COSTA APPLAUDS SENATE PASSAGE
OF MORTGAGE REFORM BILLS
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Costa |
HARRISBURG, March 11:
State Sen. Jay Costa (D-Allegheny) today
applauded the unanimous Senate passage of a
six-bill package of mortgage lending bills.
Costa said the legislation would
give the Pennsylvania Department of Banking
new enforcement powers to get predatory
lenders out of the mortgage industry.
“I applaud my Senate colleagues
for taking a stand against predatory lenders
and making strides to combat the struggling
housing market,” Costa said. “The mortgage
foreclosure rates across the nation are
through the roof, and this legislation is
unquestionably an aggressive step forward
that will help protect Pennsylvanian
homeowners.”
According to RealtyTrac, the
leading on-line marketplace for foreclosure
properties, in 2007 there were more than 2.2
million foreclosure filings on nearly 1.3
million properties across the United States.
Costa said the bills (Senate Bills 483, 484,
485, 486, 487, and 488) would:
-
add interest-rate protections for
consumers by increasing the maximum
interest cap from $50,000 to $200,000
for residential mortgage loans;
-
permit the Department of Banking to
release information on pending
enforcement actions and fines against
non-depository licensees. And require
licensees to use a national electronic
licensing system and obtain criminal
history checks;
-
improve and strengthen enforcement
actions against real estate appraisers
who perform fraudulent work;
-
expand the state Board of Certified Real
Estate Appraisers from 7 to 11 members
and establish three classes of real
estate appraisers: Certified Real Estate
Appraisers, Certified General Appraisers
and Appraiser Trainee License;
-
improve mortgage oversight and give PHFA
more flexibility to accept late
payments, make compromise mortgage
payoffs and set interest rates on loans
and also change the assistance interest
rate from 9 percent to a mortgage
interest rate established under the
Usury Law;
-
create a new licensure category for
mortgage originators who deal directly
with the consumer so that their actions
can be better accounted for in real
estate transactions; and
-
require licensees to complete continuing
education.
The bills are now in the House of
Representatives for consideration.
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