Mortgage Protection Bills are a ‘Good Start’ Toward a Fair Housing Industry

In March, the state Senate approved a package of mortgage foreclosure protection bills (Senate Bills 483, 484, 485, 486, 487 and 488), which would increase penalties, give the Pennsylvania Department of Banking new enforcement powers to get predatory lenders out of the mortgage industry, and create licensure for mortgage originators.

This package is a good start to ensuring that Pennsylvania has a fair mortgage industry. It would protect consumers and help strengthen the mortgage industry, which has been reeling from the effects of an economic slowdown and bad loans.

As Pennsylvania prepares for more difficult economic times, it is imperative that we craft proactive solutions to safeguard our housing industry. The housing industry is not only important to consumers and the American Dream, it is an important part of our overall economy.

We also want to make sure that no one takes advantage of homeowners who are facing foreclosure, as well as future homebuyers. The people who help us with the biggest financial purchase in our lifetime are not required to have a license under current Pennsylvania law. This package addresses that need.  If you would like more information regarding mortgage assistance, please call the PA Department of Banking at 1-800-PA Banks.

Help is Available to Avoid Foreclosure

The Pennsylvania Housing Finance Agency (PHFA) offers the Homeowner’s Emergency Mortgage Assistance Program (HEMAP), which helps families avoid foreclosure.  HEMAP offers low-interest loans to help homeowners cover their delinquent payments. If approved, applicants can either get continuing or non-continuing mortgage assistance.

Those who don't qualify for a mortgage refinance under the REAL program can apply for the Homeowner Equity Recovery Opportunity (HERO) program. HERO offers loans for homeowners who, because of credit or other issues, can’t afford their current mortgage payments and are not eligible for other programs that could save their homes from foreclosure.

Unlike the REAL program, HERO loans are directly made by PHFA, which may negotiate with current mortgage-holders to reduce the amount owed on applicants’ properties.

Another program offered by PHFA is the Refinance to an Affordable Loan (REAL) Program.  The REAL program was created to help people who have seen their adjustable rate mortgages skyrocket, and they need to refinance the mortgage to stay in their home. REAL offers attractive 30-year fixed rates and 100 percent financing with flexible credit underwriting to help homeowners keep their houses.

To find out more about the HEMAP, HERO and REAL programs including eligibility guidelines, please call 1-800-822-1174 or visit www.phfa.org.