Standard and Poor's will continue to rate structured finance transactions that include loans from Kentucky after the state's predatory lending legislation goes into effect June 24.In a recent report, S&P found that damages were capped for purchasers or assignees of non-high-cost loans. Further, although there is a potential for uncapped assignee liability on high-cost loans, this exists only for "violations apparent on the face of the disclosure and promissory note," S&P said. Because of this safe-harbor provision, the agency will continue to rate transactions containing high-cost loans as well.
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