PRESS RELEASE
For Immediate Release – July 18, 2008
Contact: Steven Shivak, Pittsburgh Community Reinvestment Group
(412) 953-9314 / sshivak@pcrg.org
GOVERNOR SIGNS MORTGAGE REFORM BILLS
PCRG Executive Director Steven Shivak sits with Governor Rendell at the public signing for the mortgage reform bills in Reading, PA
PITTSBURGH – The Pittsburgh Community Reinvestment Group (PCRG), a coalition of over 20 neighborhood groups representing 130,000 individuals in the City of Pittsburgh and Allegheny County announces Governor Rendell’s signing of the Mortgage Reform Bills.
Recognizing the growing foreclosure problem, former Secretary of Banking, Bill Schenck, established a committee to craft a series of bills protecting consumers from unscrupulous lenders. “Mortgage brokers targeted Pennsylvanians who had lower incomes and blemished credit and sold them higher-priced adjustable rate mortgages “(ARM’s) stated Schenck. “These loan products were not in the best interest of the consumer, and in many cases, the consumer was set up for failure. When looking for consumer advocates to be part of my committee and craft legislation, PCRG made perfect sense.”
According to Bill Co-sponsor and champion Senator Jim Ferlo (D-38th Senatorial District) “out of town lenders were selling consumers ARMs with low teaser rates changing into higher rates consumers could not afford.” Moreover, in Pennsylvania “you have to have a license to sell insurance, drive a cab or even cut a person’s hair. But when it comes to selling a consumer a mortgage there were no licensing requirements”
PCRG executive director Steven Shivak praised the leadership of Senator Ferlo, Secretary Schenck and PCRG’s Anti-Predatory Lending Initiative (APLI) which is made up of members, lenders, counseling and legal agencies and elected officials for its efforts to work with the Department of Banking and advocate for the bills’ ultimate passage. “Numerous individuals, organizations and elected officials advocated for and were involved in this bill’s ultimate success but without Secretary Schenck, Senator Ferlo and members of the APLI this bill never would have gotten to the Governor.”
Pittsburgh Community Reinvestment Group (PCRG) is a consortium of community leaders working for economic justice, equitable investment practices, and sufficient financial resources to revitalize communities throughout Allegheny County. For more information, visit www.pcrg.org.
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