Mortgage Reform Package signed by Governor
As chairman of the House Commerce Committee, the legislative committee that oversees all banking and financial services in Pennsylvania, I have worked diligently on a package of bills aimed at mortgage reform.
Through extensive hearings across the state and numerous meetings with housing advocates, industry representatives and the state Banking department, the Commerce Committee has developed comprehensive legislation that will prevent a recurrence of this crisis.
By tightening and securing industry regulations we can reduce the number of mortgage foreclosures and protect homeowners and communities. Pennsylvania continues to weather crisis of significant proportions.
The number of home mortgage foreclosures has skyrocketed in Pennsylvania over the last five years and it was estimated that foreclosures in 2007 in Pennsylvania hit approximately 9,000 to 10,000 homes – and thousands of children, the elderly, and families.
Summary of the Bills:
Signed by the Governor on July 8th
House Bill 2179 -- would streamline the licensure and administrative process for mortgage brokers and bankers by creating a single license and by creating a new licensure category for all mortgage originators (the main contact for borrowers), regardless of the type of lending involved. Requires pre-license education and continuing education
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. Prepayment penalties cannot be included in mortgage contracts less than the monetary cap.
Senate Bill 484 -- would permit the Department of Banking to publicly release information after fines or adjudication actions are levied against mortgage lenders. Also would require criminal background checks on all mortgage originators
Senate Bill 485 -- would amend the Real Estate Appraisers Certification Act to intensify state
oversight of professional appraisers and increase penalties for professional misconduct. Also would provide for an appraiser trainee license, and require that an appraiser trainee must be supervised by a certified appraiser in good standing
Governor Rendell signs the mortgage reform bill.
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. Also would reduce the interest rate on HEMAP loans from 9% to a floating rate indexed to current market conditions
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