An Act To Regulate Foreclosure Negotiators
Maine Legislature, Session 124, LD 0503
Committee Amendment CA_A_S216 (Senate)
Amends: 32 MRSA §6183

COMMITTEE AMENDMENT" A" to S.P. 198, L.D. 503, Bill, "An Act To 
Regulate Foreclosure Negotiators" 
Amend the bill by striking out all of section 1 and inserting the following: 
'Sec. 1. 32 MRSA §6183 is enacted to read: 
§6183. Debt management services related to residential mortgage loans 
A person that engages in debt management services as described in section 6172, 
subsection 2, paragraph D related to a consumer's residential mortgage loan shall comply 
with the requirements of this chapter governing debt management service providers, 
subject to the following conditions and provisions. 
1. Good faith and fair dealing. A person subject to this section shall act in good 
faith and with fair dealing in any transaction, practice or course of business in connection 
with the providing of debt management services. 
2. Training. With respect to section 6174-B, training leading to certification of the 
counselor must relate to subject matter specific to such activity, including but not limited 
to the tax consequences to the consumer of forgiven debt, the consumer's options for 
discharge of debt, including but not limited to the availability of bankruptcy, and all other 
options available to the consumer. The consumer education program must also include 
information about the tax consequences of forgiven debt. 
3. Written reports. With respect to section 6177, subsection 1, the periodic written 
reports must consist of written updates provided to the consumer on at least a quarterly 
basis as well as a final accounting provided to the consumer. 
4. Exceptions. Section 6179, subsections 1 and 3 do not apply to the provisions of 
this section. 
5. Disclosure. If the service to be provided to the consumer includes the sale or 
transfer of an interest in real property: 
Page I - 124LR0999(02)-1 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 198, L.D. 503 
A. The consumer's right to cancel the agreement by providing a written notice of 
cancellation to the other party pursuant to section 6176, subsection 2, paragraph E is 
effective only until the date of consummation of the transfer; 
B. 
The debt management service provider must provide the consumer with the 
names and contact information for 3rd-party housing counselors approved by the 
United States Department of Housing and Urban Development; and 
C. The debt management service provider must specifically advise the consumer in 
writing whether the consumer will be liable for a deficiency or not liable for a 
deficiency resulting from the sale or transfer. 
6. 
Damages. 
In addition to any other remedies available to the consumer, a 
consumer has a right to recover consequential damages from the debt management 
service provider for a violation of this section.' 
SUMMARY 
This amendment clarifies that a business acting as a foreclosure negotiator relating to 
a residential mortgage is subject to the laws regUlating debt management service 
providers but exempts that business from certain provisions of current law, such as the 
requirements to provide credit counseling services and to provide the consumer with 
certain internal business records. In addition, since a foreclosure negotiator arranges for 
the purchase of property, the amendment provides that an agreement may be cancelled 
until the date of the transfer of the property. The amendment requires that a foreclosure 
negotiator notify a consumer with contact information for a housing counselor and advise 
the consumer about whether the consumer will be liable for any deficiency resulting from 
the transfer. The amendment also gives a consumer the right to recover consequential 
damages for violations. 
The amendment retains consumer protections such as the requirement to register with 
the Department of Professional and Financial Regulation, Bureau of Consumer Credit 
Protection, post a surety bond to ensure compliance and accountability with the law and 
provide written agreements to a consumer. 
COMMITTEE AMENDMENT 
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