|
|
FOR IMMEDIATE RELEASE |
|
State
Rep. David Kessler |
Governor signs Kessler mortgage fraud prevention measure, related bill
HARRISBURG, June 29 – Gov. Ed Rendell today signed into law state Rep. David Kessler's legislation that will help protect consumers from mortgage fraud, as well as a related bill Kessler supported.
House Bill 985, introduced by Kessler, D-Berks, will help to prevent fraud by protecting mortgage company employees who report illegal activities or take part in an investigation, hearing or inquiry. The legislation will prevent an employer from taking actions such as reducing an employee’s salary or benefits, changing the terms of employment or firing an employee. Until now, those protections only applied to these employees when they report a violation of the state Banking Code, but not if they reported a violation of other law.
"The PFM scandal has had a devastating impact on many Berks County homeowners. These new laws will go a long way toward ensuring that this never happens again in Pennsylvania," Kessler said.
Kessler introduced the House version of the other bill signed into law today, S.B. 170, which will prohibit a mortgage broker or originator from being the exclusive recipient of communications to a consumer, such as a mortgage payment invoice or 1096 interest statement.
That new law, sponsored by Sen. Mike Brubaker, R-Lancaster/Chester, will prevent brokers from withholding information about interest rates, fees or monthly payments, and it will ensure that consumers are informed of the terms of their mortgage.
Governor Rendell said, "I commend Representative Kessler and Senator Brubaker for introducing and pressing for quick enactment of these important bills. With their help, we have accomplished a lot in the past few years to require much greater oversight and protections for Pennsylvania’s homeowners.
"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," he added.
Both measures were drafted with input from the Department of Banking to ensure they offered consumers adequate protection from fraud.
The legislation was introduced in response to the PFM mortgage scandal that swindled more than $26 million from Pennsylvania homeowners.