“Focus Banking & Finance” piece that looks at how new federal mortgage standards introduced by the 2010 Dodd-Frank Act are laying increased responsibilities and costs on Maine’s 32 state-chartered banks and credit unions. While the reforms were intended to address the risky lending practices that led to the 2008 Wall Street collapse, community banks, which had not been part of the problem to begin with, are paying the price for these new regulations. Many in the community banking industry have expressed concern that the new guidelines will not allow banks to make loans available to local low- and moderate-income communities and that otherwise creditworthy individuals, such as those with significant student debt, will be excluded under arbitrary debt-to-income limits. With a sidebar that outlines some of the new rules on residential mortgages.
Banks and banking, Mortgages, Banking law & legislation
McCarthy, James, "Squeezed" (2013). Maine News Index – MaineBiz. 5922.