| HOUSE AMENDED |
| PRIOR PRINTER'S NOS. 1988, 2079, 2164, 2212 | PRINTER'S NO. 2257 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY GORDNER, PILEGGI, COSTA, BROWNE, WAUGH, ERICKSON, RAFFERTY, FONTANA, BAKER, ALLOWAY, VANCE, STACK, YUDICHAK, FERLO, PIPPY, GREENLEAF, SCHWANK, WOZNIAK, BLAKE, BREWSTER, ARGALL, ORIE, LEACH, VOGEL, DINNIMAN, BOSCOLA, MENSCH AND FARNESE, MARCH 6, 2012 |
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| AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 6, 2012 |
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| AN ACT |
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1 | Providing for the Homeowner Assistance Settlement Act; |
2 | establishing a fund for the purpose of funding the |
3 | Homeowner's Emergency Mortgage Assistance Program; and |
4 | providing for an appropriation the effect of noncompliance | <-- |
5 | with the notice requirements of the Homeowner's Emergency |
6 | Mortgage Assistance Program and for allocations from the |
7 | fund. |
8 | The General Assembly of the Commonwealth of Pennsylvania |
9 | hereby enacts as follows: |
10 | Section 1. Short title. |
11 | This act shall be known and may be cited as the Homeowner |
12 | Assistance Settlement Act. |
13 | Section 2. Definitions. |
14 | The following words and phrases when used in this act shall |
15 | have the meanings given to them in this section unless the |
16 | context clearly indicates otherwise: |
17 | "Fund." The Homeowner Assistance Settlement Fund established |
18 | in section 3(a). |
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1 | "Homeowner Assistance Settlement Agreement." The settlement |
2 | agreement and related documents entered into on February 9, |
3 | 2012, by the Attorney General of the Commonwealth and the |
4 | leading United States mortgage servicing companies. |
5 | "Homeowner's Emergency Mortgage Assistance Program." The | <-- |
6 | program administered by the Pennsylvania Housing Finance Agency |
7 | and established under Article IV-C of the act of December 3, |
8 | 1959 (P.L.1688, No.621), known as the Housing Finance Agency |
9 | Law. |
10 | Section 3. Establishment of special fund, distribution of | <-- |
11 | moneys and limitation on annual appropriation |
12 | Homeowner Assistance Settlement Fund. | <-- |
13 | (a) Homeowner Assistance Settlement Fund Establishment.-- | <-- |
14 | There is established a special fund known as the Homeowner |
15 | Assistance Settlement Fund. All payments received by the |
16 | Commonwealth pursuant to the Homeowner Assistance Settlement |
17 | Agreement shall be deposited by the Treasury Department into the |
18 | fund and are hereby appropriated on a continuing basis. | <-- |
19 | (b) Distribution Allocation of funds.--The moneys in the | <-- |
20 | fund shall be distributed allocated each fiscal year no later | <-- |
21 | than July 1, by the State Treasurer until all settlement funds | <-- |
22 | are expended, subject to the following limitations: |
23 | (1) Ninety percent shall be distributed allocated to | <-- |
24 | the Pennsylvania Housing Finance Agency for the purpose of |
25 | funding the Homeowner's Emergency Mortgage Assistance |
26 | Program. |
27 | (2) Five percent shall be distributed allocated to the | <-- |
28 | Office of Attorney General for the purpose of funding housing |
29 | consumer protection programs. |
30 | (3) Five percent shall be distributed allocated to the | <-- |
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1 | Access to Justice Account established under 42 Pa.C.S. § 4904 |
2 | (relating to establishment of Access to Justice Account) for |
3 | civil legal assistance related to housing issues. |
4 | (c) Limitation on annual distribution allocation.--The | <-- |
5 | annual distribution allocation of funds under subsection (b) | <-- |
6 | shall not exceed $12,000,000 annually, except that in fiscal | <-- |
7 | year 2012-2013 the amount shall not exceed $18,000,000. |
8 | Section 4. Initial distribution allocation. | <-- |
9 | The In addition to any allocation under section 3, the sum of | <-- |
10 | $6,000,000 is hereby distributed allocated from the fund for | <-- |
11 | fiscal year 2012-2013 to the Pennsylvania Housing Finance Agency |
12 | for the Homeowner's Emergency Mortgage Assistance Program. |
13 | Section 5. Effect of noncompliance with notice requirements in | <-- |
14 | the Homeowner's Emergency Mortgage Assistance |
15 | Program. |
16 | The following provisions shall apply relating to the |
17 | Homeowner's Emergency Mortgage Assistance Program: |
18 | (1) If there has been a failure to comply with the |
19 | notice requirements of sections 402-C and 403-C of the act of |
20 | December 3, 1959 (P.L.1688, No.621), known as the Housing |
21 | Finance Agency Law, and such failure has been properly raised |
22 | in a legal action, including an action in foreclosure, for |
23 | money due under the mortgage obligation or to take possession |
24 | of the mortgagor's security, the court may dismiss the action |
25 | without prejudice, order the service of a corrected notice |
26 | during the action, impose a stay on any action or impose | <-- |
27 | other appropriate remedies in the action to address the |
28 | interests, if any, of the mortgagor who has been prejudiced |
29 | thereby. |
30 | (2) The failure of a mortgagee to comply with the |
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1 | requirements of sections 402-C and 403-C of the Housing |
2 | Finance Agency Law must be raised in a legal action before |
3 | the earlier of entry of final judgment in an action in | <-- |
4 | foreclosure or delivery of a sheriff's or marshal's deed in | <-- |
5 | the foreclosure action or delivery of a deed by the |
6 | mortgagor. |
7 | (3) The failure of a mortgagee to comply with the |
8 | requirements of sections 402-C and 403-C of the Housing |
9 | Finance Agency Law shall not deprive a court of jurisdiction |
10 | over any legal action, including an action in foreclosure, |
11 | for money due under the mortgage obligation or to take |
12 | possession of the mortgagor's security. |
13 | (4) The failure of a mortgagee to comply with the |
14 | requirements of sections 402-C and 403-C of the Housing |
15 | Finance Agency Law shall not impair the conveyance or other |
16 | transfer of land and the title of property subject to a |
17 | mortgage obligation covered under the Housing Finance Agency |
18 | Law. |
19 | Section 6. Severability. |
20 | The provisions of this act shall be severable. If any |
21 | provision shall be held to be invalid, illegal or otherwise |
22 | unenforceable, the validity, legality and enforceability of the |
23 | remaining provisions shall not be affected or impaired thereby. |
24 | Section 7. Applicability. |
25 | The provisions of section 5 shall apply retroactive | <-- |
26 | retroactively to June 5, 1999. | <-- |
27 | Section 5 8. Effective date. | <-- |
28 | This act shall take effect immediately. |
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