An Act To Conform State MOIigage Laws with Federal Laws
Maine Legislature, Session 124, LD 1439
Committee Amendment CA_B_S222 (Senate)
Amends: 9-A MRSA §8

COMMITTEE AMENDMENT" 13" to S.P. 523, L.D. 1439, Bill, "An Act To 
Conform State MOIigage Laws with Federal Laws" 
Amend the bill in Part A by striking out all of section 4 (page 1, lines 27 to 35 and 
'Sec. A-4. 9-A MRSA §8-103, sub-§l-A, 10, as amended by PL 2007, c. 471, 
§5 and affected by § 18, is repealed and the following enacted in its place: 
U. 
"Points and fees" has the same meaning as set forth in 12 Code of Federal 
Regulations, Section 226.32(b)(l). In addition, "points and fees" includes: 
(1) 
The maximum prepayment fees and penalties that may be charged or 
collected under the terms of the loan documents; 
(2) All prepayment fees and penalties that are incurred by the borrower if the 
loan refinances a previous loan made or currently held by the same creditor or an 
affiliate of the creditor; and 
(3) All compensation paid directly or indirectly to a mortgage broker from any 
source, including a mortgage broker that originates a loan in its own name in a 
tab Ie-funded transaction. 
For open-end loans, points and fees are calculated by adding the total points and fees 
known at or before closing, including the maximum prepayment penalties that may 
be charged or collected under the terms of the loan documents and the minimum 
additional fees the borrower would be required to pay to draw down an amount equal 
to the total credit line.' 
Amend the bill in Part A by striking out all of section 5 (page 2, lines 7 to 13 in L.D.) 
and inserting the following: 
'Sec. A-5. 9-A MRSA §8-103, sub-§l-A, W, as enacted by PL 2007, c. 273, Pt. 
A, §4 and affected by §§37 and 41, is amended to read: 
" 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT"£" to S.P. 523, L.D. 1439 
V. 
"Rate spread home loan" means any loan for which the rate spread must be 
reported under the Home Mortgage Disclosure Act of 1975, Regulation C except that, 
beginning October 1, 2009, "rate spread home loan" has the same meaning as set 
forth for "higher-priced mOIigage loans" in 12 Code of Federal Regulations, Section 
203.4(a)(12); and 226.35(a). In addition, "rate spread home loan" means any loan 
that meets the criteria ofa high-rate, high-fee mortgage.' 
Amend the bill in Part A in section 13 in §8-206-1 in subsection 1 in paragraph B by 
striking out all of the first blocked paragraph (page 10, lines 29 to 37 in L.D.) and 
inseliing the following: 
'B. Beginning October 1, 2009, a higher-priced mortgage loan may not include a 
penalty for paying all or pali of the principal before the date on which the principal is 
due except as allowed under subparagraph (I). The exception under subparagraph (I) 
does not apply to high-rate, high-fee mortgages, which are subject to section 
8-206-H, subsection I, paragraph B, subparagraph (4), and alternative mortgage 
transactions, which are subject to section 9-:-308.' 
Amend the bill in Part B in section 1 in Article 13 in § 13-1 02 in subsection 1 by 
striking out all of paragraph A (page 15, lines I and 2 in L.D.) and inseliing the 
following: 
'A. The receipt, collection, distribution and analysis of information common for the 
processing, underwriting or modification of a residential mortgage loan; and' 
Amend the' bill in Part B in section I in Aliicle 13 in § 13-1 03 in subsection 2 by 
inserting after paragraph D the following: 
'E. An employee of a nonprofit organization exempt from taxation under the United 
States Internal Revenue Code, Section 50I(c)(3) and engaged in the financing of 
housing for low-income people under a pi'ogram designed specifically for that 
purpose, to the extent exeinpted by the administrator by rule, advisory ruling or 
interpretation, after taking into consideration any rule, advisOIY ruling or 
interpretation issued by the United States Department of Housing and Urban 
Development. 
F. A retail seller of a manufactured home to the extent determined by any rule, 
advisory ruling or interpretation issued by the United States Depmiment of Housing 
and Urban Development.' 
Amend the bill in Part B in section 1 in Aliicle 13 in § 13-104 in subsection 4 in 
paragraph B by striking out all of subparagraph (I) (page 18, lines 27 and 28 in L.D.) and 
inserting the following: 
'(I) An independent credit repOli from a consumer repOIiing agency described in 
the federal Fair Credit RepOIiing Act, Section 603(p) except that information on a 
credit repOli may not be used as the sole basis for the denial of a mortgage loan 
originator license pursuant to section 13-105.; and' 
Amend the bill in Pali B in section I in Aliicle 13 in § 13-1 05 in subsectiOli 2 by 
striking out all of the first indented paragraph (page 19, lines 3 and 4 in L.D.) and 
inseliing the following: 
COMMITTEE AMENDMENT 
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F) 
COMMITTEE AMENDMENT" 13" to S.P. 523, L.D. 1439 
'2. No felony conviction. 
Except if the administrator determines that a conviction 
as described in paragraph A does not affect the applicant's demonstration of good 
character and fitness under subsection 3, the applicant has not been convicted of, or 
pleaded guilty or nolo contendere to, a felony in a domestic, foreign or military couli:' 
Amend the bill in PaIi B in section 1 in Article 13 in § 13-116 by striking out all of 
subsections 13 and 14 (page 28, lines 29 to 33 in L.D.) and inseiting the following: 
'13. Excessive insurance. Cause or require a borrower to obtain property insurance 
coverage in an amount that exceeds the replacement cost of the improvements as 
established by the property insurer; 
14. 
Account. 
Fail to truthfully account for money belonging to a party to a 
residential mortgage loan transaction; or 
15. Good faith and fair dealing. Fail to comply with the duties of good faith and 
fair dealing as required in section 10-303-A.' 
SUMMARY 
This amendment makes clarifying changes to retain existing provisions in Maine law 
not intended to be changed in the bill. 
The amendment makes changes to Part B of the bill to provide for an exemption from 
licensing as a mortgage loan originator for nonprofit organizations engaged in financing 
housing for low-income persons and for retail sellers of manufactured homes to the extent 
determined by the federal Department of HOllsing and Urban Development. The 
amendment clarifies the requirements for licensing related to an applicant's criminal 
history and credit history. The amendment also includes a provision making the duties of 
good faith and fair dealing apply to mortgage loan originators. 
COMMIT 
'E AMENDMENT