Mortgage reform legislation signed

HARRISBURG — Rep. John Siptroth, D-Monroe/Pike, attended Gov. Ed Rendell’s Tuesday bill-signing ceremony for mortgage reform legislation in Exeter Township, Berks County. “The Pocono region has been hit especially hard by the foreclosure crisis in this country,” Siptroth said. “The laws created by this reform package will ensure that the mortgage industry in Pennsylvania is regulated and that consumers are no longer subject to unfair lending practices.” The package of bills was passed in reaction to the sub-prime mortgage crisis, as well as the mortgage scheme run by former Exeter Township mortgage broker Wesley Snyder. Siptroth noted that language from his mortgage reform legislation (H.B. 1079) was included in the bill package signed by the governor today. Siptroth’s bill would have amended the Mortgage Bankers and Brokers and Consumer Equity Protection Act to require the licensing of mortgage originators. Siptroth said licensing originators is key to mortgage reform because originators are the main contact for most borrowers. House Bill 2179, signed into law today, creates a single license for mortgage bankers and brokers and includes Siptroth’s language to create a new licensing category for mortgage originators. The law also requires pre-license and continuing education programs for brokers and originators. Siptroth is a co-sponsor of H.B. 2179 and voted for the bill when it was before the House. “I have been concerned about the significant mortgage problem in northeast Pennsylvania and across the state since taking office in 2005,” Siptroth said. “After years of hard work, including public hearings held in 2006 and introducing several measures addressing the issue, it is gratifying to see that we have acknowledged the problem and are starting to take action.”