by KYW's Tony Romeo
Pennsylvania Governor Ed Rendell has signed a pair of bills designed to prevent mortgage fraud.
Last year, Governor Rendell signed a package of five bills aimed at reforming the mortgage industry, and now, he’s signed two more that were spurred by a Berks County case in which homeowners were defrauded by a mortgage broker who accepted their payments but never forwarded them to companies.
One bill signed by the governor will ensure that all communications from lenders go to homeowners - not just mortgage brokers or originators:
“What used to happen is, the mortgage originator could help the fraudulent process by making sure that borrowers didn’t get basic information about when their rate would change, or about things that were in the mortgage package itself, or whether they were behind in their payments.”
The governor has signed another bill that will protect mortgage company employees who report illegal activities or cooperate with authorities.
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