PRINTER'S NO. 2522
No. 1616 Session of 2008
INTRODUCED BY GREENLEAF, RAFFERTY, COSTA, ERICKSON AND FONTANA,
NOVEMBER 18, 2008
REFERRED TO URBAN AFFAIRS AND HOUSING, NOVEMBER 18, 2008
AN ACT
1 Amending the act of December 3, 1959 (P.L.1688, No.621),
2 entitled, as amended, "An act to promote the health, safety
3 and welfare of the people of the Commonwealth by broadening
4 the market for housing for persons and families of low and
5 moderate income and alleviating shortages thereof, and by
6 assisting in the provision of housing for elderly persons
7 through the creation of the Pennsylvania Housing Finance
8 Agency as a public corporation and government
9 instrumentality; providing for the organization, membership
10 and administration of the agency, prescribing its general
11 powers and duties and the manner in which its funds are kept
12 and audited, empowering the agency to make housing loans to
13 qualified mortgagors upon the security of insured and
14 uninsured mortgages, defining qualified mortgagors and
15 providing for priorities among tenants in certain instances,
16 prescribing interest rates and other terms of housing loans,
17 permitting the agency to acquire real or personal property,
18 permitting the agency to make agreements with financial
19 institutions and Federal agencies, providing for the purchase
20 by persons of low and moderate income of housing units, and
21 approving the sale of housing units, permitting the agency to
22 sell housing loans, providing for the promulgation of
23 regulations and forms by the agency, prescribing penalties
24 for furnishing false information, empowering the agency to
25 borrow money upon its own credit by the issuance and sale of
26 bonds and notes and by giving security therefor, permitting
27 the refunding, redemption and purchase of such obligations by
28 the agency, prescribing remedies of holders of such bonds and
29 notes, exempting bonds and notes of the agency, the income
30 therefrom, and the income and revenues of the agency from
31 taxation, except transfer, death and gift taxes; making such
32 bonds and notes legal investments for certain purposes; and
33 indicating how the act shall become effective," establishing
1 mortgage foreclosure assistance programs and residential
2 mortgage foreclosure conciliation programs.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. The act of December 3, 1959 (P.L.1688, No.621),
6 known as the Housing Finance Agency Law, is amended by adding
7 articles to read:
8 ARTICLE IV-D
9 MORTGAGE FORECLOSURE ASSISTANCE PROGRAMS
10 Section 401-D. Home mortgage foreclosure assistance programs.
11 (a) Establishment.--The agency shall establish programs
12 directed at mortgagors facing mortgage foreclosure on their
13 primary residence.
14 (b) Programs.--The programs established by the agency under
15 subsection (a) shall assist mortgagors in recasting or adjusting
16 their current mortgage or refinancing their mortgage debt with a
17 new mortgage financed by the agency, in an effort to extend the
18 length of the loan, lower the interest rate, or providing other
19 similar relief.
20 (c) Eligibility requirements.--Any home mortgage foreclosure
21 assistance program established under this section or any
22 existing program shall be available regardless of income. In
23 addition, the primary residence must be located in this
24 Commonwealth and be a one-family or two-family, owner-occupied
25 structure.
26 Section 402-D. Agency guidelines.
27 Within 60 days of the effective date of this article, the
28 agency shall publish guidelines in the Pennsylvania Bulletin to
29 administer the provisions of this article.
30 ARTICLE IV-E
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1 RESIDENTIAL MORTGAGE FORECLOSURE CONCILIATION PROGRAMS
2 Section 401-E. Conciliation programs.
3 (a) Program creation.--The court of common pleas in each
4 county shall establish a residential mortgage foreclosure
5 conciliation program to assist mortgagors and mortgagees in
6 achieving a mutually agreeable resolution to a mortgage
7 foreclosure action.
8 (b) Model guidelines.--The Supreme Court shall, in
9 consultation with the agency, develop model guidelines for the
10 implementation of this article.
11 (c) Eligibility requirements.--
12 (1) All mortgage foreclosure actions involving primary
13 residences which are subject to execution to enforce a
14 residential mortgage shall be scheduled for a conciliation
15 conference. The property must be located in this Commonwealth
16 and be a one-family or two-family, owner occupied structure.
17 (2) Mortgage foreclosure actions involving real property
18 which is neither owner-occupied nor residential does not
19 qualify for a conciliation conference under this article.
20 Section 402-E. Complaint and notification.
21 Once a mortgage foreclosure action is initiated by a
22 mortgagee with the filing of a complaint in the county
23 prothonotary's office, the service of the complaint shall
24 include a notice from the court of common pleas informing the
25 mortgagor of the court's residential mortgage foreclosure
26 conciliation program and provide a scheduled date and time of
27 the conciliation conference. The court shall simultaneously send
28 a copy of the notice to the mortgagee and the agency.
29 Section 403-E. Conciliation conference.
30 (a) Presiding officer.--The conciliation conference shall be
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1 conducted by a civil case manager or other person designated by
2 the court, a judge pro temp who possesses experience in the
3 subject matter or a judge of the court of common pleas.
4 (b) Issues to be addressed.--The conciliation conference
5 shall address all issues of foreclosure, including:
6 (1) Whether the mortgagor is represented and if not
7 represented, whether volunteer counsel may be available and
8 appointed.
9 (2) Whether the mortgagor met with a representative of a
10 consumer credit counseling agency.
11 (3) Whether the consumer credit counseling agency
12 prepared an assessment or report providing options to help
13 resolve the foreclosure action.
14 (4) Copies of any completed application for mortgage or
15 financial assistance.
16 (5) Mortgagor's income and expense information.
17 (6) Mortgagor's employment status.
18 (7) Restructuring of the mortgage debt.
19 (8) Whether the case may proceed to sheriff sale since
20 there is no prospect of an amicable resolution.
21 (c) Effect of failure to attend conference.--If a mortgagor
22 fails to appear for the mandatory conciliatory conference, the
23 requirement for the conference shall be deemed satisfied upon
24 verification that the required notice was served, and if so, an
25 order shall be issued authorizing the mortgagee to proceed with
26 the action.
27 (d) Reporting to agency.--The court shall notify the agency
28 of the outcome of the conciliation conference in a format
29 developed by the agency.
30 Section 404-E. Sheriff sale.
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1 Notwithstanding any other provision of law to the contrary,
2 primary residences which are subject to execution to enforce a
3 residential mortgage cannot proceed to a sheriff sale until a
4 conciliation conference is held or the mortgagor fails to appear
5 for the conference as set forth in subsection (c).
6 Section 2. This act shall take effect in 60 days.
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