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FOR IMMEDIATE RELEASE |
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State
Rep. Mike Carroll |
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TO: Editor, Community Express
FROM: State Rep. Mike Carroll, D-Luzerne/Monroe
RE: Pa. House tackles mortgage foreclosure crisis
DATE: April 17, 2008
The number of mortgage default rates nationally is on the rise, and many point the finger at abusive lending practices by banks and other loan agencies that have left people in danger of losing their homes. Home foreclosures in Pennsylvania have risen 22 percent overall since last year, and 43 percent in the first two months of 2008.
Monroe County had more than 1,000 foreclosure filings in 2007. Not only is this detrimental to the homeowners involved, but it also affects the property values of nearby residents. It’s obvious that without some action on the state level to address the mortgage crisis, we will see significantly more Pennsylvanians become victims of foreclosure.
I recently joined with my House colleagues to pass a comprehensive, bipartisan package of legislation that would help Pennsylvania homeowners avoid foreclosure, protect consumers from well-known mortgage loan abuses and help them adjust to the instability of the housing market, tighten regulatory procedures and strengthen enforcement of existing rules.
Among other actions, the bills would:
- increase oversight of certified real estate appraisers;
- give the Pennsylvania Housing Finance Agency more flexibility to accept late payments, make compromise mortgage payoffs and set interest rates on loans;
- add interest rate protections for consumers by increasing the maximum interest cap from $50,000 to $197,000 for residential mortgage loans;
- consolidate licensure requirements for mortgage originators, brokers, bankers, and loan correspondents and prohibit them from operating without a license; and
- allow large mortgage firms to devise and implement their own in-house originator licensure education and testing programs under the guidance and approval of the state Banking Department.
These measures would protect consumers by ensuring they would be treated fairly and protected from harmful lending practices while also making the mortgage industry more stable and predictable. We don’t want Pennsylvania to endure the same mortgage crisis situations currently unfolding in other states like California and Florida.
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