Michigan Bank Founds University Islamic Financial Corp.

From the Detroit Free Press, this story on Ann Arbor based University Bank that is founding a lending institution that will cater to those of the Muslim faith and Shariah law.

Among the laws of Shariah is a ban against paying or receiving interest.

The bank’s Islamic deposit accounts allow Muslims to open accounts where any profits are shared rather than paid as interest.
University Bank also offers a mortgage alternative loan transaction program — or MALT — which replaces a traditional home loan with a redeemable lease.

The bank holds the home in trust, and a home buyer makes monthly payments to that trust. Each rent payment includes a set amount of savings, which builds the buyer’s equity in the home. When the savings account equals the home’s original purchase price, the buyer owns it.

I don't have an opinion about this one way or another, really. I just wonder if a good old fashioned Jew (or Mennonite) might be able to get one of these loans.