PA Warns Brokers on Misleading Solicitations

Meanwhile, the Pennsylvania Department of Banking has issued a letter to mortgage brokers warning that it will not tolerate the use of misleading or deceptive direct mail solicitations that use the name of other mortgage companies or lenders.William Schenck, Pennsylvania's secretary of banking, says in the letter that some brokers of first and second mortgages have been soliciting the customers of other lenders in such a way that "customers are led to believe that the solicitations have been sent by their current mortgage lender or that the current lender has shared the customer's private financial information with another entity." He goes on to say that such practices "are not ethical, will not be tolerated by the Department, and will be considered grounds for strong regulatory action." The department can be found online at http://www.banking.state.pa.us.