Penn. Regulator Wants To See 'Freeze'

HARRISBURG, Penn. - Secretary of Banking Steve Kaplan is calling on Pennsylvania lawmakers to pass stronger laws to protect home borrowers from abusive lending practices, some of which are causing families to lose their homes to foreclosure.

Kaplan testified at a House Intergovernmental Affairs hearing on House Resolution 415, which would call on Congress to "freeze" all existing home mortgages and declare a moratorium on foreclosures. Kaplan warned that any federal action should not preclude Pennsylvania from taking stronger steps of its own.

The Department of Banking is pressing for legislation that would strengthen licensing and education requirements for mortgage lenders and brokers; allow the department to more quickly notify the public about fines and other actions against companies; and protect more borrowers under the state interest law. The department also is backing legislation to improve oversight of real estate appraisers and to require mortgage companies to notify the state when they intend to foreclose on a property.

The bills (Senate bills 483, 484, 485, 486, 487, 488 and House bills 1079, 1080, 1081, 1082, 1083, 1084) were introduced earlier this year and key components are currently under consideration in the Senate Banking and Insurance and House Commerce committees. (c) 2007 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com