| Page 2 of 2 < |
Bill Would Insulate Mortgage Lenders
Baltimore Orioles owner Peter G. Angelos's law firm is fighting Maryland banks over prepayment fines.
(Joel Richardson/twp - Twp)
TOOLBOX
   Resize
COMMENT
 Discussion Policy
 CLOSE
Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.
Who's Blogging  |
In the competition for an increasing array of financial services, state banks say they can't contend with federal banks, which by law can charge the fees that the Maryland court ruled illegal. The state banks say they have relied for years on an opinion from Maryland regulators that the fees were legal. They say it is not an option for them to absorb the closing costs, which cover the fees for appraisal, title searches and recordation.
"It's big, big, big money that could cripple Maryland banks," said Sen. Thomas M. Middleton (D-Charles), chairman of the Finance Committee and a lead sponsor of the bill. "If customers were blatantly harmed [by early-payment fees], I'd be hearing from them."
Del. Dereck E. Davis (D-Prince George's), chairman of the House Economic Matters Committee and a lead bill sponsor, called the opposition "little more than an attempt at unjust enrichment" by Angelos and his firm.
Critics say the legislature has no business interfering with pending litigation.
"This is the Provident relief bill," Albert Figinski, who works for Angelos's firm, told Senate lawmakers. "Let us litigate it out. Let a jury decide." Figinski accused the banks of seeking the imprimatur of state regulators "behind closed doors."
The bill is likely to get final approval in the House today but faces a rough reception in the Senate, where some members are furious at the provision that would insulate banks from damages.
"It may sound corny, but I'm down here representing the consumer," Sen. George W. Della Jr. (D-Baltimore) said. "I'm not down here representing the banks."
O'Malley, in a letter to lawmakers, said the bill was "extremely important in order to allow Maryland consumers to obtain mortgage loans with reasonable terms, at the lowest possible cost."
Staff researcher Meg Smith contributed to this report.
