S&P to Rate Deals With Maine Loans

Standard & Poor's Ratings Services has announced that it will rate structured finance transactions that include Maine loans governed by the state's recently amended predatory lending law.The amended statute defines what constitutes a high-cost home loan, so lenders who wish to avoid making them should be able to do so, S&P said. Violations of the law could result in liability for the originators, purchasers, or assignees of high-cost loans. "Although the liability of purchasers and assignees for a loan that violates the amended law may exceed the unpaid principal of the loan, this liability is capped," S&P said. For deals that do not include high-cost loans, S&P will require the issuer to provide a representation and warranty to that effect. For other deals, the issuer must warrant that the high-cost loans comply with the law and that its compliance procedures can effectively identify high-cost loans and determine that they don't violate the law, the rating agency said. S&P can be found online at http://www.standardandpoors.com.