For Immediate Release
11/13/08

Senator Brubaker Introduces Legislation to Prevent Mortgage Fraud

HARRISBURG – Sen. Mike Brubaker (R-36) introduced two bills today that would protect consumers from mortgage fraud and protect employees of mortgage companies who report illegal activities.

Senate Bill 1614 would prohibit a mortgage broker or originator from being the exclusive recipient of communications to a consumer. The bill would ensure that consumers are informed of the terms of their mortgage, and it would prevent brokers from withholding information about interest rates, fees or monthly payments.

Brubaker also introduced Senate Bill 1615, legislation that would 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 SB 1614 and SB 1615 in response to the OPFM mortgage scandal that resulted in hundreds of Lancaster County homeowners losing millions of dollars due to a wide-ranging mortgage and investment fraud scheme.

"The recent fraud against hundreds of area homeowners left many wondering whether they would lose their homes and their life savings," Brubaker said. "The General Assembly needs to do our part to ensure that Pennsylvania homeowners are not victimized by this type of scam again."

Brubaker said that the Senate is not expected to take any roll call votes during the current legislative session, so the bills will not be considered by the Senate in 2008. However, Brubaker said that introducing the bills at the end of the current legislative session would give the bills added momentum in 2009.

"Introducing this legislation now will allow us to raise awareness of this important issue in the coming weeks and give us additional time to fine-tune these bills before the Senate reconvenes in January," Brubaker said. "I will reintroduce these bills at the beginning of the 2009-10 Legislative session with the goal of seeing them signed into law next year."

These measures will be introduced in the State House of Representatives by Representative David Kessler (D-130).  Berks County homeowners, represented by Kessler, were greatly impacted by the OPFM mortgage scandal.  "We have to ensure that this never happens again," said Kessler.
 

Contact:

Kristin Crawford
(717)787-4420

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