Gov. Lynch Signs Law Increasing Home Mortgage Consumer Protection

CONCORD, NH – July 30, 2009 – (RealEstateRama) — Gov. John Lynch today signed a consumer protection law (HB 610) that builds on the state’s ongoing efforts to better protect homeowners during the national mortgage crisis by ensuring mortgage originators are qualified, and have the proper education and training.

“For the most part, New Hampshire’s lenders and lending institutions have a reputation for acting in a responsible manner and providing a valuable service. But abuses and unscrupulous lending practices have resulted in many New Hampshire families seeing their dream of home ownership jeopardized,” Gov. Lynch said. “Over the past few years we have taken steps to better protect consumers and homeowners during the national mortgage crisis, and today, we are taking another step in forward in protecting the dream of home ownership.”

The new law incorporates the provisions of the federal Secure and Fair Enforcement for Mortgage Licensing Act, or SAFE Act, which Congress passed as a response to the recession and mortgage crisis in this country.

The SAFE Act builds on the New Hampshire law Gov. Lynch signed last year requiring all mortgage originators in the state be licensed. The federal provisions require greater education, testing and criminal background checks.

“By incorporating these new provisions into state law, we are bringing greater uniformity and transparency in the lending industry,” Gov. Lynch said.

Gov. Lynch and the state Banking Department have worked with the lending industry over the past several years to pass as the mortgage crisis has grown.

Gov. Lynch signed a consumer protection law aimed at protecting homeowners from losing their homes – and the valuable equity they have built into their homes – to foreclosure scams. The state collaborated with lenders to develop a Web site, www.HomeHelpNH.org, a one-stop resource that is part of New Hampshire’s continuing efforts to protect and inform the consumer.

“The regulations we have in place in New Hampshire and the sound practices of our financial institutions have allowed us to avoid a widespread crisis, as some other states have experienced,” Gov. Lynch said. “And though there are signs we may be working our way out of this recession, the number of foreclosures in New Hampshire remains high. That is why we must continue to work together to help struggling New Hampshire families and help ensure the viability the industry.”

House Bill 610 was sponsored by former representative and now Employment Security Commissioner Tara Reardon.

Contact:
Communications Director
Office of the Governor
603-271-2121

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