Within the ask for Public Comment, OCCR identified the development, or at the least the perception of a development, that loan providers had been increasing costs and points to an even just underneath the limit that could qualify that loan as a far more heavily managed high-rate, high-fee “Section 32” loan. We asked commenters to inform us whether this perception ended up being a real possibility, if what exactly could possibly be done about any of it.

Our conclusion is fee-padding is happening in Maine, so that as one good way to deal with the training our company is suggesting (see proposed bill attached as Appendix #1, Section 2) that the limit of “points and fees” that creates area 32 therapy, be lowered from 8% of that loan quantity, to 5%. Continue reading Issue #15: Preventing “fee-padding”