HOUSE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

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

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 6, 2012   

AN ACT

Providing for the Homeowner Assistance Settlement Act;

establishing a fund for the purpose of funding the

Homeowner's Emergency Mortgage Assistance Program; and

providing for an appropriation the effect of noncompliance

<--

with the notice requirements of the Homeowner's Emergency

Mortgage Assistance Program and for allocations from the

fund.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Homeowner

Assistance Settlement Act.

Section 2.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Fund."  The Homeowner Assistance Settlement Fund established

in section 3(a).

"Homeowner Assistance Settlement Agreement."  The settlement

agreement and related documents entered into on February 9,

2012, by the Attorney General of the Commonwealth and the

leading United States mortgage servicing companies.

"Homeowner's Emergency Mortgage Assistance Program."  The

<--

program administered by the Pennsylvania Housing Finance Agency

and established under Article IV-C of the act of December 3,

1959 (P.L.1688, No.621), known as the Housing Finance Agency

Law.

Section 3.  Establishment of special fund, distribution of

<--

moneys and limitation on annual appropriation 

Homeowner Assistance Settlement Fund.

<--

(a)  Homeowner Assistance Settlement Fund Establishment.--

<--

There is established a special fund known as the Homeowner

Assistance Settlement Fund. All payments received by the

Commonwealth pursuant to the Homeowner Assistance Settlement

Agreement shall be deposited by the Treasury Department into the

fund and are hereby appropriated on a continuing basis.

<--

(b)  Distribution Allocation of funds.--The moneys in the

<--

fund shall be distributed allocated each fiscal year no later

<--

than July 1, by the State Treasurer until all settlement funds

<--

are expended, subject to the following limitations:

(1)   Ninety percent shall be distributed allocated to

<--

the Pennsylvania Housing Finance Agency for the purpose of

funding the Homeowner's Emergency Mortgage Assistance

Program.

(2)   Five percent shall be distributed allocated to the

<--

Office of Attorney General for the purpose of funding housing

consumer protection programs.

(3)  Five percent shall be distributed allocated to the

<--

Access to Justice Account established under 42 Pa.C.S. § 4904

(relating to establishment of Access to Justice Account) for

civil legal assistance related to housing issues.

(c)  Limitation on annual distribution allocation.--The

<--

annual distribution allocation of funds under subsection (b)

<--

shall not exceed $12,000,000 annually, except that in fiscal

<--

year 2012-2013 the amount shall not exceed $18,000,000.

Section 4.  Initial distribution allocation.

<--

The In addition to any allocation under section 3, the sum of

<--

$6,000,000 is hereby distributed allocated from the fund for

<--

fiscal year 2012-2013 to the Pennsylvania Housing Finance Agency

for the Homeowner's Emergency Mortgage Assistance Program.

Section 5.  Effect of noncompliance with notice requirements in

<--

the Homeowner's Emergency Mortgage Assistance

Program.

The following provisions shall apply relating to the

Homeowner's Emergency Mortgage Assistance Program:

(1)  If there has been a failure to comply with the

notice requirements of sections 402-C and 403-C of the act of

December 3, 1959 (P.L.1688, No.621), known as the Housing

Finance Agency Law, and such failure has been properly raised

in a legal action, including an action in foreclosure, for

money due under the mortgage obligation or to take possession

of the mortgagor's security, the court may dismiss the action

without prejudice, order the service of a corrected notice

during the action, impose a stay on any action or impose

<--

other appropriate remedies in the action to address the

interests, if any, of the mortgagor who has been prejudiced

thereby.

(2)  The failure of a mortgagee to comply with the

requirements of sections 402-C and 403-C of the Housing

Finance Agency Law must be raised in a legal action before

the earlier of entry of final judgment in an action in

<--

foreclosure or delivery of a sheriff's or marshal's deed in

<--

the foreclosure action or delivery of a deed by the

mortgagor.

(3)  The failure of a mortgagee to comply with the

requirements of sections 402-C and 403-C of the Housing

Finance Agency Law shall not deprive a court of jurisdiction

over any legal action, including an action in foreclosure,

for money due under the mortgage obligation or to take

possession of the mortgagor's security.

(4)  The failure of a mortgagee to comply with the

requirements of sections 402-C and 403-C of the Housing

Finance Agency Law shall not impair the conveyance or other

transfer of land and the title of property subject to a

mortgage obligation covered under the Housing Finance Agency

Law.

Section 6.  Severability.

The provisions of this act shall be severable. If any

provision shall be held to be invalid, illegal or otherwise

unenforceable, the validity, legality and enforceability of the

remaining provisions shall not be affected or impaired thereby.

Section 7.  Applicability.

The provisions of section 5 shall apply retroactive 

<--

retroactively to June 5, 1999.

<--

Section 5 8.  Effective date.

<--

This act shall take effect immediately.