Senator Lisa Baker (R-Luzerne) voted for a six-bill package that is aimed at cracking down on predatory and deceptive lending practices in Pennsylvania by making commonsense reforms to the state’s mortgage industry.
Baker, who cosponsored a number of the bills, said the legislation would make changes to better protect consumers in one of their most important financial decisions.
“Approximately 25,000 homes in Pennsylvania have been lost through foreclosure during 2005 and 2006,” Baker said. “And while the impact is most acutely felt by those families who have lost there homes, foreclosures are also dramatically affecting our neighborhoods and communities by decreasing property values.”
In addition to increased penalties and public disclosure of those involved in practices that are harmful to consumers, the package also includes a new licensing category for individual mortgage originators who deal directly with clients.
Baker said current state law requires mortgage lenders and brokers to be licensed, but not those who originate loans. She believes it is important to include loan originators, as they often negotiate terms and serve as the guide for people during the detailed process of completing loan contracts.
“This a common sense approach to raising standards and protecting consumers from many of the excessive practices we’ve seen in recent years,” Baker said.
Contact: Brian Grove