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For Immediate Release
Mortgage Fraud Prevention Bills Signed Into LawHARRISBURG – Two bills that will help protect consumers from mortgage fraud were signed into law today, according to Sen. Mike Brubaker (R-36). Senate Bill 170, sponsored by Brubaker, will prohibit a mortgage broker or originator from being the exclusive recipient of communications to a consumer. The legislation prevents 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. House Bill 985, sponsored by Rep. David Kessler (D-130), will protect mortgage company employees who report illegal activities or take part in an investigation, hearing or inquiry. The legislation prevents an employer from taking actions such as reducing an employee's salary or benefits, changing the terms of employment, or firing an employee. The legislation accomplishes the same goal as Senate Bill 171, legislation introduced by Brubaker in January. 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. Both bills were drafted with input from the Department of Banking to ensure they offered consumers adequate protection from fraud. "The OPFM scandal caused a great deal of hardship for local families, and we cannot allow other con artists to use the same methods to swindle homeowners again," Brubaker said. "I am thankful that these new fraud prevention measures will offer greater protections for homeowners to prevent a similar scandal in the future." Brubaker was joined at the bill signing by several homeowners from Lancaster, Chester and Berks Counties who were victimized in the scandal, including Michelle Weaver, Bernie Lynch, Richard Grenoble, Dusty Rhoads and Mike Hartz. CONTACT: Nathan Flood | ||
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