Pennsylvania Governor Ed Rendell will sign a package of mortgage reform bills today at noon. The five bills are designed to protect homebuyers, strengthen oversight of the mortgage industry and end key lending practices that leave homeowners vulnerable to foreclosure. Pennsylvania will join a number of states that have already moved to complicate or freeze the default management process.
Those of you who lived through the predatory lending legislative fix in Georgia and the Carolinas will recall how it impacted mortgage lending in those states. When lenders can't force borrowers to repay the debt, investors don't give lenders money to lend.