June 15, 2007  Speaker Glenn Cummings, sponsor of the bill, and Community CU's President/CEO Donna Steckino, who testified in support of the Speaker's bill. On Monday, June 11, Gov. John Baldacci signed into law the Maine Credit Union League-backed Homeowner Protection Act, aimed at curbing predatory lending practices that lead to increased foreclosures in Maine.
The measure, sponsored by Speaker of the House Glenn Cummings, had passed unanimously in both the House and Senate.
Maine credit unions and some other financial institutions were among the strongest proponents of the act, with the League serving as an early supporter as well as providing key testimony in support of the measure before the Legislature's Insurance & Financial Services Committee.
"We are proud to have played an active role in this legislation from start to finish and believe that Maine consumers will benefit from the measures included in this bill," said John Murphy, League President.
The act will:
*Restrict the amount of fees consumers could be charged;
*Prevent lenders from offering subprime loans that a consumer can't afford to repay;
*Ban predatory lending practices such as loan flipping, where lenders push unnecessary refinances so they can charge huge upfront fees; and
*Protect consumer rights in court and make predatory lenders more legally accountable.
According to Cummings, "We could not have passed such a powerful consumer protection bill if it had not been for...the tremendous support of Maine's responsible lenders, credit unions and other financial institutions who made a strong stand on behalf of their consumers."
The broad support for the bill signals how serious a concern predatory lending has become, he said.
The Center for Responsible Lending, which provides resources on predatory lending, noted that, "Maine has shown national leadership in fighting predatory lending by passing one of the strongest anti-predatory lending laws in the country."
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