HARRISBURG PA – Two additional bills aimed at preventing mortgage fraud were signed into law Monday (June 29, 2009) by Pennsylvania Gov. Ed. Rendell, joining a package of five laws approved last year to target different aspects of the same problem.
The two latest pieces of legislation were spurred by a case in Berks County PA, Philadelphia’s KYW-AM Newsradio reported. Homeowners there were defrauded by a mortgage broker who took payments but never passed them on to lenders.
One of the new laws ensures that all communications regarding a loan go from lenders to homeowners, and not just go-betweens or third parties. The other protects mortgage company employees who blow the whistle on illegal practices.
This article was originally published on the Polley Associates‘ blog