STATE OF MAINE

DEPARTMENT oF P Ro FESSI o NA L

AND FINANCIAL REG U LATI ON

BUREAU oF CoNSUMER CREDIT PROTECTION

3 5 srATE HousE srATr o N

AU C U STA, MAIN E

04333-0035

Janet T. Malls

December 13,202I

Ana Esparza

William Corbett

Office of Community Economic Development

U.S. Department of the Treasury

Re: Maine's responses to questions from Treasury

Dear Ms. Esparza and Mr. Corbett:

Thank you for your most recent communication requesting clarification ofa few issues regarding

Maine's HAF Plan. Below please find the questions posed, and our responses:

Question I (a)

Clarifu how you will calculate the homeowner's payment to income ratio and what effect will

other monthly payment obligations have on this calculation?

Response l(a)

We have modified Maine's HAF Plan to define a sustainable monthly mortgage payment

(principal, interest, taxes, insurance and condo/HOA dues ifapplicable) as a PITIA payment that

is not geater than 3l%o of the borrower's GMI.

Question I (b)

Under what circumstances will housing counselors make this determination, and how will their

determination vary from the normal procedure?

Response 1(h)

We have removed the statement that housing counselors will help determine affordability.

Counselors will assist in calculating eligibility, but to ensure equal treatment for all

homeowners, counselors will not exercise discretion to make a determination about affordability

beyond an applicant's bright line eligibility criteria.

Question 1(c)

o

William N. Lund

OFFtcEs LocATED AT:

76 NORTHERN AVENUE, GARDINER, MAINE

TTY IISERS CALL MAINE RELAY ?I I

INTERNET: www.Credit.Mainp.Gov

F^x: {207 )582-7 699

We have also modified the Plan by removing the phrase "taking into consideration other monthly

payment obligations," in order to establish bright line criteria, ensuring equal treatment ofall

applicants.

PHoNE: (207) 624-8527 ( Vo ice)
Response 1(c)

Homeowners who wish to accept a loss mitigation offer facilitated by a maximum HAF

contribution whose modified monthly PITIA payment exceeds 3l% of the borrower's GMI, but

does not exceed 50% GMI, may be permitted to do so provided that the homeowner attests to

Maine's HAF Program an ongoing ability to pay the modified PITIA and willingness to work

with a Maine housing counselor if not already doing so. The counselor will work with the

homeowner to recommend household budget adjustments as well as explain non-home retention

options in lieu of accepting HAF funds.

Question 2(a)

In what languages will the state provide program informational material?

Response 2(a)

We will provide program informational materials in English, Spanish, French and Somali

Question 2(b)

Please expand upon the nature of the educational element to be incorporated into the existing

foreclosure prevention hotline.

Response 2(b\

Under Maine law, all servicers are required to notiry the Bureau of the name and address every

Maine homeowner to whom it has sent a'Notice of Right to Cure Default." The Bureau then

mails an informational letter to each such homeowner informing the homeowner about Maine's

foreclosure prevention program, including the telephone number of the Bureau's hotline. The

Bureau will also include information about Maine's HAF program in this mailing to

homeowners.

The informational letter encourages homeowners to call the hotline. Bureau staff members

conduct an extensive intake with the homeowner and then make a referral to a housing

counselor, or to legal services in situations requiring legal advice or representation. Hotline staff

members explain the foreclosure process, and various loss mitigation options and other

altematives to foreclosure.

Spanish is the predominant language in Maine for Limited English Proficiency (LEP)

homeowners and the Bureau will print the informational letter and information about HAF in

Ifyou determine that the bonower's payment exceeds 3l% ofgross income, what steps will you

take?

Maine's counselors are already trained under our Bureau's existing foreclosure assistance

program to explore all other options, including a short sale or other procedures that will allow the

consumer to stay in the home as long as possible in order to make altemate arrangements.

Because Maine is ajudicial foreclosure state, the civil process takes a year or more, if the

homeowner takes basic procedural steps, including requesting court-sponsored mediation.
Spanish on the reverse side of the current letter. A one-page insert will be added to the mailing

to encoumge all LEP homeowners to call the Bureau's hotline so that we can conduct the intake

with the assistance of a translation service. The Bureau will also make this state-approved

telephone translation service available at no cost to Maine housing counselors and legal service

providers.

Thank you for this opportunity to provide additional information.

Sincerely,

Will Lund, Superintendent

Mark Susi, Staff Attomey