HARRISBURG, Pa. — The Pennsylvania Department of Banking held a public hearing Sept. 12 on its advance notice of proposed rulemaking concerning mortgage lending in the state, and representatives from consumer groups in support of the proposal and the mortgage lending industry which opposes it, turned out to express their opinions for and against the ANPR.
The mortgage industry objects to the ANPR for three reasons, reported the Pennsylvania Credit Union Association. First, it says the proposal amounts to a requirement that mortgage lenders "certify" a borrower's ability to repay a loan, which then create a defense for the borrower if the loan goes into default.
The mortgage industry also criticizes the proposal as the government taking away the right of borrowers to make their own financial decisions. Lastly, it objects to what was characterized as "subjective underwriting criteria" included in the proposal.
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The consumer advocate groups conversely, expressed their support of the proposal, saying it is a good start in addressing the abusive practices of predatory lenders in the state. They also stated the proposal would decrease the number of foreclosures in Pennsylvania.
The deadline for written comments to the ANPR was extended until Sept. 15.
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