Processing Your Payment

Please do not leave this page until complete. This can take a few moments.

January 14, 2008

Lawmakers tweak anti-predatory lending law

Though Maine's anti-predatory lending law only went into effect New Years day, Maine legislators already have rolled back part of the law because of concerns that Mainers are having a hard time obtaining credit.

Last week, Gov. John Baldacci signed a retroactive amendment to the law that exempts conventional loans from rules designed to prevent loan flipping, which is when brokers repeatedly refinance loans to generate broker fees without any benefit for the borrower, according to the Portland Press Herald. According to legislators, the anti-loan flipping rules would have made it difficult for lenders to sell mortgages on the secondary market, which allows lenders to continue making more loans, the paper said.

The regulations remain in place for subprime loans, the paper said.

Sign up for Enews

Mainebiz web partners

Most Recent

Most Recent

Comments

Order a PDF