HARRISBURG, Pa. – State Rep. Mario Scavello (R-176), a member of the House Finance Committee, is in the final stages of preparation to introduce legislation designed to protect first-time homebuyers and new residents from predatory lending practices that result in foreclosures.
"There needs to be adequate regulation of the mortgage industry to protect homeowners from losing their homes due to foreclosures," Scavello stated. "The number of foreclosures in Monroe County has been disproportionate compared to the rest of the state."
In March 2005, the Department of Banking released its statewide mortgage foreclosure report, Losing the American Dream: A Report on Residential Mortgage Foreclosures and Abusive Lending Practices in Pennsylvania that confirmed a high rate of foreclosures in the state and found that subprime mortgages account for the majority of loans that result in foreclosure action.
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Among the provisions of Scavello's bill it: creates a new licensing category for individual mortgage loan solicitors; creates a pre-licensing category for individual mortgage loan solicitors; eliminates the builder and real estate agent licensing exemptions in Chapter 3; and amends the employee exception to account for loan solicitor licensing.
According to the Pennsylvania Department of Banking's Web site, Scavello is currently circulating a co-sponsorship memo asking other members of the House Banking Committee to sign on to his bill.
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