Homeowner Protection Act - LD 1869

Homeowner Protection Act makes Maine a leader  in fight to stop predatory lending

Sponsored by Speaker Cummings, the Homeowner Protection Act was signed into law by Governor Baldacci after winning unanimous support from both the House and Senate as well as from the Legislature’s financial committee, which was led by co-sponsors Senator Nancy Sullivan and Rep. John Brautigam.

The measure will make Maine a national leader in the fight to protect homeowners and stop predatory lending practices that have led to climbing home foreclosures in Maine and across the country.

“The subprime lending crisis has revealed a large crack in the foundation of our communities,” said Speaker Cummings. “Too many Maine homeowners have found themselves at risk of predatory lenders who have turned the American dream into a nightmare. Too many families have lost their homes, their roots in the community, and their life’s savings - all with nothing more than the stroke of a pen. With the signing of this new law we are putting Maine consumers and businesses on a more equal playing field.”

The Maine Homeowner Protection Act will restrict the amount of fees consumers could be charged and prevent lenders from offering subprime loans that a consumer cannot afford to repay. Other provisions in the new law ban predatory lending practices such as loan flipping, where lenders push unnecessary refinances in order to charge huge upfront fees. The measure also aims to protect consumer rights in court and make predatory lenders more legally accountable.

The new law will also create new compliance and enforcement provisions to help respond to consumer complaints and to weed out predatory lenders, and create tougher penalties for predatory lenders.

Resources:

Updated bill summary

Tips to protect yourself

Facts about predatory lending

Valuable Consumer resources

Link to: Maine State Housing Authority

Link to: Office of Consumer Credit Regulation, for a list of housing counselors and tips sheet

CEI: Information on how predatory lending affects Mainers

The Homeowner Protection Act has received support from over 35 Maine organizations and has been co-sponsored by over 100 legislators: Read the List of Supporters

The Homeowner Protection Act has gotten a lot of attention recently: Read More