Pennsylvania Gov. Edward Rendell signed a pair of bills last week aimed at combating mortgage fraud in the state. According to a statement from the governor’s office, the new laws were written to strengthen communication between homeowners and their lenders and encourage employees at mortgage companies to report illegal activity.
Gov. Rendell said, “These bills will provide increased protection for Pennsylvania consumers shopping for a mortgage or refinancing their homes. They represent a critical step forward in our strategy to combat mortgage lending fraud and abuse in Pennsylvania.”
The first law, Senate Bill 170, sponsored by Sen. Mike Brubaker, will prohibit a mortgage broker or originator from being the sole recipient of communications from lenders. Lawmakers say this will help ensure that consumers receive monthly statements and other notices intended for them by their lenders.
The second measure, House Bill 985, sponsored by Rep. David Kessler, will shield mortgage company employees who report illegal activity or take part in an investigation from retaliation by their employer in the form of reduced salaries, termination, or similar actions.
Gov. Rendell added, “Securing a home mortgage is the largest, most significant financial responsibility most people will ever take on. With the enactment of these bills, we continue our efforts to help more Pennsylvanians secure their part of the American dream.”
Both of the new laws are set to take effect August 28.
Author: Carrie Bay
• Date: 07/06/2009
• Category: Government
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