Bill to License Loan Solicitors in Pennsylvania
TO: All Members MBA of PA
FROM: E. Robert Levy, Executive Director & Legislative Counsel
DATE: December 4, 2007
BILL TO LICENSE LOAN SOLICITORS IN PENNSYLVANIA VOTED FAVORABLY OUT OF COMMITTEE
I am pleased to advise that Senate Bill 487 (SB 487), the Bill we proposed and supported to license and educate loan solicitors (known as “mortgage originators” in the bill) was, with technical amendments, voted favorably by the Senate Banking and Insurance Committee this morning and will go to the floor of the Senate. The secondary mortgage version of the Bill, SB 488 was also voted favorably, with technical amendments, from Committee.
Other bills voted favorably include SB 484, which provides authority to the Department to disclose certain information relating to licensees and SB 485 which amends the Real Estate Appraisers Certification Act, adding to the board and increasing penalties.
SB 483, which was also favorably voted, would increase the application of the prepayment penalty provision in existing law from residential mortgage loans of $50,000 or less to loans of $200,000 or less. I had testified before the Committee at a prior meeting (there was no testimony today) suggesting that the Bill be amended to allow for prepayment penalties on a 3%-2%-1% of the amount prepaid during the first 3 years on refi’s with the originator providing the consumer with the choice of a loan without a prepayment penalty. The Bill’s sponsor was initially responsive to this suggestion but later decided against it. We will continue to pursue this approach as the Bill moves in the Senate and House (which has a Committee meeting (no testimony) scheduled for a vote December 18th on the House version of the same bills).
We will keep members informed of further action on these Bills as it occurs.
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