Pennsylvania Governor Signs Fraud Protection Bills

Pennsylvania Governor Edward G. Rendell signed a pair of bills to combat mortgage fraud by strengthening communication between homeowners and their lenders and encouraging employees at mortgage companies to report illegal activity. "These bills will provide increased protection for Pennsylvania consumers shopping for a mortgage or refinancing their homes," said Governor Rendell. "They represent a critical step forward in our strategy to combat mortgage lending fraud and abuse in Pennsylvania." The first law, Senate Bill 170, will prohibit a mortgage broker or originator from being the sole recipient of communications from lenders. This will help ensure that consumers receive monthly statements and other notices intended for them by their lenders. The second measure, House Bill 985, will shield mortgage company employees who report illegal activity or take part in an investigation from retaliation through reduced salaries, termination or other actions taken by their employer. Both bills take effect in 60 days.