," Daley said. "It seems that with each day, the crisis escalates. It is incumbent upon us to make adjustments to try to better protect consumers in one of their most important decisions of their life and that is taking on a mortgage to secure a primary residence."
The bills approved by the Commerce Committee on Tuesday today include:
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 the base figure of $217,873, as adjusted annually for inflation. Mortgage contracts below the cap cannot include prepayment penalties.
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 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. The bill also would require PHFA to commence on ongoing study of mortgage foreclosures in the Commonwealth.
"I am confident that we will generate the support we need to pass these bills and send them to the governor’s desk for signing," Daley said.
The Senate bills are now headed to the full House of Representatives for consideration.
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