Mortgage fraud prevention measures head to governor’s desk

Senate Bill 170 (Brubaker, R-Lancaster) would prohibit a mortgage broker or originator from being the exclusive recipient of communications to a consumer. The legislation would prevent brokers from withholding information about interest rates, fees or monthly payments, and it would ensure that consumers are informed of the terms of their mortgage.

House Bill 985 (Kessler, D-Berks) would help to prevent fraud by protecting mortgage company employees who report illegal activities or take part in an investigation, hearing or inquiry. The legislation would prevent an employer from taking actions such as reducing an employee’s salary or benefits, changing the terms of employment, or firing an employee. Currently, those protections only apply to these employees when they report a violation of the state Banking Code, but not if they report a violation of other law.