PORTLAND, Maine (5/20/13)--Six of seven foreclosure bills introduced in Maine's Legislature failed to make it out of the state's Judiciary Committee last week. The seventh, which is supported by the Maine Credit Union League, will be the basis for a study group, which will include the league as a participant.
The state Judiciary Committee on May 13 voted "ought not to pass" on six of the foreclosure bills and voted to carry over the seventh, L.D. 1389, a measure that would expedite the foreclosure process, said the league (Weekly Update May 17).
The league had opposed four of the six measures voted down in committee. The other two measures voted down included L.D. 125, which would have preserved lender equity during foreclosures and included an amendment drafted by the league, and L.D. 392, which dealt with the original mortgage note.
The Attorney General is expected to convene a study group, which would use L.D. 1389 as a basis to study and suggest changes to the foreclosure and mediation process. The league testified recently in support of L.D. 1389 at a public hearing and said it will participate in the group, which expects to meet over the summer and fall.
"Many of the components of L.D. 125 are expected to be brought forward as part of the study group's discussions, and, ultimately, the defeat of the original mortgage note bill does not negatively impact credit unions in any way," the league said.
"We supported this bill with an amendment we drafted last session, and it overwhelmingly passed the House and Senate before being vetoed by the governor, so we saw no valid reason not to support it again this year," said league President John Murphy.
"Our main focus is on making meaningful changes that will curb abuse in the foreclosure process which is what our credit unions have asked us to do," Murphy said. "We will continue to work for changes that balance the interests of the lenders and consumers, and look forward to being involved in these ongoing discussions."