On July 12, the CFPB and the State of Maine filed an amicus brief in the Maine Supreme Judicial Court arguing that determining whether a loan is covered by TILA requires an assessment of the borrower’s primary purpose in entering into the transaction. The action involves a couple who obtained a loan from the bank to purchase land for the construction of a home. Due to the 2008 financial crisis, the value of the property depreciated, resulting in insufficient proceeds from the sale of the home to fully pay off the loan. To cover the shortfall, the couple acquired a new loan from the bank and used a cabin they owned as collateral.
