An Act To Enhance Consumer Protections in Relation to Certain Mortgages LR 1736(02)
Maine Legislature, Session 121, LD 0494
Committee Amendment CA_A_H53 (House)

COMMITTEE AMENDMENT • ./1" to H. P • 
To 
Enhance 
Consumer 
Protections 
383, L.D. 494, Bill, "An 
in Relation to Certain 
Mortgages" 
Amend the bill in section 1 in paragraph F-1 in the 2nd line 
(page 1, line 7 in L.D.) by striking out the following: "mortgage 
.lQgn" 
Further amend the bill in section 1 in paragraph F-1 in the 
6th line 
(page 1, 
line 11 in L.D.) 
by inserting after the 
fOllowing: ".ill" the following: 'subject to' 
Further amend the bill in section 3 by striking out all of 
subsection ll-A (page 1, lines 33 
to 37 in L.D.) and inserting 
in its place the following: 
'11-A. 
A creditor who makes a high-rate, high-fee mortgage 
shall report both the favorable and unfavorable payment history 
of 
the 
consumer 
to 
a 
nationally 
recognized 
consumer 
credit 
reporting agency at least annually during the period the creditor 
holds or services the loan.' 
Further amend the bill by striking out all of section 4. 
Further amend the bill in section 5 in subsection 12-A by 
striking out all of paragraph A (page 2, lines 5 to 20 in L.D.) 
and inserting in its place the following: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "g.. to H.P. 383, L.D. 494 
'A. 
Charge 
any points in connection with 
a 
high-rate, 
high-fee mortgage if the proceeds of the high rate, high fee 
mortg~ge are 
used 
to 
refinance 
an 
existing high-rate, 
high-fee 
mortgage 
owned 
by 
the 
creditor 
and 
the 
last 
financing was within 18 months of the current refinancing: 
except, however, this paragraph does not prohibit a creditor 
from 
charging points 
in connection with 
any 
additional 
proceeds received by the consumer or paid to 3rd parties on 
the consumer's behalf in connection with the refinancing. 
For purposes of this subsection, "additional proceeds" for a 
closed-end loan is the amount over and above the outstanding 
principal 
balance 
of 
the 
existing 
high-rate, 
high-fee 
mortgage; or' 
Further amend the bill in section 5 in sUbsection 12-11. in 
paragraph B in the first line (page 2, line 22 in L.D.) by 
striking out the fol10w,~ng: "borrower" and inserting in its place 
the following: 'consumer' and in the 11th line (page 2, line 32 
in L.D.) by striking out the following: "lender" and inserting in 
its place the following: 'creditor' and in the 14th line (page 2, 
line 35 in L.D.) by striking out the following: "borrower" and 
inserting in its place the following: 'consumer' 
Further amend the bill in section 6 in subsection 13-11. in 
the 3rd line (page 2, line 49 in L.D.) by striking out the 
following: "borrower's" and inserting in its place the following: 
'consumer's' and in the 5th line (page 3, line 1 in L.D.) by 
striking out the following: "borrower's" and inserting in its 
place the following: 
'consumer's' and in the 6th line (page 3, 
line 2 in L.D.) by striking out the following: 
"borrower" and 
inserting in its place the following: 'consumer' 
Further amend the bill in section 6 in subsection 13-B in 
the 
2nd line (page 3, 
line 6 in L.D.) 
by striking out the 
following: "borrower" and inserting in its place the following: 
'consumer' 
Further amend the bill in section 6 by striking out all of 
subsection 13-C (page 3, lines 10 to 26 in L.D.) and inserting in 
its place the following: 
'13 C. 
Beginning January 1. 2004, a creditor that makes a 
high-rate, 
high-fee 
mortgage 
to 
a 
consumer 
and 
offers 
the 
consumer the option to purchase an indiyidua1 or group credit 
life, 
accident, 
health, 
disability or 
unemployment 
insurance 
product. on a prepaid single premium basis must also offer the 
consumer the option of purchasing that insurance product on a 
monthly premium basis. 
COMMITTEE 'AMENDMENT 
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COMMITTEE AMENDMENT "1/,, to H.P. 383, L.D. 494 
If a 
consumer purchases from a lender an individual or group 
credit 
life, 
accident. 
health, 
disability 
or 
unemployment 
insurance product. that consumer has the right to cancel the 
insurance product at any 
time 
and 
receive 
a 
refund of 
any 
unearned premiums paid. 
Notice of the right to cancel must be 
sent by mail to the consumer by the creditor no later than 30 
days after consummation. 
The notice must also disclose the type 
of insurance product purchased. the cost of the product and the 
procedure for canceling the product.' 
Further amend the bill in section 7 by striking out all of 
subsection 16-8 (page 3, lines 31 to 35 in L.D.) and inserting in 
its place the following: 
'16-A. 
A creditor that makes a high-rate, high-fee mortgage 
to 
a 
consumer 
and 
any 
assignee 
of that creditor have 
the 
obligation. 
jointly and severally. 
to 
refund or credit the 
consumer for any default charges, prepayment penalties or prepaid 
finance charges collected in excess of the limits set forth in 
this article.' 
Further amend the bill in section 7 in subsection 16-B in 
the 2nd line (page 3, line 38 in L.D.) by striking out the 
following: 
"lender" and inserting in its place the following: 
'creditor' 
Further amend the bill in section 7 in subsection 18 in the 
4th line (page 3, line 49 in L.D.) by striking out the following: 
"financial lending activities of" and inserting in its place the 
following: 'making of a high-rate. high-fee mortgage by' 
Further amend the bill in section 7 in subsection 18 in 
paragraph 8 in the 2nd line (page 4, line 2 in L.D.) by inserting 
after the following: "Regulation" the following: 'or the Bureau 
of Financial Institutions' 
Further amend the bill in section 7 in subsection 18 in the 
first blocked paragraph by striking out all of the last 4 lines 
(page 4, lines 27 to 30 in L.D.) and inserting in their place the 
following: 
'business with a political subdivision based upon the 
making of a high-rate. high-fee mortgage or imposing reporting 
reguirements or any other obligations upon persons regarding the 
making of a high-rate. high-fee mortgage. ' 
Further amend the bill by relettering 
nonconsecutive 
Part 
letter 
or 
section 
consecutively. 
or renumbering any 
number 
to 
read 
COMMITTEE AMENDMENT 
~4a." 
~ 
COMMITTEE AMENDMENT .. n 
. to H.P. 383, L.D. 494 
SUMMARY 
This amendment does the following. 
1. 
It makes technical changes in the bill to reflect the 
appropriate terms used in the Maine Consumer Credit Code. 
2. 
It 
clarifies 
the 
concurrent 
Department of Professional and Financial 
Financial 
Institutions 
with 
regard 
to 
mortgages 
sold by 
banks, 
credit unions 
institutions. 
jurisdiction 
of 
the 
Regulation, Bureau of 
high-rate, 
high-fee 
and other 
financial 
3. 
It extends the provision related to fees charged in 
association with refinancings to loans made within an 18-month 
period. 
4. 
It 
municipalities 
mortgages. 
limits 
the 
to 
actions 
provision 
related 
preempting 
actions 
by 
to 
high-rate, 
high-fee 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/11103 ,;;:tk?ae 
Office of Fiscal and Program Review 
LD494 
An Act To Enhance Consumer Protections in Relation to Certain 
Mortgages 
LR 1736(02) 
Fiscal Note for Bill as Amended by Committee Amendment 
Committee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue 
LR1736(2) - Fiscal Note - Page 1 of 1