An Act To Protect Maine Homeowners from Predatory Lending
Maine Legislature, Session 123, LD 1869
Committee Amendment CA_A_H354 (House)
Amends: 9-A MRSA §8, 9-A MRSA §10, 2 MRSA §6, 9-A MRSA §6, 9-A MRSA §2, 10 MRSA §1

COMMITTEE AMENDMENT "A" to H.P. 1301, L.D. 1869, Bill, "An Act To 
Protect Maine Homeowners from Predatory Lending" 
Amend the bill by inserting after the enacting clause and before section 1 the 
following: 
'PART A' 
Amend the bill in section 2 in §6-105-A in subsection 1 in the first line (page 1, line 
in L.D.) by inserting after the following: "rules" the following: " consistent with the 
principles for operation and implementation established by the system,' 
Amend the bill in section 2 in §6-105-A by inserting after subsection 2 the following: 
'Any information provided by or to the administrator pursuant to this section that has 
been designated as confidential by another state's regulatory agency remains the property 
of the agency furnishing the information and must be kept confidential by the 
administrator and the system except as authorized by the agency that furnished the 
information. ' 
Amend the bill in section 4 in subsection I-A by inserting after paragraph F the 
following: 
'G. "Bureau of Consumer Credit Protection" has the same meaning as set out in 
section 6-103.' 
Amend the bill in section 4 in subsection I-A in paragraph V in subparagraph (2) in 
the last line (page 4, line 33 in L.D.) by striking out the following: "3500.2; and" and 
inserting the following: '3500.2;' 
Amend the bill in section 4 in subsection I-A in paragraph V in subparagraph (3) in 
the last line (page 4, line 35 in L.D.) by striking out the following: "purposes." and 
inserting the following: 'purposes; and' 
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Amend the bill in section 4 in subsection I-A in paragraph V by inserting after 
subparagraph (3) the following: 
'( 4) The loan is not a construction loan.' 
Amend the bill in section 4 in subsection I-A by inserting after paragraph Z the 
following: 
'AA. "Subprime mortgage loan" means either a nontraditional mortgage as defined 
in paragraph S or a rate spread home loan as defined in paragraph U. 
BB. "Superintendent of Consumer Credit Protection" has the same meaning as set 
out in section 6-103.' 
Amend the bill in section 4 in subsection I-A by relettering the paragraphs to read 
consecutively. 
Amend the bill in section 19 in §8-206-C in subsection 1 in the 3rd line (page 7, line 
in L.D.) by striking out the following: "30" and inserting the following: '30-A' 
Amend the bill in section 19 in §8-206-C in subsection 1 in paragraph G in the 4th 
and 5th lines (page 7, lines 39 and 40 in L.D.) by striking out the following: "regulatory 
agency that has jurisdiction over the creditor" and inserting the following: 'Bureau of 
Consumer Credit Protection' 
Amend the bill in section 20 in §8-206-D in subsection 1 in paragraph B in the last 
line (page 9, line 31 in L.D.) by inserting after the following: "loan." the following: 'The 
administrator shall adopt rules defining with reasonable specificity the requirements for 
compliance with this paragraph. Rules adopted pursuant to this paragraph are routine 
technical rules pursuant to Title 5, chapter 375, subchapter 2-A.' 
Amend the bill in section 20 in §8-206-D in subsection 1 by striking out all of 
paragraph G (page 10, lines 15 to 43 and page 11, lines 1 to 4 in L.D.) and inserting the 
following: 
'G. 
A subprime mortgage loan may not be extended to a borrower unless a 
reasonable creditor would believe at the time the loan is closed that the borrower will 
be able to make the scheduled payments associated with the loan. 
(1) The determination of a borrower's reasonable ability to repay a subprime 
mortgage loan must include, but may not be limited to, consideration of the 
borrower's income, including statements submitted by or on behalf of the 
borrower in the loan application, except that a creditor may not disregard facts 
and circumstances that indicate that the income statements submitted by or on 
behalf of the borrower are inaccurate or incomplete, credit history, current 
obligations and employment status; the debt-to-income ratio of the borrower's 
monthly gross income, including the costs of property taxes and insurance; and 
other available financial resources other than the borrower's equity in the 
principal dwelling that secures or would secure the subprime mortgage loan. 
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COMMITTEE AMENDMENT .. A" to H.P. 1301, L.D. 1869 
(2) The calculation assumptions used in evaluating the ability to repay for 
subprime mortgage loans must include: 
(a) The monthly payment amounts based on, at a minimum, the fully indexed 
rate, assuming a fully amortizing repayment schedule; 
(b) Verification of all sources of income by tax returns, payroll receipts, bank 
records, reasonable alternative or reasonable 3rd-party verification; and 
(c) For products that permit negative amortization, the repayment analysis 
based upon the initial loan amount plus any balance increase that may accrue 
from the negative amortization provision. 
(3) The administrator shall adopt, amend and repeal routine technical rules in 
accordance with Title 5, chapter 375, subchapter 2-A defining with reasonable 
specificity the requirements set forth in subparagraphs (I) and (2). In adopting 
rules under this subparagraph, the administrator shall give due consideration and 
weight to the following federal regulations and guidelines, as amended from time 
to time: 
Ca) Final Interagency Guidance on Nontraditional Mortgage Product Risks; 
(b) Credit Risk Management Guidance for Home Equity Lending; 
(c) Expanded Guidance for Subprime Lending Programs; and 
(d) Interagency Guidance on Subprime Lending.' 
Amend the bill in section 20 in §8-206-D in subsection 2 in paragraph A in the 3rd 
line (page II, line 9 in L.D.) by inserting after the following: "action." the following: 'The 
borrower shall pay any reasonable costs incurred by the creditor or servicer before the 
cure of default.' 
Amend the bill in section 20 in §8-206-D in subsection 2 by striking out all of 
paragraph B (page 11, lines 13 to 14 in L.D.) and inserting the following: 
'8. A borrower has the right to cure a default once in a 12-month period.' 
Amend the bill in section 21 in §8-206-E in subsection I in the last line (page 11, line 
in L.D.) by inserting after the following: "loan." the following: 'This section does not 
apply to a purchaser or assignee of a residential mortgage loan except as permitted in 
section 8-206-C, subsection 2.' 
Amend the bill in section 21 in §8-206-E in subsection 2 in paragraph C in the first 
line (page 12, line 7 in L.D.) by inserting after the following: "damages" the following: 
'for violations of section 8-206-C or section 8-206-D, subsection 1, paragraph B' 
Amend the bill in section 21 in §8-206-E by striking out all of subsection 6 (page 12, 
lines 24 to 30 in L.D.) and inserting the following: 
'6. Any person who knowingly violates section 8-206-A or 8-206-C is guilty of a 
Class E crime.' 
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Amend the bill by striking out all of section 22 and inserting the following: 
'Sec. 22. 9-A MRSA §8-206-F is enacted to read: 
§8-206-F. Investigative and legal compliance personnel 
1. The Superintendent of Consumer Credit Protection shall establish the following 
positions: 
A. 
A position with the responsibility for promoting compliance with, and 
investigating alleged violations of, the provisions of this section by entities or 
individuals subject to the jurisdiction of the Bureau of Consumer Credit Protection; 
and 
B. 
A staff attorney position with the responsibility for compliance with, and 
enforcement of the provisions of, this section by entities or individuals subject to the 
jurisdiction of the Bureau of Consumer Credit Protection. 
2. Notwithstanding section 6-203, subsection 3-C, the Superintendent of Consumer 
Credit Protection may by rule adjust the fees paid with respect to creditors that are not 
supervised financial organizations making residential mortgage loans to support the costs 
of the positions established in subsection I. Rules adopted pursuant to this subsection are 
major substantive rules as defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 23. 9-A MRSA §8-206-G is enacted to read: 
§8-206-G. Annual report to Legislature 
The Superintendent of Consumer Credit Protection shall report to the Legislature by 
January 15th of each year regarding the status of mortgage lending in this State and any 
unfair, deceptive or abusive mortgage lending practices that affect consumers. The report 
must include, but is not limited to, information on consumer complaints relating to 
mortgage lending, any enforcement actions, the number of foreclosures in the State, and 
support for financial literacy and consumer education and counseling. In preparing the 
report, the superintendent shall consult with the Bureau of Financial Institutions and the 
Attorney Genera\.' 
Amend the bill by inserting after section 28 the following: 
'Sec. 29. 9-A MRSA §10-303-A is enacted to read: 
§10-303-A. Good faith and fair dealing 
1. A loan broker shall, in addition to duties imposed by other statutes or at common 
law: 
A. Act in good faith and with fair dealing in any transaction, practice or course of 
business in connection with the brokering or making of any mortgage loan; 
B. Safeguard and account for any money handled for the. borrower; 
C. Follow reasonable and lawful instructions from the borrower; 
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COMMITTEE AMENDMENT .. A" to H.P. 1301, L.D. 1869 
D. Use reasonable skill, care and diligence; 
E. 
Timely and clearly disclose to the borrower material information that might 
reasonably affect the borrower's rights, interests or ability to receive,the borrower's 
intended benefit from the residential mortgage loan, including the total compensation 
the broker would receive from any of the loan options the broker presents to the 
borrower; and 
F. Make reasonable efforts to secure a loan that is reasonably advantageous to the 
borrower considering all the circumstances, including the rates, charges and 
repayment terms of the loan. 
2. The duties and standards of care created in this section may not be waived or 
modified.' 
Amend the bill in section 33 in the first and 2nd lines (page 16, lines 14 and 15 in 
L.D.) by striking out the following: "Director of the Office of Consumer Credit 
Regulation" and inserting the following: 'Superintendent of Consumer Credit Protection' 
Amend the bill by striking out all of section 35 and inserting the following: 
'Sec. 35. Application. That section of this Part that amends the Maine Revised 
Statutes, Title 9-A, section 8-206-A and those sections of this Part that enact Title 9-A, 
section 8-103, subsection I-A and Title 9-A, sections 8-206-C, 8-206-D and 8-206-E 
apply to all residential mortgage loans and high-rate, high-fee mortgages originated or 
entered into on or after the effective date of this Part. ' 
Amend the bill in section 36 in the last line (page 16, line 35 in L.D.) by striking out 
the following: "Act." and inserting the following: 'Part.' 
Amend the bill in section 37 in subsection I in the next to the last line (page 17, line 
in L.D.) by striking out the following: "Act" and inserting the following: 'Part' 
Amend the bill in section 37 in subsection 2 in the first line (page 17, line 5 in L.D.) 
by striking out the following: "Act" and inserting the following: 'Part' 
Amend the bill by striking out all of section 38 and inserting the following: 
'Sec. 38. Rulemaking. The Superintendent of Consumer Credit Protection and the 
Superintendent of Financial Institutions shall adopt rules as authorized by the Maine 
Revised Statutes, Title 9-A, section 8-206-D, subsection 1, paragraph B before January 1, 
2008. 
Sec. 39. Effective date. That section of this Part that enacts the Maine Revised 
Statutes, Title 9-A, section 8-206-F takes effect 90 days after adjournment of the 123rd 
Legislature. The remainder of this Part takes effect January 1, 2008. 
PARTB 
Sec. B-1. 2 MRSA §6, sub-§2, as repealed and replaced by PL 2005, c. 683, Pt. 
A, § 1, is amended to read: 
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COMMITTEE AMENDMENT" A" to H.P. 1301, L.D. 1869 
2. Range 90. The salaries of the following state officials and employees are within 
salary range 90: 
Superintendent of Financial Institutions; 
Superintendent of Consumer Credit Protection; 
State Tax Assessor; 
Superintendent of Insurance; 
Executive Director of the Maine Consumer Choice Health Plan; 
Deputy Commissioner, Department of Administrative and Financial Services; 
Associate Commissioner for Adult Services, Department of Corrections; 
Associate Commissioner for Juvenile Services, Department of Corrections; 
Public Advocate; 
Deputy Commissioner of Integrated Services, Department of Health and Human 
Services; 
Deputy Commissioner of Health, Integrated Access and Strategy, Department of 
Health and Human Services; 
Chief Information Officer; 
Associate Commissioner for Legislative and Program Services, Department of 
Corrections; and 
Chief of the State Police. 
Sec. B-2 .. 2 MRSA §6, sub-§4, as amended by PL 2005, c. 405, Pt. D, §3, is 
further amended to read: 
4. Range 88. The salaries of the following state officials and employees are within 
salary range 88: 
Director, Bureau of Employee Relations; 
Director, Bureau of Air Quality; 
Director, Bureau of Land and Water Quality; 
Director, Bureau of Remediation and Waste Management; 
Deputy Commissioner, Environmental Protection; 
Direetor, Offiee of Consumer Credit R-egHlatiOl'\; 
Director, Office of Licensing and Registration; 
Administrator, Office of Securities; and 
DeputY Chief of the State Police. 
Sec. B-3. 9-A MRSA §6-103, as amended by PL 1995, c. 502, Pt. H, §2, is 
repealed and the following enacted in its place: 
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COMMITTEE AMENDMENT" A" to H.P. 1301, L.D. 1869 
§6-103. Administration 
There is created and established the Bureau of Consumer Credit Protection within the 
Department of Professional and Financial Regulation. The Superintendent of Consumer 
Credit Protection is the head of the Bureau of Consumer Credit Protection. As used in 
this Act, and except as provided in section 1-301, subsection 2, "administrator" means the 
Superintendent of Consumer Credit Protection. The administrator is appointed by the 
Governor and subject to review by the joint standing committee of the Legislature having 
jurisdiction over insurance and financial services matters and to confirmation by the 
Legislature. The administrator is appointed for a 5-year term, or until a successor is 
appointed and qualified. Any vacancy occurring must be filled by appointment for the 
unexpired portion of the term. The administrator may be removed from office for cause 
by the Governor and Title 5, section 931, subsection 2 does not apply. 
Sec. B-4. Transition provisions. The following provisions govern the transition 
of the Office of Consumer Credit Regulation to the Bureau of Consumer Credit 
Protection. 
1. The Bureau of Consumer Credit Protection is the successor in every way to the 
powers, duties and functions of the former Office of Consumer Credit Regulation. 
2. The current Director of the Office of Consumer Credit Regulation becomes the 
acting Superintendent of Consumer Credit Protection and shall serve in that capacity until 
a successor is appointed and qualified in accordance with the Maine Revised Statutes, 
Title 9-A, section 6-103. 
3. All existing rules, regulations and procedures in effect, in operation or adopted in 
or by the Office of Consumer Credit Regulation or any of its administrative units or 
officers are hereby declared in effect and continue in effect until rescinded, revised or 
amended by the proper authority. 
4. All existing contracts, agreements and compacts currently in effect in the Office of 
Consumer Credit Regulation continue in effect. 
5. Any positions authorized and allocated subject to the personnel laws to the former 
Office of Consumer Credit Regulation are transferred to the Bureau of Consumer Credit 
Protection and may continue to be authorized. 
6. All records, property and equipment previously belonging to or allocated for the 
use of the former Office of Consumer Credit Regulation become, on the effective date of 
this Part, part of the property of the Bureau of Consumer Credit Protection. 
7. All existing forms, licenses, letterheads and similar items bearing the name of or 
referring to the Office of Consumer Credit Regulation may be used by the Bureau of 
Consumer Credit Protection. 
Sec. B-S. Maine Revised Statutes amended; revision clause. 
Wherever in 
the Maine Revised Statutes the words "Office of Consumer Credit Regulation" appear or 
reference is made to that entity or those words, those words are amended to read or mean, 
as appropriate, "Bureau of Consumer Credit Protection" or "bureau," and the Revisor of 
Statutes shall implement this revision when updating, publishing or republishing the 
statutes. 
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Sec. B-6. Maine Revised Statutes amended; revision clause. 
Wherever in 
the Maine Revised Statutes the words "Director of the Office of Consumer Credit 
Regulation" appear or reference is made to that entity or those words, those words are 
amended to read or mean, as appropriate, "Superintendent of Cbnsumer Credit 
Protection" or "superintendent," and the Revisor of Statutes shall implement this revision 
when updating, publishing or republishing the statutes. 
Sec. B-7. Effective date. This Part takes effect when approved. 
PARTC 
Sec. C-l. 9-A MRS A §1-202, sub-§8, ~A, as amended by PL 1997, c. 64, §1, is 
further amended to read: 
A. 
With respect to advances of additional funds on the loan or credit sale made 
more than 30 days after the initial advance, this exclusion applies only to advances 
made: 
(1) Pursuant to the terms of a construction financing agreement; 
(2) To protect the security or to perform the covenants of the consumer; 
(3) 
As negative amortization of principal under the terms of the financing 
agreement; 
(4) From funds withheld at consummation pending the resolution of matters that 
otherwise would tend to delay or prevent closing, including, without limitation, 
remedy of title defects or repairs to meet appraisal standards; or 
(5) Pursuant to the terms of a reverse mortgage transaction, as defined in section 
8-103, subsection + I-A, paragraph H-+ X, if the transaction is made pursuant to 
a commitment to purchase issued by, or is in a form approved for purchase by, 
any state or federal agency, instrumentality or government-sponsored enterprise, 
including, without limitation, the Federal National Mortgage Association or the 
Federal Home Loan Mortgage Corporation; 
Sec. C-2. 9-A MRSA §2-509, as amended by PL 2007, c. 99, §l, is further 
amended to read: 
§2-509. Right to prepay 
Subject to the provisions on rebate upon prepayment, section 2-5] 0, the consumer 
may prepay, in full or in part, the unpaid balance of a consumer credit transaction at any 
time without penalty, except for minimum charges as permitted by law. Notwithstanding 
any other provision of this Title, a reasonable charge may be assessed upon a consumer 
related to prepayment of a consumer loan made by a supervised financial organization 
and secured by an interest in land, other than a high-rate, high-fee mortgage, as defined in 
section 8-103, subsection + ] -A, paragraph F-+ £, if the charge is reasonably calculated to 
offset the cost of origination of the loan. 
The administrator shall adopt rules to 
implement this section. Rules adopted pursuant to this section are routine technical rules 
as defined in Title 5, chapter 375, subchapter 2-A. 
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Sec. C-3. 9-A MRSA §8-104, sub-§4, as enacted by PL 1997, c. 155, Pt. C, §2, 
is amended to read: 
4. 
The administrator may exempt, by rule, from all or part of this ntIe any class of 
transactions, other than transactions involving a mortgage described in section 8-103, 
subsection + I-A, paragraph F-I- ,£, for which, in the determination of the administrator, 
coverage under all or part of this Title does not provide a meaningful benefit to 
consumers in the form of useful information or protection. In determining which classes 
of transactions to exempt in whole or in part under this subsection, the administrator shall 
consider the following factors: 
A. 
The amount of the loans and whether the disclosures, right of rescission and 
other provisions provide a benefit to the consumers who are parties to such 
transactions, as determined by the administrator; 
B. 
The extent to which the requirements of this Title complicate, hinder or make 
more expensive the credit process for the class of transactions; 
C. 
The status ofthe borrowers, including: 
(l) Any related financial arrangements of the borrowers, as determined by the 
administrator; 
(2) The financial sophistication of the borrowers relative to the type of 
transaction; and 
(3) The importance to the borrowers of the credit, related supporting property 
and coverage under this Title, as determined by the administrator; 
D. 
Whether a loan is secured by the principal residence of the consumer; and 
E. 
Whether the goal of consumer protection would be undermined by such an 
exemption. 
Sec. C-4. 9-A MRSA §8-105, sub-§6,~, as enacted by PL 1995, c. 614, Pt. B, 
§3 and affected by §4, is amended to read: 
B. For purposes of section 8-204: 
(i) If, except as provided in subparagraph (ii), the amount disclosed as the 
finance charge does not vary from the actual finance charge by more than an 
amount equal to 112 of 1 % of the total amount of credit extended; or 
(ii) In the case of a transaction, other than a high-rate, high-fee mortgage as 
defined in section 8-103, subsection + I-A, paragraph F-I- ,£, that: 
(a) Is a refinancing of the principal balance then due and any accrued and 
unpaid finance charges of a residential mortgage transaction, as defined in 
section 8-103, subsection + I-A, paragraph H W, or is any subsequent 
refinancing of such a transaction; and 
(b) Does not provide any new consolidation or new advance, if the amount 
disclosed as the finance charge does not vary from the actual finance charge 
by more than an amount equal to 1 % of the total amount of credit extended. 
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COMMITTEE AMENDMENT ·A .. to H.P. 1301, L.D. 1869 
Sec. C-5. 9-A MRSA §8-106-A, as enacted by PL 1995, c. 326, §4, is amended 
to read: 
§8-106-A. Number of percentage points 
1. 
Beginning 2 years after the effective date of the regulations adopted under the 
federal Riegle Community Development and Regulatory Improvement Act of 1994, 
Public Law No. 103-325, Section 155, 108 Stat. 2160, 2197 (1994) and no more often 
than biennially after the first increase or decrease in the number of percentage points 
under this section, the administrator may by rule increase or decrease the number of 
percentage points specified in section 8-103, subsection + I-A, paragraph F-+, 
sl:lsparagrElflR (1) £ if the administrator determines that the increase or decrease is: 
A. 
Consistent with the consumer protection against abusive lending provided by 
amendments made by the federal Riegle Community Development and Regulatory 
Improvement Act of 1994, Title I, subtitleB, Public Law No. 103-325, 108 Stat. 
2160, 2190(1994); and 
B. 
Warranted by the need for credit. 
2. 
An increase or decrease under subsection 1 may not result in the number of 
percentage points referred to in subsection 1 being less than 8 percentage points or greater 
than 12 percentage points. 
3. 
In determining whether to increase or decrease the number of percentage points 
referred to in subsection 1, the administrator shall consult with representatives of 
consumers, including low-income consumers, and lenders. 
The dollar amount specified in section 8-103, subsection + I-A, paragraph F-+, 
sl:lsparagrapR (2) £ must be adjusted annually on January 1 st by the annual percentage 
change in the Consumer Price Index, as reported on June 1 st of the year preceding the 
adjustment. 
This section may not be construed to limit the rate of interest or the finance charge 
that a person may charge a consumer for an extension of credit. 
Sec. C-6. 9-A MRSA §8-204, sub-§5, ~A, as enacted by PL 1981, c. 243, §25, 
is amended to read: 
A. 
A residential mortgage transaction as defined in section 8-103, subsection .}. I-A, 
paragraph H W; 
Sec. C-7. 9-A MRSA §8-206-A, sub-§15, as enacted by PL 1995, c. 326, §5, is 
amended to read: 
15. 
The administrator may, by rule or order, exempt specific mortgage products or 
categories of mortgages from any of the prohibitions specified in subsections 6 to 13 lQ 
and ll-A if the administrator finds that the exemption: 
A. 
Is in the interest of the borrowing public; and 
B. 
Applies only to products that maintain and strengthen home ownership and 
equity protection. 
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COMMITTEE AMENDMENT" A" to H.P. 1301, L.D. 1869 
Sec. C-S. 9-A MRSA §S-209, sub-§4, ~A, as enacted by PL 1995, c. 614, Pt. A, 
§ 14, is amended to read: 
A. 
Any person who purchases or is otherwise assigned a high..rate, high-fee 
mortgage, as defined in section 8-103, subsection + I-A, paragraph F-l- .e, is subject 
to all claims and defenses with respect to that mortgage that the consumer may assert 
against the creditor of the mortgage, unless the purchaser or assignee demonstrates by 
a preponderance of the evidence that a reasonable person exercising ordinary due 
diligence could not determine, based on the documentation required by this Title, the 
itemization of the amount financed and other disclosure of disbursements, that the 
mortgage was a high-rate, high-fee mortgage. This paragraph does not affect rights 
of a consumer under subsection 1, 2 or 3 or any other provision of this Title. 
Sec. C-9. 9-A MRSA §S-209, sub-§4,~, as enacted by PL 1995, c. 614, Pt. A, 
§ 14, is amended to read: 
D. 
Any person who sells or otherwise assigns a high-rate, high-fee mortgage, as 
defined in section 8-103, subsection + I-A, paragraph F-l- .e, shall include a 
prominent notice of the potential liability under this subsection as determined by the 
administrator. 
Sec. C-I0. 10 MRSA §1l41, sub-§2, as enacted by PL 1991, c. 261, is amended 
to read: 
2. Credit card issuer. "Credit card issuer" has the same meaning as "card issuer," 
as defined in Title 9-A, section 8-103, subsection + I-A, paragraph ~ H. 
Sec. C-ll. Appropriations and allocations. The following appropriations and 
allocations are made. 
PROFESSIONAL AND FINANCIAL REGULATION, DEPARTMENT OF 
Office of Consumer Credit Regulation 0091 
Initiative: Allocates funds for a Chief Field Investigator position with responsibility for 
investigating complex allegations of mortgage-related violations, including directing and 
overseeing the office's fact-gathering process, and for supervising the investigative 
activities of existing compliance examination staff and allocates for a Staff Attorney 
position with responsibility for compliance and enforcement as provided under the Maine 
Revised Statutes, Title 9-A, section 8-206-F. 
OTHER SPECIAL REVENUE FUNDS 
2007-08 
2008-09 
POSITIONS - LEGISLATIVE COUNT 
2.000 
2.000 
Personal Services 
$111,196 
$156,841 
All Other 
$22,514 
$20,144 
OTHER SPECIAL REVENUE FUNDS TOTAL 
$133,710 
$176,985 
Office of Consumer Credit Regulation 0091 
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Initiative: Allocates funds for the reclassification of the Director of the Office of 
Consumer Credit Regulation position to Superintendent of Consumer Credit Protection. 
OTHER SPECIAL REVENUE FUNDS 
Personal Services 
OTHER SPECIAL REVENUE FUNDS TOTAL 
PROFESSIONAL AND FINANCIAL 
REGULATION, DEPARTMENT OF 
DEPARTMENT TOTALS 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
2007-08 
$8,061 
$8,061 
2007-08 
$141,771 
$141,771 
2008-09 
$15,785 
$15,785 
2008-09 
$192,770 
$192,770 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment does the following. 
1. It clarifies that implementation of the multistate licensing system must reflect 
principles agreed upon by the Conference of State Bank Supervisors and the American 
Financial Services Association. 
2. It clarifies that records provided to the administrator that are confidential must be 
maintained as confidential and not disclosed except as authorized. 
3. It clarifies that construction loans are excluded from the definition of "residential 
mortgage loan." 
4. It adds a definition of "subprime mortgage loan." 
5. It clarifies that counseling organizations must be approved by the United States 
Department of Housing and Urban Development, the Maine State Housing Authority or 
the Department of Professional and Financial Regulation, Bureau of Consumer Credit 
Protection. 
6. It requires rulemaking to further define tangible net benefit before January 1, 
2008. 
7. 
It clarifies that the provision requiring a creditor to detennine a borrower's 
reasonable ability to pay before making a loan applies only to subprime mortgage loans. 
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COMMITTEE AMENDMENT .. A" to H.P. 1301, L.D. 1869 
8. It clarifies that a borrower must pay the reasonable costs of the lender incurred 
before cure of default. 
9. It clarifies that assignees or purchasers of loans are not subject to the violations 
provision except as specifically provided. 
10. It clarifies that punitive damages are permitted for violations of the high-rate, 
high-fee mortgage provisions or the flipping provision when the violation is malicious or 
reckless. 
11. 
It excludes residential mortgage loans from potential criminal liability and 
clarifies that fines and terms of imprisonment for violations of the bill's provisions are in 
accordance with the Maine Revised Statutes, Title 17-A. 
12. It requires the Superintendent of Consumer Credit Protection to report annually 
to the Legislature. 
13. It adds a requirement of good faith and fair dealing on loan brokers. 
14. It establishes the Bureau of Consumer Credit Protection to replace the current 
Office of Consumer Credit Regulation within the Department of Professional and 
Financial Regulation. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
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Approved: 05/23/07 frac:.. 
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LD 1869 
LR 108(02) 
An Act To Protect Maine Homeowners from Predatory Lending 
Fiscal Note for Bill as Amended by Committee Amendment ,,~ " 
Committee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium revenue increase - Other Special Revenue Funds 
Appropriations! Allocations 
Other Special Revenue Funds 
Correctional and Judicial Impact Statements 
2007-08 
$141,771 
This bill may increase the number of civil suits filed in the court system. 
2008-09 
$192,770 
Projections 
2009-10 
$202,264 
The collection of additional filing fees may also increase General Fund revenue by minor amounts. 
Establishes new Class E crimes. 
The collection of additional fines may also increase General Fund revenue by minor amounts. 
Fiscal Detail and Notes 
Projections 
2010-11 
$21: 
Allocates funds for the personal services and other costs of establishing two positions as provided under Sec. A-22 of 
the bill. Also allocates funds for the reclassification of the Director of the Office of Consumer Credit Regulation 
position to Superintendent of Consumer Credit Protection. The Office of Consumer Credit Regulation in the 
Department of Professional and Financial Regulation will attempt to absorb the costs of the new positions within 
existing resources but may ultimately need to rely on increased assessments on non-bank lenders and mortgage 
brokers as provided in the bill. The costs of the reclassification and any additional costs of the bill can be absorbed 
utilizing existing budget resources. 
The additional costs to the Department of the Attorney General can be absorbed utilizing existing budgeted resources. 
LR0108(02) - Fiscal Note - Page 1 of 1