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Pa. passes tougher laws to prevent mortgage fraud

HARRISBURG — Pennsylvania has two new laws to combat mortgage fraud.

Gov. Ed Rendell signed the two bills into law Monday as he was watched by victims of former mortgage broker Wesley Snyder, who was sentenced to 12 years in prison.

Prosecutors say Snyder swindled nearly 800 homeowners and 29 investors in eastern Pennsylvania out of more than $29 million in a Ponzi scheme.

One bill Rendell signed will help consumers get more information from the bank about their loan terms and payments by preventing the mortgage broker or originator from being the exclusive recipient of that information.

A second bill signed by Rendell prevents a mortgage company owner from firing or punishing employees who alert authorities to illegal activity.

The provisions take effect in 60 days.

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