CAPITOL BRIEFS - JUNE 13, 2008
NAR Issues Call-for-Action on Higher Loan Limits
NAR has issued a Call-for-Action to help make the FHA, Fannie Mae and Freddie Mac loan limits permanent. The limits were enacted in the bipartisan Economic Stimulus Act, signed by President Bush last February, but which expires on December 31, 2008. The legislation raised the maximum loan limits in high cost areas to $729,750 and helps homeowners in 240 counties in 26 states. NAR believes that making the higher loan limits permanent will increase investor confidence and the availability of safe, fair, affordable mortgage credit for borrowers and those wishing to refinance. Use the
NAR Action Center to contact Senators Casey and Specter, and ask them to make the higher loan limits permanent.
House Passes Legislation Targeting Unfair Employer Practices
Under legislation passed by the House this week, employers would no longer be able to misclassify their workers as independent contractors to avoid paying state and federal taxes and workers’ compensation premiums. PAR was able to amend the bill to exempt real estate licensees from the provisions of the legislation, and the bill now only focuses on construction and commercial carrier industries.
House Bill 2400 (Lentz, D-Delaware) would establish that individuals who perform services in the construction or commercial carrier industries are employees of the party that pays their wages. The bill would make intentional misclassification of an employee a third-degree felony and impose fines. The legislation, which passed by a vote of 122-76, was referred to the Senate for consideration.
House Committee Forwards Mortgage Reform Bills
The House Commerce Committee has voted unanimously in favor of three Senate bills intended to reform mortgage lending practices in Pennsylvania. Senator Browne (R-Lehigh) introduced a six-bill package based on the findings of a mortgage industry study mandated by House Resolution 364, which was adopted in 2003. The full package of legislation passed the Senate in March, and was referred to the House Commerce Committee.
The Committee moved three pieces of the package: Senate Bill 483 would amend the Loan Interest and Protection Law to increase the monetary cap in the act from $50,000 to the base figure of $217,873, as adjusted annually for inflation; Senate Bill 484 would permit the Department of Banking to publicly release information on pending enforcement actions and fines levied against non-depository licensees; and Senate Bill 486 would amend the Housing Finance Agency Law to require lenders to send copies of foreclosure notices to the Pennsylvania Housing Finance Agency so that mortgage foreclosures can be monitored on a statewide basis.
PAR had submitted comments to the House Commerce Committee regarding concerns with Senate Bill 487 and the definition of mortgage originator. PAR believes the definition as “a person who acts in other than a clerical or ministerial capacity” could encompass licensees who are acting in their capacity as agent for the consumer. The Committee is currently working on amendments to SB 487 and did not move the bill.
Senate Bills 483, 484, and 486 are headed to the full House of Representatives for consideration.
PAR to Present Testimony at Urban Renewal Hearings
At the June Business Meetings, the PAR Board of Directors approved the Urban Renewal Task Force
recommendations for amendments on several pieces of legislation. Hearings have been scheduled by the House and Senate Urban Affairs Committees to discuss
House Bill 2445 (Eachus, D-Luzerne) and
Senate Bill 1291 (Rhoades, R-Schuylkill). The legislation, which are identical companion pieces, would establish a third-party conservator program, allow the state or a municipality to deny a license if the applicant owns property which is tax delinquent, and establish a registry of code violators. Kim Skumanick, task force chair, will provide testimony at both hearings that is consistent with the approved recommendations.
Senate Approves Funding for Water and Sewer Projects
The state Senate has unanimously approved legislation to provide $750 million in funding for water and sewer projects, flood control projects, and the repair and rehabilitation of high hazard dams owned by eligible applicants.
Senate Bill 2 (Earll, R-Erie) has been dubbed the H2O PA bond issue, and is a $750 million water and sewer funding plan to be financed with revenue from the Pennsylvania Gaming Economic Development and Tourism Fund. The program will be administered by the Commonwealth Financing Authority (CFA). The legislation was referred to the House for consideration.
House Passes Bill to Reduce Mortgage Insurance Costs
House Bill 2428 (Frankel, D-Allegheny) would ban mortgage lenders from requiring homebuyers or current homeowners to obtain property insurance coverage that exceeds the replacement value of the home, buildings and structures for which the loan has been secured. The legislation, which passed the House by a vote of 199-0, stipulates that lenders cannot require borrowers to insure the value of the land, and applies only to owner-occupied residences. The bill was referred to the Senate for consideration.
Scrap Metal Bill Approved by Senate Committee
Legislation that would develop a registry for scrap metal sellers in Pennsylvania and penalize people who steal scrap metal from construction sites has passed the Senate Environmental Resources and Energy Committee.
House Bill 1742 (Pashinski, D-Luzerne) passed the House in February by a vote of 151-47. The Committee amended the bill to allow scrap processors or recycling facilities to hold stolen scrap materials for 36 hours instead of the original proposal of three days. Pashinski introduced the legislation to help reduce the number of scrap metal thefts at building developments across the state.
Committee Passes Bill to Allow for Electronic Publication of Legal Notices
Legislation approved by the Senate Communications and Technology Committee would give municipalities the ability to publish legal notices electronically in lieu of newspaper advertisements.
Senate Bill 1087 (Robbins, R-Mercer) provides that the Center for Local Government Services will create and maintain a list of the names and Internet websites of all government units who are posting legal notices electronically. Individuals would be able to use the centralized location to view municipal meeting agendas, proposed ordinances, and requests for bids or proposals. The bill received two negative votes in Committee, mainly over concerns that the bill may negate the role of newspapers in publishing legal notices. The bill was referred to the full Senate for consideration.