A bill that would give consumers tough new weapons against mortgage fraud is on its way to Gov. Tim Pawlenty.
Spokesman Brian McClung said Wednesday that Pawlenty is expected to sign it.
The bill, which the state House of Representatives approved Wednesday on a 129-3 vote, gives individuals and companies the right to sue if they have been victimized by dishonest or predatory lending practices, including inflated appraisals.
Perpetrators of mortgage fraud also could get sentenced to up to two years of jail time. If the victim is considered "vulnerable" because of age, physical condition or mental capacity, the bill would give the courts the ability to assign harsher penalties.
The same bill was approved by the Senate on April 30.
This is the second of two bills aimed at mortgage lending practices, and it has the backing of Attorney General Lori Swanson and consumer protection groups.
The first bill, which Pawlenty signed into law April 20, bans certain kinds of mortgages to high-risk borrowers, and forces brokers and lenders to make sure that borrowers have a "reasonable ability to pay."
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