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For Immediate Release
March 10, 2009
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Senate Panel Approves Brubaker Legislation to Protect Consumers From Mortgage
Fraud
HARRISBURG – The Senate Banking and Insurance Committee unanimously approved
two bills today to protect consumers from fraud perpetrated by unscrupulous
mortgage brokers.
"Given the economic struggles that our state and nation are facing, it is
vital to ensure that consumers are protected from financial predators who would
harm others for their own personal gain," said Sen. Mike Brubaker (R-36), who
sponsored both bills. "I would like to thank my colleagues for moving these
important bills forward to be considered by the full Senate."
Senate Bill 170 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.
Senate Bill 171 would also help to prevent fraud by protecting mortgage
company employees that 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.
Brubaker introduced the bills 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.
Brubaker said that both bills were drafted with input from the Department of
Banking to ensure they offered consumers adequate protection from fraud.
Both bills will now move to the Senate floor for consideration.
Contact:
Kristin Crawford
(717)787-4420 | 
