Finance

Maine's 'usury' laws historically applied to loans made by private lenders. Today, most residential mortgages are governed by:

AOnly Maine state usury laws
BFederal laws that preempt state usury limits for federally regulated lenders✓ Correct
CIndividual county regulations
DMREC rate guidelines

Explanation

Federal laws (Garn-St. Germain, Depository Institutions Deregulation Act) preempt state usury limitations for federally chartered and insured lenders making first mortgage loans, making federal law the primary governing authority.

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