Downeast Mortgage cuts back, may shut down

A South Portland Maine mortgage lender that had issued sub-prime loans may soon shut down. Of course state regulators may have helped in decisions soon to be made by Downeast Mortgage. The state Attorney General’s Office sued the firm last October, saying it “engaged in unfair and deceptive practices” to finance a home loan.

Downeast Mortgage has stopped originating loans and has closed all but one of its nine offices in Maine and New Hampshire, the Portland Press Herald reported. Apparently their bank wanted owners to personally take some of the risk, asking for personal guarantees, but the owners did not want to do so.