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For Immediate
Release
6/23/09
Mortgage Fraud Prevention Measures Head to
Governor's Desk
HARRISBURG – Two bills that would help protect consumers from mortgage fraud
have passed the Senate and House and will head to the governor's desk for his
signature, according to Sen. Mike Brubaker (R-36) and Rep. David Kessler
(D-130).
Senate Bill 170, sponsored by Brubaker, would prohibit a mortgage broker or
originator from being the exclusive recipient of communications to a consumer.
The legislation would prevent brokers from withholding information about
interest rates, fees or monthly payments, and it would ensure that consumers are
informed of the terms of their mortgage.
"No homeowner should have to suffer through the financial pain and
uncertainty of falling victim to mortgage fraud," Brubaker said. "This new law
will ensure that consumers have access to vital mortgage information to make
certain that Pennsylvania families are not ripped off by unscrupulous mortgage
brokers and other con artists."
House Bill 985, sponsored by Kessler, 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. Currently, those
protections only apply to these employees when they report a violation of the
state Banking Code, but not if they report a violation of other law.
"The OPFM scandal has had a devastating impact on many Berks County
homeowners. These bills would go a long way toward ensuring that this never
happens again," Kessler said.
Both bills were drafted with input from the Department of Banking to ensure
they offered consumers adequate protection from fraud.
The bills were introduced in response to the OPFM mortgage scandal that
swindled more than $26 million from Pennsylvania homeowners. Brubaker said that
hundreds of Lancaster County homeowners lost millions of dollars due to the
mortgage and investment fraud scheme.
Contact:
Nathan Flood (717) 787-4420 (Senator Brubaker)
Ben Turner (717) 787-7895 (Representative Kessler)
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