Governor signs legislation helping Sovereign Bank

Gov. Ed Rendell on Friday signed legislation that will effectively shield executives and directors of sovereign Bank from a shareholder challenge, saying the measure will help keep a significant financial institution in Pennsylvania.

However, Rendell expressed concern over the much-criticized and swiftly approved legislation, saying it was so unnecessarily broad that thousands of corporations may have to hire lawyers to review, and perhaps change, their articles of incorporation.

Still, Rendell called Sovereign an "exemplary Pennsylvania institution" that was one of three banks that participated in the state's economic stimulus program by providing $250 million in low-interest loans to Pennsylvania businesses.

"These actions reflect a bank that is interested in the long-term economic health of the state, and not simply realizing short-term profits," Rendell wrote in a statement Friday evening.

The law becomes effective immediately. However, Rendell also asked the House and the Senate to revise the new law to apply only to bank holding companies.

Rendell's statement did not acknowledge other criticisms of the new law. The bill's swift passage angered several large Sovereign shareholders, who said the measure stripped them of their rights.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.