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FOR IMMEDIATE RELEASE |
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State
Rep. David Kessler |
  
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Kessler, Brubaker introducing bipartisan mortgage reform bills
OLEY, Nov. 13 – State Rep. David Kessler, D-Berks, and state Sen. Mike Brubaker, R-Lancaster/Chester, are continuing to work together to protect consumers against situations such as the PFM mortgage scandal that severely affected both lawmakers' districts.
Kessler and Brubaker each are introducing two bills in the House and Senate:
- One bill would prohibit a mortgage broker or originator from being the exclusive recipient of communications to a consumer. The bill would ensure that consumers are informed of the terms of their mortgage, and it would prevent brokers from withholding information about interest rates, fees or monthly payments. (S.B. 1614 / House bill number to be determined)
- The second bill would help to prevent fraud by protecting mortgage company employees who report illegal activities or take part in an investigation, hearing or inquiry. The legislation would prevent an employer from taking actions such as reducing an employee's salary or benefits, changing the terms of employment or firing an employee. (S.B. 1615 / House bill number to be determined)
Authorities said the PFM case involved a wide-ranging mortgage and investment fraud scheme.
"The PFM scandal has had a devastating impact on many Berks County homeowners. We have to do all we can to ensure that this never happens again," Kessler said.
Brubaker said that the Senate is not expected to take any roll call votes during the current legislative session, so the bills will not be considered by the Senate in 2008. However, he said that introducing the bills at the end of the current legislative session would give the bills added momentum in 2009.
"The recent fraud against hundreds of area homeowners left many wondering whether they would lose their homes and their life savings," Brubaker said. "Introducing this legislation now will allow us to raise awareness of this important issue in the coming weeks and give us additional time to fine tune these bills before the Senate reconvenes in January. I will reintroduce these bills at the beginning of the 2009-10 legislative session with the goal of seeing them signed into law next year."
Kessler said he also plans to reintroduce the legislation in the House next year.
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