Fitch Ratings has announced that it will continue to rate loan pools containing loans subject to new predatory lending legislation in Maine.The law, which went into effect Sept. 13, amends a 1995 statute, especially in regard to what it defines as "high-rate, high-fee" mortgages. That description now dovetails with what the Home Ownership and Equity Protection Act defines as a high-cost home loan. Fitch requires that any high-rate, high-fee loan to be included in a structured finance transaction must be identified as such. Lenders must be able to buy back unidentified high-rate, high-fee mortgages, the rating agency said.
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