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Calling on the Pennsylvania General Assembly to enact the legislation proposed by the Pennsylvania Department of Banking with its Mortgage Foreclosure Advisory Committee for the protection of the citizens of Philadelphia from predatory home loans that strip away hard-earned home equity, trap borrowers in excessive interest rates and frequently cause families to lose their homes.
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WHEREAS, In light of the admitted violations of banking standards and the legal problems of New Century Mortgage Corporation and Home 123 Corporation, which are both subsidiaries of New Century Financial Corporation, which is also currently the subject of significant media attention and under investigation by the U.S. Securities and Exchange Commission; and
WHEREAS, A significant number of citizens of Philadelphia have obtained mortgages from New Century Financial Corporation, this latest trouble in the sub- prime mortgage industry could risk these citizens's loss of their homes; and
WHEREAS, The City of Philadelphia is experiencing an increasing number of home foreclosures- ranging in recent years to 700-1000 a month. These foreclosures and in addition to being devastating to families also effect property values and burden already burdened social services; and
WHEREAS, In the past decade the mortgage loan business has significantly increased in complexity and competitiveness which resulted in borrowers' inability to understand the loan products offered to them or the process of obtaining a loan. Those misunderstandings all too often result in these borrowers making poor financial decisions that may result in loss of there homes; and
WHEREAS, The Pennsylvania Department of Banking with its Mortgage Foreclosure Advisory Committee, which includes community leaders and banking industry representatives, have developed a package of bills and regulations which would define the improper conduct of those in the mortgage loan business and protect the consumers of these t...
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