Court Blocks Law That Spooked MD Lenders

A Maryland circuit court on Tuesday morning halted -- for now -- the enforcement of an ordinance on discriminatory lending that had caused 50 lenders to pull out of Montgomery County.Thomas Shaner, executive director of the Maryland Association of Mortgage Brokers, told MortgageWire that a full hearing on the ordinance is now set for July 6. "It's enjoined," he said. Passed by the Montgomery County Council, the law carries a minimum penalty of $500,000 per violation for discriminatory lending practices. The bill, set to go into effect March 8, has stirred controversy because it penalizes lenders for charging "excessive" fees without defining what excessive means. Mr. Shaner said his "assumption" is that the 50 lenders who promised to curtail lending in Montgomery will continue to lend there. The American Financial Services Association and seven county brokers sued to enjoin the law. A spokesman for county executive Douglas Duncan, who is running for governor, said the law "is fair and reasonable," adding that the county will "vigorously defend" it.