Washington Post (03/06/08) P. B1; Rein, Lisa
Lawmakers in Maryland are considering legislation that would allow state-chartered banks to impose mortgage pre-payment penalties. The bill is a response to a December ruling from the Maryland Court of Appeals in the case of a Baltimore homeowner who filed suit against Provident Bank regarding a $681 fee levied when he refinanced a home equity loan. The court deemed the fee illegal under state law. Experts anticipate the bill will be okayed by the House, but they believe passage by the Senate will be complicated by a provision that prevents homeowners from seeking damages. The bill has received the support of both the banking industry and Maryland Gov. Martin O'Malley (D), who insists borrowers will face higher upfront fees or interest rates if it is not passed.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment