The Banking Department of Pennsylvania has introduced several initiatives designed to protect consumers from predatory lenders.
First, the department says it is backing six bills in the House (H.B.1079-1084) and six in the Senate (S.B.483-488) to combat abusive lending practices and protect consumers. The legislation was introduced last year, and four of the bills were passed unanimously by the Senate Banking and Insurance Committee in December.
Additionally, the banking department plans to implement protections that would prohibit mortgage brokers from exclusively receiving notifications from lenders on behalf of consumers, as well as survey some mortgage companies' customers during examinations, more closely scrutinize affiliated business arrangements and place greater emphasis on internal business controls.
This initiative would make it easier for officers and employees of mortgage companies to report suspicious activity or financial difficulties without fear of liability or adverse employment actions, the department says.
The banking department also plans to work closely with other states and federal agencies to identify and implement initiatives to better detect Ponzi schemes and other forms of fraud.
Finally, the department says it will work to ‘facilitate dialogue between homeowners and lenders’ so that consumers will feel more comfortable discussing mortgage troubles without fear of losing their homes.