Pennsylvania Changes rules for MB & Appraisers

[Riick]

Ed Rendell, Governor of Pennsylvania today signed into law Bills that:

• Require loan salespeople (not just their employers) to be licensed by the Department of Banking. "....the person selling them a mortgage has successfully passed a background check, completed training specific to state and federal mortgage laws, passed a test to prove their knowledge and is licensed by the Department of Banking."
• Increase maximum fines for misconduct by real estate appraisers from $1,000 to $10,000. "In the run up to the housing boom, there was significant pressure on appraisers to set values to make certain types of mortgages more attractive and attainable, making it possible for buyers to borrow more than the home was actually worth. This new law extends the consumer protection and lending expertise of the state's appraisers' board by adding the Attorney General and the Secretary of Banking to its membership. It also increases the maximum penalty for appraiser misconduct to $10,000 per violation."
  
• Require mortgage companies to notify the State when they intend to foreclose.
• Restrict mortgage prepayment penalties. (Aw Jeez, no free money?)

Wondering how many other States will do likewise.

 

[Elliott]

Sounds like typical feel good legislation that will raise revenue for the state.
Licensing lender will accomplish what? Did licensing appraisers improve
the appraisal profession(sic)?

So they increased the fines on appraisers because of the pressure others
were putting on appraisers. That almost makes sense. I guess AGs would
rather perp walk appraisers than druggies. Make sure your E&O is paid up.

Foreclosure notification to the state? So politicians can run to neighborhoods
and bemoan foreclosure in front of a TV news crew?

 

[TC]

The cynic in me says that Governor Swindell did it to raise tax revenue. That's all that guy knows.

TC

 

[Riick]

MB coursework probably in: reading, writing, lying, and pickpocketing <joke, just a joke>

Previous maximum levels of Board fines at $1k small enough for Skip to say - cost of doing business.

Good part is that Board is: "...adding the Attorney General and the Secretary of Banking to its membership. "

Somehow I think those letters to LandAm about Brokers illegally doing BPO's for the REO properties will suddenly have a Little (cough, cough) WEIGHT with the Attorney General on the Board.
Might do business some GOOD!