An Act To Preserve Home Ownership and Stabilize the Economy by Preventing Unnecessary Foreclosures
Maine Legislature, Session 124, LD 1418
Committee Amendment CA_A_H524 (House)
Amends: 9-A MRSA §6, 9-A MRSA §9, 9-B MRSA §162, 14 MRSA §2401, 14 MRSA §6111, 14 MRSA §6203-A, 14 MRSA §6321, 14 MRSA §6321-A, 14 MRSA §6323, 36 MRSA §4641-C

COMMITTEE AMENDMENT "A" to H.P. 994, L.D. 1418, Bill, "An Act To 
Preserve Home Ownership and Stabilize the Economy by Preventing Unnecessary 
Foreclosures" 
Amend the bill by striking out everything after the enacting clause and before the 
emergency clause and inserting the following: 
'Sec. 1. 4 MRS A §18-B, sub-§12 is enacted to read: 
12. Mediation involving mortgage foreclosures on owner-occupied residential 
property. The foreclosure mediation program is a program within the Supreme Judicial 
Court to provide mediation in the courts throughout the State pursuant to Title 14, section 
6321-A. 
A. The Supreme Judicial Court, or a person or organization designated by the court, 
shall administer the foreclosure mediation program. 
B. A foreclosure mediation program fund is established as a nonlapsing, dedicated 
fund within the Administrative Office of the Courts. Fees collected to support 
mediation services pursuant to Title 14, section 6321-A, subsection 3 must be 
deposited in the fund. The Administrative Office of the Courts shall use the resources 
in the fund to cover the costs of providing mediation services as required under Title 
14, section 6321-A. 
Sec. 2. 4 MRS A §104, as amended by PL 2009, c. 136, § 1, is further amended to 
read: 
§104. Active retired justices 
Any Justice of the Superior Court who has retired from the court under this chapter in 
effect prior to December 1, 1984, or any Justice of the Superior Court who retires or 
terminates that justice's service on the court in accordance with chapter 27, except for a 
disability retirement, is eligible for appointment as an Active Retired Justice of the 
Superior Court. The Governor, subject to review by the joint standing committee of the 
Legislature having jurisdiction over judiciary matters and to confirmation by the 
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to H.P. 994, L.D. 1418 
Legislature, may appoint any eligible justice as an Active Retired Justice of the Superior 
Court for a term of7 years, unless sooner removed. That justice may be reappointed for a 
like term. Any justice so appointed and designated thereupon constitutes a part of the 
court from which that justice has retired and has the same jurisdiction and is subject to the 
same restrictions therein as before retirement. An Active Retired Justice of the Superior 
Court may serve as an arbitrator and conduct arbitration in accordance with rules that 
may be adopted by the Supreme Judicial Court, except that nothing in this section 
requires the Supreme Judicial Court to adopt those rules. An Active Retired Justice of the 
Superior Court may chair screening panels in accordance with Title 24, chapter 21, 
subchapter 4-A. An Active Retired Justice of the Superior Court may act only in the 
cases and matters and hold court only at the terms and times as that justice is directed and 
assigned by the Chief Justice of the Superior Court. Any Active Retired Justice of the 
Superior Court may be directed by the Chief Justice to hold any term of the Superior 
Court in any county and when so directed has authority and jurisdiction therein the same 
as if that justice were the regular justice of that cOUli. Whenever the Chief Justice of the 
Superior Court so orders, that justice may hear all matters and issue all orders, notices, 
decrees and judgments in vacation that any justice of that Superior Court is authorized to 
hear and issue. An Active Retired Justice of the Superior Court may be assigned by the 
Chief Justice of the Superior Court to act as a mediator for the foreclosure mediation 
program in accordance with Title 14, section 6321-A, subsection 7. An Active Retired 
Justice of the Superior Court receives reimbursement for expenses actually and 
reasonably incurred in the performance of that justice's duties. 
Sec. 3. 4 MRS A §157-B, as amended by PL 2009, c. 136, §2, is further amended 
to read: 
§157-B. Active retired judges; appointment 
Any Judge of the District Court who has retired from the court under this chapter 
prior to December 1, 1984, or any Judge of the District Court who retires or terminates 
that judge's service on the court in accordance with chapter 27, except for a disability 
retirement, is eligible for appointment as an Active Retired Judge of the District Court as 
provided. The Governor, subject to review by the joint standing committee of the 
Legislature having jurisdiction over jUdiciary matters and to confirmation by the 
Legislature, may appoint any eligible judge to be an Active Retired Judge of the District 
Court for a term of 7 years, unless sooner removed. That judge may be reappointed for a 
like term. Any judge so appointed and designated thereupon constitutes a part of the court 
from which that judge has retired and has the same jurisdiction and is subject to the same 
restrictions therein as before retirement. An Active Retired Judge of the District Court 
may serve as an arbitrator and conduct arbitration in accordance with rules that may be 
adopted by the Supreme Judicial Court, except that nothing in this section requires the 
Supreme Judicial Court to adopt those rules. An Active Retired Judge of the District 
Court may chair screening panels in accordance with Title 24, chapter 21, subchapter 
4-A. An Active Retired Judge of the District Court may act only in those cases and 
matters and hold court only at those sessions and times as that judge is directed and 
assigned by the Chief Judge of the District Court. Any Active Retired Judge of the 
District Court may be directed by the Chief Judge to hold any session of the District 
Court in any district and when so directed has authority and jurisdiction therein the same 
as if that judge were the regular judge of that court and, whenever the Chief Judge of the 
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COMMIITEE AMENDMENT ,A "to H.P. 994, L.D. 1418 
District Court so orders, may hear all matters and issue all orders, notices, decrees and 
judgments that any Judge of that District Court is authorized to hear and issue. An Active 
Retired Judge of the District Court receives reimbursement for expenses actually and 
reasonably incurred in the performance of that judge's duties. An Active Retired Judge of 
the District Court may be assigned by the Chief Judge of the District Court to act as a 
mediator for the foreclosure mediation program in accordance with Title 14, section 
6321-A, subsection 7. 
Sec. 4. 9-A MRSA §6-116, sub-§2, as amended by PL 1995, c. 397, §1, is further 
amended to read: 
2. 
Financial information not normally available to the public that is submitted in 
confidence by an individual or organization to comply with the licensing, registration or 
other regulatory functions of the administrator; aH€l 
Sec. 5. 9-A MRSA §6-116, sub-§3, as enacted by PL 1985, c. 763, Pt. A, §51, is 
amended to read: 
3. 
Proposed loan documents and other commercial paper submitted to be approved 
for use and not yet available to the general public or customers of the submitting 
institution or firm.,.; and 
Sec. 6. 9-A MRSA §6-116, sub-§4 is enacted to read: 
4. 
Any contact information or financial information relating to a mortgagor 
submitted pursuant to Title 14, section 6111, subsection 3-A and any written notice sent 
to a mortgagor pursuant to Title 14, section 6111, subsection 4-A that includes a 
mortgagor's contact information. 
Sec. 7. 9-A MRSA §9-40S is enacted to read: 
§9-408. Violation of the Maine Unfair Trade Practices Act 
Any violation of this article constitutes a violation of the Maine Unfair Trade 
Practices Act. 
Sec. S. 9-B MRSA §162, sub-§6 is enacted to read: 
6. Disclosure of notice of mort!!a!!or's right to cure. The financial records pertain 
to a notice of mortgagor's right to cure and are disclosed to the Bureau of Consumer 
Credit Protection pursuant to Title 14, section 6111, subsection 3-A. 
Sec. 9. 
MRSA §2401, sub-§3, as amended by PL 1993, c. 114, §2 and 
affected by §4, is further amended to read: 
3. Judgment required; recording and contents. The judgment in the proceeding 
must be signed by the judge and contain the following provisions: 
A, The names and addresses, if known, of all parties to the action, including the 
counsel of record; 
B. The docket number; 
C. A finding that all paJ1ies have received notice of the proceedings in accordance 
with the applicable provisions of the Maine Rules of Civil Procedure and, if the 
COMMITTEE AMENDMENT 
COMMITIEE AMENDMENT ,A" to H.P. 994, L.D. 1418 
notice was served or given pursuant to an order of a court, including service by 
publication, that the notice was served or given pursuant to the order; 
D. An adequate description of real estate involved; aft€!. 
F. 
A certification to be signed by the clerk after the appeal period has expired, 
certifying that the applicable period has expired without action or the final judgment 
has been entered after remand following appeal:-; and 
G. With regard to mortgage foreclosure actions, the title "judgment of foreclosure 
and sale," the street address of the real estate involved, if any, and the book and page 
number of the mortgage. 
Unless a proposed judgment with the provisions required in this subsection is presented 
to the court at the time of the cOUli's decision, the court shall name the party responsible 
for preparing a judgment with the required provisions. An attested copy of the judgment 
with the signed clerk's certification must be recorded in the registry of deeds for the 
county or counties where the subject property is located within one year of the entry of 
the final judgment unless otherwise ordered by the court. 
For the purposes of this 
section, a judgment is not final until all applicable appeal periods have expired and any 
appellate proceedings and subsequent actions on remand, if any, have been concluded. 
The court shall name the party responsible for recording the attested copy of the judgment 
and for paying the appropriate recording fees. The judgment has no effect as to any 
person not a party to the proceeding who has no actual knowledge of the judgment unless 
an attested copy of the judgment is recorded in accordance with this section. A judgment 
of foreclosure and sale for recording may not be recorded in the registry of deeds unless it 
is in compliance with the requirements of this section. Failure to comply with this section 
does not affect the validity of the underlying judgment. 
Sec. 10. 14 MRSA §6111, sub-§l, as amended by PL 1997, c. 579, § 1, is further 
amended to read: 
1. Notice; payment. With respect to mortgages upon residential property located in 
this State when the mortgagor is occupying all or a portion of the property as the 
mortgagor's primary residence and the mortgage secures a loan for personal, family or 
household use, the mortgagee may not accelerate maturity of the unpaid balance of the 
obligation or otherwise enforce the mortgage because of a default consisting of the 
mortgagor's failure to make any required payment, tax payment or insurance premium 
payment, by any method authorized by this chapter until at least:J.(} 35 days after the date 
that written notice pursuant to subsection I-A is given by the mortgagee to the mortgagor 
and any cosigner against whom the mortgagee is enforcing the obligation secured by the 
mortgage at the last known addresses of the mortgagor and any cosigner that the 
mortgagor has the right to cure the default by full payment of all amounts that are due 
without acceleration, including reasonable interest and late charges specified in the 
mortgage or note as well as reasonable attorney's fees. If the mortgagor tenders payment 
of the amounts before the date specified in the notice, the mortgagor is restored to all 
rights under the mOligage deed as though the default had not occurred. 
Sec. 11. 14 MRSA §6111, sub-§I-A is enacted to read: 
I-A. Contents of notice. A mortgagee shall include in the written notice under 
subsection 1 the following: 
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A. The mortgagor's right to cure the default as provided in subsection 1; 
B. An itemization of all past due amounts causing the loan to be in default; 
C. An itemization of any other charges that must be paid in order to satisfY the full 
obligations of the loan; 
D. A statement that the mortgagor may have options available other than foreclosure, 
that the mortgagor may discuss available options with the mortgagee, the mortgage 
servicer or a counselor approved by the United States Department of Housing and 
Urban Development and that the mortgagor is encouraged to explore available 
options prior to the end of the right-to-cure period; 
E. The address, telephone number and other contact information for persons having 
authority to modifY a mortgage loan with the mortgagor to avoid foreclosure, 
including, but not limited to, the mOligagee, the mortgage servicer and an agent of the 
mortgagee; 
F. 
The name, address, telephone number and other contact infonnation for all 
counseling agencies approved by the United States Department of Housing and 
Urban Development operating to assist mortgagors in the State to avoid foreclosure; 
and 
G. Where mediation is available as set forth in section 6321-A, a statement that a 
mortgagor may request mediation to explore options for avoiding foreclosure 
judgment. 
Sec. 12. 14 MRSA §6111, sub-§3-A is enacted to read: 
3-A. Information; Bureau of Consumer Credit Protection. Within 3 days of 
providing written notice to the mortgagor as required by subsections 1 and I-A, the 
mortgagee shall file with the Department of Professional and Financial Regulation, 
Bureau of Consumer Credit Protection, in electronic format as designated by the Bureau 
of Consumer Credit Protection, information including: 
A. The name and address of the mortgagor and the date the written notice required 
by subsections 1 and I-A was mailed to the mortgagor and the address to which the 
notice was sent; 
B. The address, telephone number and other contact information for persons having 
authority to modifY a mortgage loan with the mortgagor to avoid foreclosure, 
including, but not limited to, the mortgagee, the mortgage servicer and an agent of the 
mortgagee; and 
C. 
Other information, as permitted by state and federal law, requested of the 
mOligagor by the Bureau of Consumer Credit Protection. 
Sec. 13. 14 MRSA §6111, sub-§3-B is enacted to read: 
3-B. Report. On a quarterly basis, the Department of Professional and Financial 
Regulation, Bureau of Consumer Credit Protection shall report to the joint standing 
committee of the Legislature having jurisdiction over insurance and financial services 
matters on the number of notices received pursuant to subsection 3-A. To the extent 
information is available, the report must also include information on the number of 
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COMMITIEE AMENDMENT 'A " 
to H.P. 994, L.D. 14 I 8 
foreclosure filings based on data collected from the court and the Department of 
Professional and Financial Regulation, Bureau of Financial Institutions and on the types 
of lenders that are filing foreclosures. 
Sec. 14. 14 MRSA §6111, sub-§4-A is enacted to read: 
4-A. Letter to mortgagor. Within 3 days of receiving electronic information from 
the mortgagee as set fOJih in subsection 3-A, the Department of Professional and 
Financial Regulation, Bureau of Consumer Credit Protection shall send a written notice to 
the mortgagor that includes a summary of the mortgagor's rights and available resources, 
including information concerning the foreclosure mediation program as established in 
section 6321-A. 
Sec. 15. 14 MRS A §6112 is enacted to read: 
§6112. Statewide outreach 
To the extent resources are available pursuant to subsection 4, the Department of 
Professional and Financial Regulation, Bureau of Consumer Credit Protection shall 
engage in the following activities. 
1. Hotline. The Department of Professional and Financial Regulation, Bureau of 
Consumer Credit Protection shall establish a statewide hotline to facilitate a mortgagor's 
communication with housing counselors approved by the United States Department of 
Housing and Urban Development for the purposes of discussing options to avoid 
foreclosure. 
2. Outreach; housing counseling services. The Department of Professional and 
Financial Regulation, Bureau of Consumer Credit Protection, in consultation with the 
Maine State Housing Authority, shall coordinate an outreach program to help families 
with their housing needs with the intent of expanding the outreach program statewide. 
The bureau shall use a portion of the funds received pursuant to subsection 4 for contracts 
with nonprofit organizations that provide housing counseling services and mortgage 
assistance. 
3. Form. The Department of Professional and Financial Regulation, Bureau of 
Consumer Credit Protection, after consultation with interested parties, shall develop for 
use by the Supreme Judicial Court one form for making a request for mediation and 
making an answer to a foreclosure complaint as described in section 6321-A, subsection 
2. 
. 
4. Funding. The Department of Professional and Financial Regulation, Bureau of 
Consumer Credit Protection shall establish a nonlapsing, dedicated account for the 
deposit of revenues transferred from the Department of Administrative and Financial 
Services, Maine Revenue Services pursuant to Title 36, section 4641-8, subsection 6 and 
for any funds received from any public or private source. The Bureau of Consumer Credit 
Protection shall use the account to cover the costs of carrying out the duties in this section 
and section 6111, subsections 3-A, 3-B and 4-A, and the funds in the account may not be 
used for any other purpose. 
5. Report. Beginning January I, 20 10, the Department of Professional and Financial 
Regulation, Bureau of Consumer Credit Protection shall report every 6 months on the 
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revenues received pursuant to subsection 4, the expenditures made to carry out the 
purposes of this section, any financial orders submitted by the bureau and any updated 
assumptions related to the bureau's revenues and expenditures in accordance with this 
section. The report must be submitted to the joint standing committee of the Legislature 
having jurisdiction over appropriations and financial affairs and the joint standing 
committee of the Legislature having jurisdiction over insurance and financial services 
matters. 
Sec. 16. 14 MRSA §6203-A, first ~, as amended by PL 1995, c. 106, § 1, is 
further amended to read: 
Any holder of a mortgage on real estate that is granted by a corporation, partnership, 
including a limited partnership, limited liability company or trustee of a trust and that 
contains a power of sale, or a person authorized by the power of sale, or an attorney duly 
authorized by a writing under seal, or a person acting in the name of the holder of such 
mortgage or any such authorized person, may, upon breach of condition and without 
action, do all the acts authorized or required by the power; except that a sale under the 
power is not effectual to foreclose a mortgage unless, previous to the sale, notice has been 
published once in each of 3 successive weeks, the first publication to be not less than 21 
days before the day of the sale in a newspaper of general circulation in the town where 
the land lies and which notice must prominently state the street address of the real estate 
encumbered by the mortgage deed, if any, and the book and page number of the 
mortgage. This provision is implied in every power of sale mortgage in which it is not 
expressly set forth. For mortgage deeds executed on or after October 1, 1993, the power 
of sale may be used only if the mortgage deed states that it is given primarily for a 
business, commercial or agricultural purpose. A copy of the notice must, at least 21 days 
before the date of the sale under the power in the mortgage, be recorded in each registry 
of deeds in which the mortgage deed is or by law ought to be recorded and must be 
served on the mortgagor or its representative in interest, er may be sent by registered mail 
addressed to it the mortgagor or the mortgagor's representative at its the mortgagor's last 
known address, or to the person and to the address as may be agreed upon in the 
mortgage, at least 21 days before the date of the sale under the power in the mortgage. 
The mortgagee shall provide a copy of the notice to a tenant if the mortgagee knows or 
should know by exercise of due diligence that the property is occupied as a rental unit. 
Upon request from a mortgagee, the mortgagor or its representative in interest shall 
provide the name, address and other contact information for any tenant. Notice to a 
tenant may be served on the tenant by sheriff or may be sent by first class mail and 
registered mail at the tenant's last known address. No less than 21 days after service of 
the notice required by this section, the mortgagee may institute an action pursuant to 
section 6001. This paragraph may not be construed to prohibit an action for forcible 
entry and detainer in accordance with section 6001 for a reason that is not related to a 
foreclosure sale. Any power of sale incorporated into a mortgage is not affected by the 
subsequent transfer of the mortgaged premises from the corporation, partnership, 
including a limited partnership, limited liability company or trustee of the trust to any 
other type of organization or to an individual or individuals. The power of sale may not 
be used to foreclose a mortgage deed granted by a trustee of a trust if at the time the 
mOltgage deed is given the real estate is used exclusively for residential purposes, the real 
estate has 4 or fewer residential units and one of the units is the principal residence of the 
owner of at least 1/2 of the beneficial interest in the trust. If the mortgage deed contains a 
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statement that at the time the mortgage deed is given the real estate encumbered by the 
mortgage deed is not used exclusively for residential purposes, that the real estate has 
more than 4 residential units or that none of the residential units is the principal residence 
of the owner of at least 112 of the beneficial interest in the trust, the statement 
conclusively establishes these facts and the mortgage deed may be foreclosed by the 
power of sale. The method of foreclosure of real estate mortgages provided by this 
section is specifically subject to the order of priorities set out in section 6205. 
Sec. 17. 14 MRSA §6321, 3rd <1[, as amended by PL 2007, c. 391, §9, is further 
amended to read: 
The foreclosure must be commenced in accordance with the Maine Rules of Civil 
Procedure, and the mortgagee shall within 10 days of commencing the foreclosure also 
record a copy of the complaint or a clerk's certificate of the filing of the complaint in each 
registry of deeds in which the mortgage deed is or by law ought to be recorded and such a 
recording thereafter constitutes record notice of commencement of foreclosure. 
The 
mortgagee shall further certify and provide evidence that all steps mandated by law to 
provide notice to the mortgagor pursuant to section 6111 were strictly performed. The 
mortgagee shall certify proof of ownership of the mortgage note and produce evidence of 
the mortgage note, mortgage and all assignments and endorsements of the mortgage note 
and mortgage. 
The complaint must allege with specificity the plaintiffs claim by 
mortgage on such real estate, describe the mortgaged premises intelligibly, including the 
street address ofthe mortgaged premises, if any, which must be prominently stated on the 
first page of the complaint, state the book and page number of the mortgage, state the 
existence of public utility easements, if any, that were recorded subsequent to the 
mortgage and prior to the commencement of the foreclosure proceeding and without 
mortgagee consent, state the amount due on the mortgage, state the condition broken and 
by reason of such breach demand a foreclosure and sale. If a clerk's certificate of the 
filing of the complaint is presented for recording pursuant to this section, the clerk's 
certificate must bear the title "Clerk's Certificate of Foreclosure" and prominently state, 
immediately after the title, the street address of the mortgaged premises, if any, and the 
book and page number of the mortgage. Service of process on all parties in interest and 
all proceedings must be in accordance with the Maine Rules of Civil Procedure. "Parties 
in interest" includes mortgagors, holders of fee interest, mortgagees, lessees pursuant to 
recorded leases or memoranda thereof, lienors and attaching creditors all as reflected by 
the indices in the registry of deeds and the documents referred to therein affecting the 
mortgaged premises, through the time of the recording of the complaint or the clerk's 
certificate. Failure to join any party in interest does not invalidate the action nor any 
subsequent proceedings as to those joined. Failure of the mortgagee to join, as a party in 
interest, the holder of any public utility easement recorded subsequent to the mortgage 
and prior to commencement of foreclosure proceedings is deemed consent by the 
mortgagee to that easement. Any other party having a claim to the real estate whose 
t1aim is not recorded in the registry of deeds as of the time of recording of the copy of the 
complaint or the clerk's certificate need not be joined in the foreclosure action, and any 
such party has no claim against the real estate after completion of the foreclosure sale, 
except that any such party may move to intervene in the action for the purpose of being 
added as a party in interest at any time prior to the entry of judgment. Within 3 days of 
recording a copy of the complaint or a clerk's certificate of the filing in the registry of 
deeds, the mortgagee shall provide a copy of the complaint or of the clerk's certificate 
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COMMITIEE AMENDMENT tit "to H.P. 994, L.D. 1418 
that prominently states, immediately after the title, the street address of the mortgaged 
premises, if any, and the book and page number of the mortgage to the municipal assessor 
of the municipality in which the property is located and, if the mortgaged premises is 
manufactured housing as defined in Title 10, section 9002, subsection 7, to the owner of 
any land leased by the mortgagor. 
Sec. 18. 14 MRSA §6321-A is enacted to read: 
§6321-A. Foreclosure mediation program 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Court" means the Supreme Judicial Court. 
B. 
"Program" means the foreclosure mediation program established pursuant to 
su bsection 3. 
2. Notice; summons and complaint; foreclosure proceedings. When a plaintiff 
commences an action for the foreclosure of a mortgage on an owner-occupied residential 
real property of no more than 4 units, the plaintiff shall attach to the front of the 
foreclosure complaint a one-page form notice to the defendant as developed by the 
Department of Professional and Financial Regulation, Bureau of Consumer Credit 
Protection in accordance with this subsection and section 6112, subsection 3. The form 
notice must be written in language that is plain and readily understandable by the general 
public. 
At a minimum, the form notice must contain the following: 
A. A statement that failure to answer the complaint will result in foreclosure of the 
property subject to the mortgage; 
B. A sample answer and an explanation that the defendant may fill out the form and 
return it to the court in the envelope provided as the answer to the complaint. If the 
debtor returns the form to the court, the defendant does not need to file a more formal 
answer or responsive pleading and will be scheduled for mediation in accordance 
with this section; and 
C. A description of the program. 
3. Foreclosure mediation program established. Under the authority granted in 
Title 4, section 18-B, the court shall adopt rules to establish a foreclosure mediation 
program to provide mediation in actions for foreclosure of mortgages on owner-occupied 
residential property with 110 more than 4 units. The program must address all issues of 
foreclosure, including but not limited to reinstatement of the mortgage, modification of 
the loan and restructuring of the mortgage debt. Mediations conducted pursuant to the 
program must use the calculations, assumptions and forms that are established by the 
Federal Deposit Insurance Corporation and published in the Federal Deposit Insurance 
Corporation Loan Modification Program Guide as set out on the Federal Deposit 
Insurance Corporation's publicly accessible website. 
4. Financial information confidential. Except for financial information included as 
part of a foreclosure complaint or any answer filed with the court, any financial statement 
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COMMITTEE AMENDMENT "A " 
to H.P. 994, L.D. 1418 
or information provided to the court or to the parties during the course of mediation in 
accordance with this section is confidential and is not available for public inspection. 
Any financial statement or information must be made available as necessary, to the court, 
the attorneys whose appearances are entered in the case and the parties to the mediation. 
Any financial statement or information designated as confidential under this subsection 
must be kept separate from other papers in the case and may not be used for purposes 
other than mediation. 
5. No waiver of rights. The plaintiffs or defendant's rights in the foreclosure action 
are not waived by participating in the program. 
6. Commencement of mediation. When a defendant returns the notice required 
under subsection 2 or otherwise requests mediation or makes an appearance in a 
foreclosure action, the court shall refer the plaintiff and defendant to mediation pursuant 
to this section. 
7. Provisions of mediation services; filing and fees. The court shall: 
A. Assign mediators, including active retired justices and judges pursuant to Title 4, 
sections 104 and 157-B, who: 
(1) Are trained in mediation and all relevant aspects of the law; 
(2) Have knowledge of community-based resources that are available in the 
judicial districts in which they serve; 
(3) Have knowledge of mortgage assistance programs; and 
(4) Are trained in using the relevant Federal Deposit Insurance Corporation 
forms and worksheets. 
The court may establish a training program for mediators and require that mediators 
receive such training prior to being appointed; 
B. 
Report annually to the joint standing committee of the Legislature having 
jurisdiction over insurance and financial services matters and the joint standing 
committee of the Legislature having jurisdiction over judiciary matters on: 
(1) The performance of the program, including numbers of homeowners who are 
notified of mediation, who attend mediation and who receive legal counseling or 
legal assistance; and 
(2) 
The results of the mediation process, including the number of loans 
restructured, number of principal write-downs, interest rate reductions and 
number of homeowners who default on mortgages within a year after 
restructuring, to the extent the court has available information; 
C. Notwithstanding subsection 10, establish a fee upon a foreclosure filing made on 
or after June 15, 2009 to support mediation services to be paid for by the plaintiff; 
and 
D. Make recommendations for any changes to the program to the Legislature. 
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8. Referral to mortgage assistance programs. At any time during the mediation 
process, the mediator may refer the defendant to housing counseling or mortgage 
assistance programs. 
9. No entry of judgment. For any foreclosure complaint filed after January 1, 2010 
that is scheduled for mediation in accordance with this section, a final judgment may not 
issue until a mediator's report has been completed pursuant to subsection 13. 
10. Application of mediation provisions to ongoing foreclosure proceedings. The 
requirements of this section apply to foreclosures filed after January 1, 2010. The court 
may in its discretion require mediation for owner-occupied residential properties in the 
foreclosure process but not scheduled for sale before January 1, 2010 and owner-
occupied residential properties with no more than 4 units already scheduled for sale. 
H. Parties to mediation. A mediator shall include in the mediation process under 
this section any person the mediator determines is necessary for effective mediation. 
Mediation and appearance in person is mandatory for: 
A. The mortgagee, who has the authority to agree to a proposed settlement, loan 
modification or dismissal of the loan, except that the mortgagee may participate by 
telephone or electronic means as long as that mortgagee is represented with authority 
to agree to a proposed settlement; 
B. The defendant; 
C. Counsel for the plaintiff; and 
D. Counsel for the defendant, if represented. 
12. Good faith effort. Each party and each party's attorney, if any, must be present 
at mediation as required by this section and shall make a good faith effort to mediate all 
issues. If any party or attorney fails to attend or to make a good faith effort to mediate, 
the court may impose appropriate sanctions. 
13. Report. A mediator must complete a report for each mediation conducted under 
this section. The mediator's report must indicate in a manner as determined by the court 
that the parties completed in full the Net Present Value Worksheet in the Federal Deposit 
Insurance Corporation Loan Modification Program Guide. If the report is not the result of 
a settlement or dismissal of the case, the report must include the outcomes of the Net 
Present Value Worksheet. As part of the report, the mediator may notify the court if, in 
the mediator's opinion, either party failed to negotiate in good faith. 
14. Records. The court shall maintain records or other information relating to the 
program as necessary to meet the reporting requirements in subsection 7, paragraph B. 
Sec. 19. 14 MRS A §6322-A is enacted to read: 
§6322-A. Notice to tenants offoreclosure judgment 
The mortgagee shall, after entry of final judgment in favor of the mortgagee, provide 
a copy of the foreclosure judgment to any residential tenant of the premises. Upon request 
from a mortgagee, the mortgagor shall provide the name, address and other contact 
information for any tenant. A tenant who receives written notice under this section is not 
required to file any responsive pleadings and must receive written notice of all 
Page II - 124LR1678(02)-1 
COMMITTEE AMENDMENT 
~{~~~:~~ 
COMMITTEE AMENDMENT "A " 
to H.P. 994, L.D. 1418 
subsequent proceedings including all matters through and including sale of the property. 
The mortgagee shall provide written notice to the tenant if the mortgagee knows or 
should know by exercise of due diligence that the property is occupied as a residential 
rental unit. Notice may be provided to a tenant by first class mail and registered mail at 
the tenant's last known address only after the mortgagee has made 2 good faith efforts to 
provide written notice to the tenant in person. After providing the notice required by this 
section, and upon expiration of the redemption period, the mortgagee may institute an 
action for forcible entry and detainer pursuant to section 6001. This section may not be 
construed to prohibit an action for forcible entry and detainer in accordance with section 
6001 for a reason that is not related to a judicial foreclosure action. 
Sec. 20. 14 MRSA §6323, sub-§3 is enacted to read: 
3. Extension of deadline. Upon a showing of good cause, the court may extend a 
deadline established by this section for the publication of the notice of sale or conducting 
the public sale. 
Sec. 21. 36 MRS A §4641-B, sub-§6 is enacted to read: 
6. 
Transfer of tax on deeds of foreclosure or in lieu of foreclosure. 
Notwithstanding subsection 4, the State Tax Assessor shall monthly pay to the 
Department of Professional and Financial Regulation, Bureau of Consumer Credit 
Protection the revenues derived from the tax imposed on the transfer of real property by 
deeds that convey real property back to a lender holding a bona fide mortgage that is 
genuinely in default, either by deeds from a mortgagor to a mortgagee in lieu of 
foreclosure or by deeds from a mortgagee to itself at a public sale pursuant to Title 14, 
section 6323. 
Sec. 22. 36 MRSA §4641-C, sub-§2, as repealed and replaced by PL 1993, c. 
680, Pt. A, §31, is amended to read: 
2. Mortgage deeds. Mortgage deeds, discharges of mortgage deeds and partial 
releases of mortgage deeds, deeds from a mortgagor to a mortgagee in lieu of foreclosure 
and deeds from a mortgagee to itself at a public sale held pursuant to Title 14, section 
~. For the purposes of this subsection, only the mortgagor is exempt from the tax 
imposed for a deed in lieu of foreclosure. In the event of a deed to a 3rd party at such a 
public sale, the tax imposed upon the grantor by section 4641-A applies only to that 
portion of the proceeds of sale that exceeds the sums required to satisfy in full the claims 
of the mortgagee and all junior claimants originally made parties in interest in the 
proceedings or having subsequently intervened in the proceedings as established by the 
judgment of foreclosure and sale. The tax must be deducted from the excess proceeds~ 
the event of a deed from a mortgagee to itself at a public sale held pursuant to Title 14, 
section 6323, the mortgagee is considered to be both the grantor and grantee for purposes 
of section 4641-A. In the event of a deed in lieu of foreclosure and a deed from a 
mortgagee to itself at a public sale held pursuant to Title 14, section 6323, the tax applies 
to the value of the property as that term is defined in section 4641, subsection 3; 
Sec. 23. 36 MRS A §4641-C, sub-§13, as enacted by PL 1993, c. 398, §4, is 
repealed. 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT "A "to H.P. 994, L.D. 1418 
Sec. 24. Phase-in of foreclosure mediation program. Notwithstanding the 
Maine Revised Statutes, Title 14, section 6321-A, subsection 10, beginning July 1, 2009, 
the Supreme Judicial Court may, in its discretion, implement the foreclosure mediation 
program established pursuant to Title 14, section 6321-A in those judicial districts that 
the court determines that the mediation program is most needed as long as the mediation 
program is available in all judicial districts by January 1, 2010. In any judicial district in 
which the foreclosure mediation program is implemented before January 1, 2010, the 
Supreme Judicial Court shall schedule mediation for those foreclosures filed on or after 
July 1, 2009 in which mediation is required in accordance with Title 14, section 6321-A, 
subsection 6 and may not issue a foreclosure judgment on those foreclosures until a 
mediator's report is received pursuant to Title 14, section 6321-A, subsection 13. Before 
February 15, 2010, the court shall report to the Joint Standing Committee on Insurance 
and Financial Services on the mediation program and recommend whether changes are 
needed. The Joint Standing Committee on Insurance and Financial Services may report 
out a bill to the Second Regular Session of the 124th Legislation based on the 
recommendations. 
Sec. 25. Appropriations and allocations. The following appropriations and 
allocations are made. 
JUDICIAL DEPARTMENT 
Courts - Supreme, Superior and District 0063 
Initiative: Provides funds for the foreclosure mediation program, including funds for one 
Director, foreclosure mediation program position, 3 Assistant Clerk positions and one 
Administrative Assistant position. 
OTHER SPECIAL REVENUE FUNDS 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
JUDICIAL DEPARTMENT 
DEPARTMENT TOTALS 
OTHER SPECIAL REVENUE FUNDS 
DEP ARTMENT TOTAL - ALL FUNDS 
2009-10 
5.000 
$297,231 
$451,870 
$749,101 
2009-10 
$749,101 
$749,101 
2010-11 
5.000 
$319,602 
$425,050 
$744,652 
2010-11 
$744,652 
$744,652 
PROFESSIONAL AND FINANCIAL REGULATION, DEPARTMENT OF 
Bureau of Consumer Credit Protection 0091 
Initiative: Allocates funds for one Office Specialist II position and related costs to 
establish a statewide hotline to facilitate a mortgagor's communication with housing 
COMMITTEE AMENDMENT 
tbj~~,~~ 
COMMITTEE AMENDMENT ,A "to H.P. 994, L.D. 1418 
counselors and an, outreach program in coordination with the Maine State Housing 
Authority including contracting with nonprofit organizations that provide housing 
counseling services and mortgage assistance and to collect and disseminate foreclosure 
information. 
OTHER SPECIAL REVENUE FUNDS 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
PROFESSIONAL AND FINANCIAL 
REGULATION, DEPARTMENT OF 
DEPARTMENT TOTALS 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
SECTION TOTALS 
OTHER SPECIAL REVENUE FUNDS 
SECTION TOTAL - ALL FUNDS 
2009-10 
1.000 
$65,473 
$159,534 
$225,007 
2009-10 
$225,007 
$225,007 
2009-10 
$974,108 
$974,108 
2010-11 
1.000 
$69,405 
$136,631 
$206,036 
2010-11 
$206,036 
$206,036 
2010-11 
$950,688 
$950,688 
SUMMARY 
This amendment retains the emergency preamble and emergency clause, but replaces 
the substantive provisions of the bill. The amendment does the following. 
1. It establishes a court-supervised mediation process in judicial foreclosure 
proceedings on owner-occupied residential properties of one to 4 units. The mediation 
process is modeled after the program used in the State of Connecticut. Beginning July 1, 
2009, the amendment allows the Supreme Judicial Court to implement the mediation 
program first in those judicial districts most affected by foreclosure filings, but requires 
the program to be implemented throughout the State by January 1, 2010. The mediation 
program applies to judicial foreclosure filings made after January 1,2010 except in those 
judicial districts where the mediation program is implemented by the court on July 1, 
2009. The court is authorized to establish fees to support the mediation program. 
2. It makes violation of provisions of the Maine Consumer Credit Code related to 
mortgage lending a violation of the Maine Unfair Trade Practices Act. 
COMMITTEE AMENDMENT 
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COMMIITEE AMENDMENT "A" to H.P. 994, L.D. 1418 
3. It requires that the words "judgment of foreclosure and sale," the street address of 
the real estate involved and the book and page number of the mortgage be on a 
foreclosure judgment when filed in the registry of deeds. 
4. It requires notice to municipalities and owners of mobile home parks after 
foreclosure judgments. 
5.1t requires at least 90 days' notice to tenants in judicial foreclosure proceedings and 
at least 21 days' notice to tenants in nonjudicial foreclosure proceedings. 
6. It describes what a mortgagee must include in a notice of foreclosure to a 
mortgagor. 
7. It requires a mortgagee to provide certain information to the Department of 
Professional and Financial Regulation, Bureau of Consumer Credit Protection about 
foreclosure and requires repOIiing on a quarterly basis to the Legislature related to 
foreclosures. 
8. It requires the Bureau of Consumer Credit Protection to notifY a mortgagor who is 
a paliy to a foreclosure about the mortgagor's rights and available resources as they relate 
to the foreclosure as well as the foreclosure mediation program. It also requires the 
Bureau of Consumer Credit Protection to coordinate an outreach program in consultation 
with the Maine State HOllsing Authority and to establish a statewide hotline to help 
mortgagors communicate with housing counselors certified by the United States 
Department of Housing and Urban Development. 
9. It amends the procedure and notice for foreclosures. 
10. It amends the procedure for commencement of foreclosure by civil action. 
II. It allows a court upon a showing of good cause to extend a deadline for a notice 
of sale or conducting a public sale in a foreclosure action. 
12. It removes the exemption under the real estate transfer tax laws for foreclosure 
sales and deeds in lieu of foreclosure and directs those tax revenues to the Bureau of 
Consumer Credit Protection to fund the agency's additional duties. 
13. It adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/31109 wac:.. 
lLD 1418 
LR 1678(02) 
An Act To Preserve Home Ownership and Stabilize the Economy by Preventing Unnecessary 
Foreclosures 
Fiscal Note for Bill as Amended by Committee Amendment ',q" 
Committee: Insurance and Financial Services 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
2009-10 
$0 
$974,108 . 
$0 
$1,100,000 
2010-11 
$0 
$950,688 
$0 
$1,030,000 
Projections 
2011-12 
$0 
$964,482 . 
$0 
$974,000 
Projections 
2012-13 
$0 
$978,816 
$0 
$929,200 
This bill includes Other Special Revenue Funds allocations of $749,101 in fiscal year 2009-10 and $744,652 in fiscal 
year 2010-11 for the Judicial Branch to establish the Foreclosure Medication Program. The Judicial Branch will also 
experience an annual increase of $750,000 in Other Special Revenue Funds revenue as a result of the increase in the 
foreclosure filing fee. 
The bill's provision to remove the exemption under the Real Estate Transfer tax for foreclosure sales and deeds in lieu 
of foreclosure is estimated to increase General Fund revenue by $350,000 in 2009-10 and by $280,000 in 2010-11. 
This revenue will be transferred to an Other Special Revenue Funds account in the Bureau of Consumer Credit 
Protection in the Department of Professional and Financial Regulation to fund additional duties under the bill. 
Because the change to the Real Estate Transfer tax only repeals certain transactions currently exempted from that tax 
there is no net loss of revenue to the General Fund or the Housing Opportunities for Maine (HOME) Fund 
administered by the Maine State Housing Authority. 
LR1678(02) - Fiscal Note - Page 1 of2 
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The bill provides an allocation of$225,007 in 2009-10 and $206,036 in 2010-11 to the Bureau of Consumer Credit 
Protection in the Department of Professional and Financial Regulation for the creation of one Office Specialist II 
position and related costs of the bureau to establish a statewide hotline to facilitate a mortgagor's communication with 
housing counselors, an outreach program in coordination with the Maine State Housing Authority including 
contracting with nonprofit organizations that provide housing counseling services and mortgage assistance, and to 
collect and disseminate foreclosure information. 
Additional costs to the Maine State Housing Authority associated with consulting with the Bureau of Consumer Credit 
Protection on the outreach program can be absorbed within existing budgeted resources. 
LR1678(02) - Fiscal Note - Page 2 of 2