PRINTER'S NO. 2450
No. 364 Session of 2003
INTRODUCED BY DALLY, LEWIS, SCAVELLO, BROWNE, REICHLEY, HARHART,
BIRMELIN AND TIGUE, JULY 17, 2003
REFERRED TO COMMITTEE ON RULES, JULY 17, 2003
A RESOLUTION
1 Urging the Secretary of Banking to study residential lending
2 practices in Pennsylvania and to submit a report to the
3 General Assembly.
4 WHEREAS, The General Assembly has a compelling State interest
5 in protecting its citizens from losing their homes through
6 unscrupulous lending practices; and
7 WHEREAS, In 2001 the General Assembly amended the Mortgage
8 Bankers and Brokers and Consumer Equity Protection Act in order
9 to establish principles of lending and define unlawful
10 practices; and
11 WHEREAS, The General Assembly has established a Homeowner's
12 Emergency Mortgage Assistance Program to provide temporary
13 financial assistance to those citizens in danger of losing their
14 homes through foreclosure; and
15 WHEREAS, This program can be overwhelmed by demand for
16 financial assistance, necessitating infusion by the General
17 Assembly of additional appropriations; and
18 WHEREAS, The National Delinquency Survey performed by the
1 Mortgage Bankers Association of America found that while in the
2 fourth quarter of 2002 only 0.79% of prime conventional loans in
3 Pennsylvania were in foreclosure, more than 12% of subprime
4 conventional loans were in foreclosure; and
5 WHEREAS, This survey may give the first indication of an
6 alarming trend which could affect more homeowners and jeopardize
7 the financial solvency of the Homeowner's Emergency Mortgage
8 Assistance Program; and
9 WHEREAS, It is the responsibility of our State government to
10 ensure that adequate information exists for public policymakers
11 to evaluate the effectiveness of regulatory and financial
12 assistance programs; therefore be it
13 RESOLVED, That the House of Representatives urge the
14 Secretary of Banking to conduct a study of residential lending
15 practices in Pennsylvania, to identify trends in foreclosures
16 and to document lending practices which are disadvantageous to
17 Pennsylvania consumers; and be it further
18 RESOLVED, That the Secretary of Banking be encouraged to
19 provide recommendations, either legislative or administrative,
20 in a written report to the Chief Clerk of the House of
21 Representatives and the chair and minority chair of the Commerce
22 Committee; and be it further
23 RESOLVED, That the Secretary of Banking submit this report
24 within one year.
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