Issue #15: Preventing “fee-padding”

Within the ask for Public Comment, OCCR identified the growth, or at least the perception of the development, that lenders had been increasing fees and points to an amount just underneath the limit that will qualify that loan as a far more heavily controlled 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 might be done about this.

Our conclusion is the fact that fee-padding is taking place in Maine, and also as one good way to deal with the practice we’re suggesting (see proposed bill connected as Appendix number 1, part 2) that the limit of “points and fees” that creates part 32 therapy, be lowered from 8% of that loan amount, to 5%. Weiterlesen