Judiciary committee backs resolve shielding homeowners from retroactive application of Finch foreclosure ruling (10-0)

The Joint Standing Committee on the Judiciary approved an amended resolve (LD 1444) clarifying that the Maine Law Court decision in Finch v. US Bank NA should not be applied retroactively to reopen foreclosure judgments decided between Pouchard and Finch. Representative David Sinclair moved the amended resolve and the committee voted 10-0 in favor, with four members absent.

Josh Zimmerman of the Maine Bankers Association testified that his members opposed the resolve, saying legislative interference in judicial processes would create unpredictability and that courts are the appropriate venue for technical application questions. Jared Kaye of the Maine Credit Union League said his membership was neutral on the amendment and saw it as a practical path forward. A representative from Maine Equal Justice said the organization supported the resolve.

Eli Murphy, the committee's analyst, explained the amendment would convert the bill into a resolve clarifying that Finch should not be applied retroactively to judgments entered after the Pouchard decision and before Finch. The change, proponents said, is intended to preserve finality for homeowners who relied on the law as it stood when their cases were decided.

Representative Sinclair said the resolve was a compromise that provides stability after what he described as inconsistent Law Court rulings. The committee approved the motion to pass as amended; the clerk recorded 10 yes votes, 0 no votes and four absences. Members noted absent colleagues would have until noon Tuesday to register their votes.