|Posted:||March 7, 2017 12:39 PM|
|From:||Representative Ryan E. Mackenzie|
|To:||All House members|
|Subject:||Mortgage Servicer Licensing and Regulation Legislation|
|I am preparing to introduce legislation that will amend Title 7 (Banks and Banking) to provide for the licensure and regulation of mortgage servicers.
As you may know, mortgage servicers handle the daily functions of a mortgage for a consumer. The duties of servicers vary, but many times include collecting and recording mortgage payments, payments of taxes and insurance from escrow accounts, calculating interest rates on adjustable rate mortgages, negotiating loan modifications and supervising in foreclosures when necessary. Essentially, a mortgage servicer is the ‘middle-man’ between a lender and the consumer.
With that said, it has come to my attention that non-bank related mortgage servicers are unlicensed and unregulated in Pennsylvania. My legislation would require mortgage servicers to be licensed by the Department of Banking and Securities under the Mortgage Licensing Act where they would be required to establish a net worth of over $250,000 and maintain a surety bond of $500,000 for the protection of their customers. The servicers would be required to comply with a series of consumer protection provisions in the bill and be subject to regular compliance examinations by the Department.
The goal of the legislation is to insure that Pennsylvania mortgage borrowing consumers are treated fairly by their mortgage servicers and have a state government agency to assist should there be any issues with their mortgage.
There are currently 35 other states that license and regulate mortgage servicers. The legislation has the full supported of the Department of Banking and Securities.
I hope that you will join me by cosponsoring this legislation.
Introduced as HB780