An Act To
Maine Legislature, Session 125, LD 1338
Committee Amendment CA_A_S311 (Senate)
Amends: 9-A MRSA §1, 9-A MRSA §2, 9-A MRSA §3, 9-A MRSA §6, 9-A MRSA §10, 9-A MRSA §11, 10 MRSA §1141, 30-A MRSA §3962, 30-A MRSA §3964-A, 32 MRSA §6192, 32 MRSA §6198, 33 MRSA §482, 33 MRSA §524, 33 MRSA §525, 35-A MRSA §10155

COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338, Bill, "An Act To 
Amend the Maine Consumer Credit Code To Confonn with Federal Law" 
Amend the bill by striking out all of Part A and insel1ing the following: 
'PART A 
Sec. A-l. 9-A MRSA §1-301, sub-§l1, as amended by PL 1997, c. 122, §1, is 
further amended to read: 
11. 
"Consumer credit sale": 
A. A "consumer credit sale" is a sale of goods, services or an interest in land in 
which: 
t8 ill Credit is granted either pursuant to a credit card other than a lender credit 
card or by a seller who regularly engages as a seller in credit transactions of the 
same kind; 
(it) ill The buyer is a person other than an organization; 
fti:i1 ill The goods, services or interest in land are purchased primarily for a 
personal, family or household purpose; 
(tv) ill Either the debt is payable in installments or a finance charge is made; 
M ill With respect to a sale of goods or services, not including manufactured 
housing or a motor vehicle, the amount financed does not exceed S25,000 
$50,000, consistent with Title X of the federal Dodd-Frank Wall Street Reform 
and Consumer Protection Act, Public Law 111-203; and 
fvB i.Ql With respect to a sale of a motor vehicle as defined in Title 29-A, section 
101, subsection 42, the amount financed does not exceed $35,000 S50,000, 
consistent with Title X of the federal Dodd-Frank Wall Street Refonn and 
Consumer Protection Act, Public Law 111-203. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
The amounts set out in subparagraphs (5) and (6) are automatically adjusted to 
correspond with any inflation adjustment made to the exempt transaction amount 
referenced in the Federal Truth in Lending Act, Section 104, subsection (3) and any 
rules adopted pursuant to that Act. 
Sec. A-2. 9-A MRSA §1-301, sub-§13, as repealed and replaced by PL 1987, c. 
129, §20, is amended to read: 
13. 
A "consumer lease" is a lease of goods: 
A. Wffi.eh That a lessor regularly engaged in the business of leasing makes to a 
person, other than an organization, who takes under the lease primarily for a personal, 
family or household purpose; 
B. In which the amount payable under the lease does not exceed $25,000 $50,000, 
consistent with Title X of the federal Dodd-Frank Wall Street Reform and Consumer 
Protection Act, Public· Law 111-203. The exempt transaction amount in this 
paragraph is automatically adjusted to correspond with any inflation adjustment made 
to the exempt transaction amount referenced in the Federal Truth in Lending Act, 
Section 181, subsection (1) and any rules adopted pursuant to that Act; 
C. Wbieh That is for a term exceeding 4 months; and 
D. WhiefJ: That is not made pursuant to a lender credit card. 
A person is regularly engaged in the business of leasing if he the person enters into 
consumer leases more than 25 times in the preceding calendar year. If a person did 
not meet this numerical test in the preceding calendar year, the numerical standard 
sftal.l. must be applied to the current calendar year. 
Sec. A-3. 9-A MRSA §1-301, sub-§14, ~A, as amended by PL 1997, c. 727, Pt. 
B, §2, is further amended to read: 
A. Except as provided in paragraph B, a "consumer loan" is a loan made by a person 
regularly engaged in the business of making loans in which: 
fB--the (1) The debtor is a person other than an organization; 
(ii) the (2) The debt is incurred primarily for a personal, family or household 
purpose; 
(iii) either (3) Either the debt is payable in installments or a finance charge is 
made; and 
(iv) fer (4) For loans made by: 
(a) A supervised financial organization, either the amount financed does not 
exceed $25,000 $50,000, consistent with Title X of the federal Dodd-Frank 
Wall Street Reform and Consumer Protection Act, Public Law 111-203, or 
the debt is secured by manufactured housing or an interest in land; or 
(b) A supervised lender other than a supervised fmandal organization, either 
the amount financed does not exceed $35,000 $50,000, consistent with Title 
X of the federal Dodd-Frank Wall Street Reform and Consumer Protection 
COMMITTEE AMENDMENT 
c.. 
~ ", 
~,a 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
Act, Public Law 111-203, or the debt is secured by manufactured housing or 
an interest in land. 
The exempt transaction amount in divisions Ca) and (b) are automatically adjusted 
to correspond with any inflation adjustment made to the exempt transaction 
amount referenced in the Federal Truth in Lending Act, Section 104, subsection 
(3) and any rules adopted pursuant to that Act. 
Sec. A-4. 9-A MRSA §1-301, sub-§17, as amended by PL 2005, c. 274, §1, is 
repealed and the following enacted in its place: 
17. 
"Creditor" means a person who both: 
A. 
Regularly extends, whether in connection with loans, sales of property or 
services, or otherwise, consumer credit that is payable by agreement in more than 4 
installments or for which the payment of a finance charge is or may be required; and 
B. Is the person to whom the debt arising from the consumer credit transaction is 
initially payable on the face of the evidence of indebtedness or, if there is no such 
evidence of indebtedness, by agreement; except that, in the case of an open-end credit 
plan involving a credit card, the card issuer and any person who honors the credit 
card and offers a discount that is a finance charge are creditors. 
For the purpose of the requirements imposed under Article 8-A for credit billing pursuant 
to 15 United States Code, Section 1666 et seq. and for open-end consumer credit pursuant 
to 15 United States Code, Section 1637(a)(5), (a)(6), (a)(7), (b)(l), (b)(2), (b)(3), (b)(8) 
and (b)(lO), "creditor" also includes card issuers whether or not the amount due is 
payable by agreement in more than 4 installments or the payment of a finance charge is or 
may be required and the administrator shall by regulation apply these requirements to 
those card issuers, to the extent appropriate, even though the requirements are by their 
terms applicable only to creditors offering open-end credit plans. 
For the purposes of this Title, "creditor" also includes any person who originates 2 or 
more mortgages referred to as high-cost mortgage loans under Article 8-A, section 8-506 
in any 12-month period or any person who originates one or more such mortgage loans 
through a mortgage broker as defined in Article 8-A, section 8-506, subsection 1, 
paragraph J, or a loan broker as defined in Article 10. 
For purposes of this Title, "creditor" also includes a private educational lender as that 
term is defmed in 15 United States Code, Section 1650. 
A person regularly extends consumer credit only if the person extended credit other than 
credit subject to high-cost mortgage loan requirements more than 25 times or more than 5 
times for transactions secured by a dwelling in the preceding calendar year. If a person 
did not meet these numerical standards in the preceding calendar year, the numerical 
standards must be applied to the current calendar year. 
Sec. A-5. 9-A MRSA §2-202, sub-§7, as amended by PL 1999, c. 184, §1, is 
further amended to read: 
7. 
With Unless otherwise provided for in Article 8-A, with respect to consumer 
credit sales made pursuant to a credit card, other than a lender credit card, a creditor may 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
not impose a finance charge if it is in excess of that set forth in the agreement between the 
consumer and the creditor. 
Sec. A-6. 9-A MRSA §2-402, sub-§5, as amended by PL 2005, c. 484, §2, is 
further amended to read: 
5. 
With Unless otherwise provided for in Article 8-A, with respect to loans made 
pursuant to a lender credit card, a creditor may not impose a finance charge if it is in 
excess of that set forth in the agreement between the consumer and the creditor. This 
subsection does not apply to open-end credit plans secured by a consumer's principal 
dwelling or by a 2nd or vacation home of the consumer. 
Sec. A-7. 9-A MRSA §2-501, sub-§3, as amended by PL 1995, c. 84, §6, is 
further amended to read: 
3. 
Chai'ges Unless otherwise provided for in Article 8-A, charges permitted under 
this section and any other charges specifically excluded from the definition of "finance 
charge" in section 1-301, subsection 19, are permissible charges in addition to, and 
excluded from the calculation of, maximum finance charges set forth in Parts 2 and 4. 
Unless otherwise expressly prohibited by this Act, including prohibitions found in Article 
8-A, and except on retail credit card accounts, a creditor may contract for and receive 
additional charges not authorized by this section or by section 1-301, subsection 19, if 
such additional charges, together with all other finance charges applicable to a consumer 
credit transaction, do not exceed the applicable maximum [mance charge under this Act. 
Sec. A-8. 9-A MRSA §2-501, sub-§4, as amended by PL 1995, c. 614, Pt. A, §4, 
is further amended to read: 
4. 
:m Unless otherwise provided for in Article 8-A. in addition to or in lieu of 
interest at a periodic rate or rates as provided in section 2-402, and in addition to any 
other charges permitted under this Act, a supervised financial organization or supervised 
lender may, if the agreement with the consumer governing an open-end credit plan 
involving the use of a lender credit card so provides, charge and collect as an additional 
finance charge or interest, in such manner or form as the plan may provide, one or more 
of the following: 
A. A daily, weekly, monthly, annual or other periodic charge in such amount as the 
agreement may provide for the privileges made available to the consumer under the 
plan; 
B. A transaction charge or charges in such amount or amounts as the agreement may 
provide for each separate purchase or loan under the plan; 
C. A minimum charge for each daily, weekly, monthly, annual or other scheduled 
billing period under the plan during any portion of which there is an outstanding, 
unpaid indebtedness under the plan; 
D. Reasonable fees for services rendered or for reimbursement of expenses incurred 
in good faith by the creditor or its agents in connection with the plan, or other 
reasonable fees incident to the application for and the opening, administration and 
termination of the plan, including, without limitation, commitment, application and 
processing fees, official fees and taxes, and filing fees, but excluding costs of 
collections after default, other than reasonable attorney's fees not in excess of 15% of 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
the unpaid debt incurred in connection with a legal action brought by an attorney who 
is not a salaried employee of the creditor; 
E. A late or delinquency charge upon any outstanding, unpaid installment payments 
or portions of those payments under the plan that are not paid in full within 15 days 
after the scheduled or deferred due date; 
F. Return-payment charges; 
G. Documentary evidence charges; 
H. Stop-payment fees; 
1. Over-the-limit charges; and 
J. 
Automated teller machine charges or similar electronic or interchange fees or 
charges. 
This subsection does not apply to open-end credit plans secured by a consumer's principal 
dwelling or by any 2nd or vacation home of the consumer. 
Sec. A-9. 9-A MRSA §3-204, sub-§2, as amended by PL 1999, c. 150, §2, is 
further amended to read: 
2. 
A Unless otherwise provided for in Article 8-A, a creditor may change the terms 
of an open-end credit account v/hether or Rot the ehaRge is aHthori",ed by prior agreement. 
Except as provided in subsections 3 and 3-A, the creditor shall give to the consumer 
written notice of any change of terms relating to penalties, interest or other charges at 
least 30 days before the effective date of the change. Exeept in the ease of aR \iHsee\ifed 
opeR eRd eredit aeemmt involving the Hse of a eredit eard, a A change of terms that 
would increase any penalty, interest or other charges may not affect outstanding balances 
incurred prior to the effective date of any such change unless: 
A. The creditor includes in the notice of change an offer to finance by a separate loan 
arrangement the outstanding unpaid balance as of the effective date of the change at 
the same rate of interest with the same repayment schedule as applies to that open-
end credit account; 
B. The consumer may accept the offer of a separate loan arrangement with respect to 
the then existing unpaid balance anytime prior to 7 days before the change is to 
become effective; 
C. The creditor has legal authority to make such a loan; and 
D. No minimum finance charge is assessed nor prepayment penalty charged on the 
loan. 
Sec. A-lO. 9-A MRSA §3-3l0, sub-§l, ~, as amended by PL 1999, c. 150, §3, 
is further amended to read: 
D. 
With respect to an open-end credit plan other than one described in paragraph B, 
the information required by 12 Code of Federal Regulations, 22~.~(a)(2) Section 
226.6(a)(1)(ii) must be disclosed before the first transaction under the plan. 
Sec. A-ll. 9-A MRSA §6-104, sub-§l, ~, as amended by PL 1995, c. 309, §8 
and affected by §29, is further amended to read: 
COMMITTEE AMENDMENT 
~ '-6, 
<~.O 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
H. Maintain a public file of all enforcement proceedings instituted and of their 
disposition, including all assurances of voluntary compliance accepted and their 
terms and the pleadings and briefs in all actions in which the administrator is a party; 
aftEl 
Sec. A-12. 9-A MRSA §6-104, sub-§l, ~, as enacted by PL 1995, c. 309, §9 
and affected by §29, is amended to read: 
I. Convene meetings of individuals representing various segments of the public and 
the consumer credit industry to advise and consult with the administrator concerning 
the exercise of powers under this Act and to make recommendations to the 
administrator. 
The administrator may authorize reimbursement of reasonable 
expenses incurred in attending the meetings~; and 
Sec. A-13. 9-A MRSA §6-104, sub-§l, ~J is enacted to read: 
J. To the extent permitted in Title X of the federal Dodd-Frank Wall Street Reform 
and Consumer Protection Act, Public Law 111-203, Section 1042, enforce the 
provisions of Title X of the federal Dodd-Frank Wall Street Reform and Consumer 
Protection Act, Public Law 111-203 or regulations issued under those provisions with 
respect to entities that are state-chartered, incomorated, licensed or otherwise 
authorized to do business under the laws of this State and secure remedies under 
provisions of Title X of the federal Dodd-Frank Wall Street Reform and Consumer 
Protection Act, Public Law 111-203 or remedies otherwise provided under other 
provisions of law with respect to entities that are state-chartered. incomorated, 
licensed or otherwise authorized to do business under the laws of this State. 
Sec. A-14. 9-A MRSA Art. 8, as amended, is repealed. 
Sec. A-IS. 9-A MRSA Art. 8-A is enacted to read: 
ARTICLE8-A 
MAINE TRUTH-IN-LENDING 
§8-501. Short title 
This Article may be known and cited as the "Maine Consumer Credit Code - Truth-
in-Lending. II 
§8-502. Findings and declaration of purpose 
The Legislature finds that economic stabilization would be enhanced and the 
competition among the various financial institutions and other firms engaged in the 
extension of consumer credit would be strengthened by the informed use of credit. The 
informed use of credit results from an awareness of the cost thereof by consumers. It is 
the purpose of this Article to ensure a meaningful disclosure of credit terms so that the 
consumer will be able to compare more readily the various credit terms available to the 
consumer and avoid the uninformed use of credit and to protect the consumer against 
inaccurate and unfair credit billing and credit card practices. 
COMMITTEE AMENDMENT 
N: c.. .. 
~5J "'. 1 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
§8-503. Conformity with federal law 
Unless the context otherwise indicates, any word or phrase that is not defined in this 
Article but that is defined in the Federal Truth in Lending Act, Title I of the federal 
Consumer Credit Protection Act, 15 United States Code, Section 1601 et seq. or its 
implementing regulation, Regulation Z, 12 Code of Federal Regulations, Section 226.1 et 
seq., has the meaning set forth in the Federal Truth in Lending Act and its implementing 
regulations. 
§8-504. Maine Consumer Credit Code - Truth-in-Lending 
1. Compliance with Federal Truth in Lending Act. Notwithstanding any other 
law, a creditor shall comply with the Federal Truth in Lending Act, Title I of the federal 
Consumer Credit Protection Act, 15 United States Code, Section 1601 et seq. and its 
implementing regulations, Regulation Z, 12 Code of Federal Regulations, Section 226.1 
et seq. and Regulation M, 12 Code of Federal Regulations, Section 213.1 et seq., 
including any final regulations issued on or before July 21, 2011. 
2. Rule-making authority. Consistent with the purposes of Title X and Title XIV 
of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act. Public Law 
111-203 and with the purposes set forth in sections 1-102 and 8-502 and notwithstanding 
other law, the administrator may adopt rules substantially similar to or that afford more 
protection for consumers than those codified in 12 Code of Federal Regulations, Part 226 
and 12 Code of Federal Regulations, Part 213. Rules adopted pursuant to this subsection 
are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. In adopting 
rules pursuant to this subsection, the administrator shall specifically consider whether 
there is a substantial impact on consumer protection before adopting rules affecting the 
following provisions of section 8-506: 
A. 
The rate thresholds pertaining to high-cost mortgage loans in section 8-506, 
subsection 1, paragraph H; 
B. 
The prepayment penalties for high-cost mortgage loans in section 8-506, 
subsection 2, paragraph D; 
C. The assignee liability for high-cost mortgage loans in section 8-506, subsection 3; 
D. The ability to repay in section 8-506, subsection 4; 
E. 
The prohibition against flipping and the principles of tangible net benefit in 
section 8-506, subsection 5; or 
F. The enhanced penalties for violations in section 8-506, subsection 6. 
The rules may contain classifications, differentiations or other provisions and may 
provide for adjustments and exceptions for any class of transactions subject to this Title 
that in the judgment of the administrator are necessary or proper to effectuate the 
purposes of this Title, or to prevent circumvention or evasion of or to facilitate 
compliance with, the provisions of this Title. 
3. Compliance with rules prior to effective date. A creditor may comply with any 
rules adopted by the administrator pursuant to subsection 2 prior to the effective date of 
those rules. 
COMMITTEE AMENDMENT 
cS, 
,-> Q'" 
>:">' 
, 
I 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
§8-S0S. Enforcement 
1. Enforcement under Article 6. The administrator shall enforce this Article under 
the provisions of Article 6. When the Superintendent of Financial Institutions is acting as 
administrator, the superintendent may, in addition to the enforcement authority under 
Article 6, use any authority provided in Title 9-B for the supervision of financial 
institutions. 
2. Reimbursement. The administrator may adopt by rule a reimbursement program 
such that creditors subject to an administrative order under section 6-108 may be ordered 
to make whatever adjustments are necessary to ensure that any person will not be 
required to pay a fmance charge in excess of the finance charge actually disclosed or the 
dollar equivalent of the annual percentage rate actually disclosed, whichever is lower. In 
determining any readjustment the administrator shall apply, with respect to the annual 
percentage rate, a tolerance allowed under the Federal Truth in Lending Act, 15 United 
States Code, Section 1607 and its implementing regulation, Regulation Z, 12 Code of 
Federal Regulations, Section 226.1 et seq. and, with respect to the finance charge, a 
corresponding numerical tolerance as generated by the tolerance allowed by the Federal 
Truth in Lending Act and its implementing regulations for the annual percentage rate. 
The administrator may order partial adjustment or partial payments over an extended 
period if the administrator determines that a partial adjustment or making partial 
payments over an extended period is necessary to avoid causing the creditor to become 
undercapitalized pursuant to the Federal Deposit Insurance Act. 
3. Criminal liability for willful and knowing violation. Whoever willfully and 
knowingly gives false or inaccurate information or fails to provide information that the 
person is required to disclose under the provisions of this Article or any regulation issued 
thereunder, uses any chart or table authorized by the administrator under this Article in 
such a manner as to consistently understate the annual percentage rate determined under 
this Article or otherwise fails to comply with any requirement imposed under this Article 
is guilty of a Class D crime. 
4. Penalties inapplicable to governmental agencies. A civil or criminal penalty 
provided under this Article for any violation thereof may not be imposed upon the United 
States or any agency thereof, or upon any state or political subdivision thereof, or any 
agency of any state or political subdivision thereof. 
5. Civil liability. Except as otherwise provided for transactions subject to section 
8-506, subsection 6, any creditor that fails to comply with the requirements imposed 
under this Article with respect to any person is liable to that person as provided for in the 
Federal Consumer Credit Protection Act, 15 United States Code, Section 1640. 
6. Liability of assignees. Except as otherwise provided for transactions subject to 
section 8-506, subsection 3, any civil action for a violation of this Article that may be 
brought against a creditor may be maintained against any assignee of such creditor as 
provided for in the federal Consumer Credit Protection Act, 15 United States Code, 
Section 1641. 
7. Attorney General. The Attorney General has jurisdiction to enforce this Article 
against mortgage brokers as defined in section 8-506, subsection 1, paragraph J and 
supervised lenders that are not supervised financial organizations through their general 
COMMITTEE AMENDMENT 
_ OyS. 
,(." 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
regulatory powers and through civil process. The administrator, through the Attorney 
General, may bring a civil action to restrain any person from violating this Article. 
§8-506. Enhanced restrictions on certain creditors 
In addition to the compliance requirements of section 8-504, subsection 1, unless 
otherwise required by rules adopted pursuant to section 8-504, subsection 2, a creditor 
shall comply with the following enhanced restrictions. 
1. Definitions. The following definitions apply to the enhanced restrictions set forth 
in this section. 
A. "Administrator" has the same meaning as set forth in section 1-301. 
B. "Bona fide discount points" means an amount knowingly paid by a borrower for 
the express purpose of reducing, and that in fact does result in a bona fide reduction 
of, the interest rate applicable to a residential mortgage loan, as long as the 
undiscounted interest rate for the residential mortgage loan does not exceed the 
conventional mortgage rate by more than 2 percentage points for a residential 
mortgage loan secured by a first lien or by 3 112 percentage points for a residential 
mortgage loan secured by a subordinated lien. 
C. 
"Borrower" means any natural person· obligated to repay a loan, including a 
coborrower, cosigner or guarantor. 
D. "Conventional mortgage rate" means the most recently published annual yield on 
conventional mortgages published by the Board of Governors of the Federal Reserve 
System, as published in statistical release H.15 or any superseding publication, as of 
the applicable time set forth in 12 Code of Federal Regulations, Section 
226.32(a)O)(i). 
E. "Conventional prepayment penalty" means any prepayment penalty or fee that 
may be collected or charged in a residential mortgage loan and that is authorized by 
law other than this section, as long as the residential mortgage loan does not have an 
annual percentage rate that exceeds the conventional mortgage rate by more than 2 
percentage points and does not permit any prepayment fees or penalties that exceed 
2% of the amount prepaid. 
F. "Creditor" has the same meaning as set forth in section 1-301, subsection 17. For 
purposes of this section, "creditor" also includes an entity dermed as a lender as set 
forth in 24 Code of Federal Regulations, Section 3500.2, including a mortgage 
broker. 
G. "Excluded points and fees" means, in connection with a residential mortgage loan, 
all bona fide fees paid to a federal or state government agency that insures payment 
of some portion of a residential mortgage loan plus an amount not to exceed 2% of 
the total loan amount attributable to bona fide discount points or a conventional 
prepayment penalty. 
H. "High-cost mortgage loan" means a residential mortgage loan in which the terms 
of the loan meet or exceed one or more of the following thresholds: 
(1) Rate threshold, which, for a residential mortgage loan, is the point at which 
the annual percentage rate equals or exceeds the rate set forth in 12 Code of 
COMMITTEE AMENDMENT 
~ '0. 
"' G· 
\"",' 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
Federal Regulations, Section 226.32(a)(1)(i) without regard to whether the 
residential mortgage loan may be considered a "residential mortgage transaction" 
or an extension of "open-end credit" as those terms are set forth in 12 Code of 
Federal Regulations, Section 226.2; or 
(2) The total points and fees threshold, which is: 
(a) For loans in which the total loan amount is $40,000 or more, the point at 
which the total points and fees payable in connection with the residential 
mortgage loan less any excluded points and fees exceed 5% of the total loan 
amount; and 
(b) For loans in which the total loan amount is less than $40,000, the point at 
which the total points and fees payable in connection with the residential 
mortgage loan less any excluded points and fees exceed 6% of the total loan 
amount. 
1. "Higher-priced mortgage loan" has the same meaning as set forth in the Federal 
Truth in Lending Act and its implementing regulation, Regulation Z, 12 Code of 
Federal Regulations, Section 226.35(a). "Higher-priced mortgage loan" also includes 
a residential mortgage loan that is a nontraditional mortgage as described in the 
"Interagency Guidance on Nontraditional Mortgage Product Risks" issued September 
29, 2006 and published in 71 Federal Register, 58609 on October 4, 2006 and as 
updated from time to time, except that "higher-priced mortgage loan" does not 
include a mortgage that does not allow a borrower to defer repayment of principal or 
interest. 
J. 
"Mortgage broker" has the same meaning as set forth in 24 Code of Federal 
Regulations, Section 3500.2, except as otherwise provided in this Article. 
K. "Points and fees" has the same meaning as set forth in 12 Code of Federal 
Regulations, Section 226.32(b)(1). 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 
table-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. 
L. "Residential mortgage loan" means an extension of credit, including an open-end 
credit plan, in which: 
COMMITTEE AMENDMENT 
I\~S· 
~,v 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
(1) The loan does not exceed the maximum original principal obligation as set 
forth in and from time to time adjusted according to the provisions of 12 United 
States Code, Section 1454(a)(2); 
(2) The loan is considered a federally related mortgage loan as set forth in 24 
Code of Federal Regulations, Section 3500.2; 
(3) The loan is not a reverse mortgage transaction or a loan made primarily for 
business, agricultural or commercial purposes; 
(4) The loan is not a construction loan; and 
(5) The loan is secured by the borrower's principal dwelling. 
M. "Servicing" has the same meaning as set forth in 24 Code of Federal Regulations, 
Section 3500.2 and includes any other activities or responsibilities undertaken in 
connection with a residential mortgage loan by a person who acts as a servicer with 
respect to that residential mortgage loan, including collection and default 
management functions. 
N. "Total loan amount" means the principal of a loan minus those points and fees 
that are included in the principal amount of the loan. For open-end loans, the total 
loan amount must be calculated using the total line of credit allowed under the 
residential mortgage loan at closing. 
2. High-cost mortgage loans; restrictions. A high-cost mortgage loan is subject to 
the provisions applying to certain closed-end home mortgages covered by Regulation Z, 
Code of Federal Regulations, Section 226.32 and the following restrictions. 
A. In connection with a high-cost mortgage loan, a creditor may not directly or 
indirectly finance any points or fees. 
B. In addition to the limitation on balloon payments found in Regulation Z, 12 Code 
of Federal Regulations, Section 226.32, a high-cost mortgage loan may not contain a 
scheduled payment that is more than twice as large as the average of earlier 
scheduled payments. This paragraph does not apply when the payment schedule is 
adjusted to the seasonal or irregular income of the borrower. 
C. 
A creditor may not make a high-cost mortgage loan without first receiving 
certification from a counselor with a 3rd-party, nonprofit organization approved by 
the United States Department of Housing and Urban Development. a housing 
financing agency of this State or the Department of Professional and Financial 
Regulation, Bureau of Consumer Credit Protection that the borrower has received 
counseling on the advisability of the loan transaction. 
D. A prepayment fee or penalty may not be included in the loan documents or 
charged under the terms of a high-cost mortgage loan. 
3. High-cost mortgage loans; assignee liability. The following provisions apply to 
a claim made by a borrower against a purchaser or assignee of a high-cost mortgage loan. 
A. Any person who purchases or is otherwise assigned a high-cost mortgage loan is 
subject to all affirmative claims and any defenses with respect to the loan that the 
borrower may assert against a creditor of the loan, except that this paragraph does not 
COMMITTEE AMENDMENT 
~, co· 
~,G, 
, 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
apply if the purchaser or assignee demonstrates by a preponderance of the evidence 
that it: 
(1) Has in place, at the time of the purchase or assignment of the subject loan, 
policies that expressly prohibit the purchaser or assignee's purchase or acceptance 
of assignment of any high-cost mortgage loan; 
(2) 
Requires by contract that a seller or assignor of residential high-cost 
mortgage loans to the purchaser or assignee represent and warrant to the 
purchaser or assignee that neither the seller or assignor will sell or assign any 
high-cost mortgage loans to the purchaser or assignee, nor that the seller or 
assignor is a beneficiary of a representation and warranty from a previous seller 
or assignor to that effect; and 
(3) Exercises reasonable due diligence, at the time of purchase or assignment of 
residential mortgage loans or within a reasonable period of time after the 
purchase or assignment of such residential mortgage loans, intended by the 
purchaser or assignee to prevent the purchaser or assignee from purchasing or 
taking assignment of any high-cost mortgage loan. For purposes of this 
subparagraph, reasonable due diligence must provide for sampling and may not 
require loan-by-Ioan review. 
B. Notwithstanding paragraph A, liability pursuant to this subsection may not accrue 
to a purchaser or assignee of a high-cost mortgage loan as a result of an alleged 
violation by a creditor of subsection 5. 
4. Ability to repay. A creditor may not extend a high-cost mortgage loan or a 
higher-priced mortgage loan to a consumer based on the value of the consumer's 
collateral without regard to the consumer's repayment ability as of consummation, 
including the consumer's current and reasonably expected income, employment, assets 
other than the collateral, credit history, debt-to-income ratio, current obligations and 
mortgage-related obligations. 
A. 
For purposes of this subsection, mortgage-related obligations are expected 
property taxes, premiums for mortgage-related insurance required by the creditor, 
such as insurance against loss of or damage to property or against liability arising out 
of the ownership or use of the property or insurance protecting the creditor against 
the consumer's default or other credit loss, and similar expenses. 
B. Under this subsection, a creditor must verify the consumer's repayment ability as 
follows. 
(1) A creditor must verify amounts of income or assets that it relies on to 
determine repayment ability, including expected income or assets, by the 
consumer's federal Internal Revenue Service Form W -2, tax returns, payroll 
receipts, financial institution records or other 3rd-party documents that provide 
reasonably reliable evidence of the consumer's income or assets. For the purposes 
of this subparagraph, "reasonably reliable evidence of the consumer's income or 
assets" includes, but is not limited to, statements from investment advisors, 
broker-dealers and others in a fiduciary relationship with the consumer as long as 
the statements reflect the consumer's actual income and not estimated, projected 
COMMITTEE AMENDMENT 
r-
y,.,Qt ~, 1 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
or anticipated income or a range of earnings for a consumer's type or class of 
employment. 
(2) A creditor must verify the consumer's current obligations. 
C. A creditor is presumed to have complied with this subsection with respect to a 
transaction if the creditor: 
. 
(1) Verifies the consumer's repayment ability as provided in paragraph B; 
(2) Determines the consumer's repayment ability using the largest payment of 
principal and interest scheduled in the first 7 years following consummation and 
taking into account current obligations and mortgage-related obligations; and 
(3) Assesses the consumer's repayment ability taking into account at least one of 
the following: 
(a) The ratio of total debt obligations to income; and 
(b) The income the consumer will have after paying debt obligations. 
D. Notwithstanding paragraph C, no presumption of compliance is available for a 
transaction for which: 
(1) The regular periodic payments for the first 7 years would cause the principal 
balance to increase; or 
(2) The tenn of the loan is less than 7 years and the regular periodic payments 
when aggregated do not fully amortize the outstanding principal balance. 
E. This subsection does not apply to a temporary or so-called "bridge" loan with a 
term of 12 months or less, such as a loan to purchase a new dwelling when the 
consumer plans to sell a current dwelling within 12 months. 
5. Flippin!!. A creditor or a mortgage broker may not knowingly or intentionally 
engage in the act or practice of flipping a residential mortgage loan when making a 
high-cost mortgage loan or higher-priced mortgage loan. The administrator may adopt 
rules defining with reasonable specificity the requirements for compliance with this 
subsection. Rules adopted pursuant to this subsection are routine technical rules pursuant 
to Title 5, chapter 375, subchapter 2-A. For the purposes of this subsection, "flipping a 
residential mortgage loan" means the making of a residential mortgage loan to a borrower 
that refinances an existing residential mortgage loan when the new loan does not have 
reasonable, tangible net benefit to the borrower considering all the circumstances, 
including, but not limited to, the terms of both the new and refinanced loans, the cost of 
the new loan and the borrower's circumstances. 
6. 
Special liability. This subsection applies to any violation of this section in 
connection with the origination, brokering or servicing of a residential mortgage loan. 
This subsection does not apply to a purchaser or assignee of a residential mortgage loan 
except as permitted in subsection 3. 
A. 
Any person who has been found in violation of this section with regard to 
residential mortgage loans may be liable to the borrower for the following: 
COMMITTEE AMENDMENT 
otf~' 
~, 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
0) 
Actual damages, including consequential and incidental damages. The 
borrower may not be required to demonstrate reliance in order to receive actual 
damages; 
(2) Punitive damages for violations of subsections 2 and 5, when the violation 
was malicious or reckless; 
(3) Costs, including reasonable attorney's fees; and 
(4) Statutory damages as follows: 
(a) For violations described in subsection 2, statutory damages equal to 2 
times the finance charge paid under the loan and forfeiture of the remaining 
interest under the loan: and 
(b) For any other violations of this section, statutory damages in the amount 
of $5,000 per violation. 
B. A borrower may be granted injunctive, declaratory and other equitable relief that 
the court determines appropriate in an action to enforce compliance with this section. 
C. 
The right of rescission granted under 15 United States Code, Chapter 41, 
Subchapter I, Part A for a violation of that law is available to a borrower acting only 
in . an individual capacity by way of recoupment as a defense against a party 
foreclosing on a residential mortgage loan at any time during the term of the loan. 
Any recoupment claim asserted pursuant to this provision is limited to amounts 
required to reduce or extinguish the borrower's liability under the residential 
mortgage loan plus amounts required to recover costs, including reasonable attorney's 
fees. This paragraph may not be construed to limit recoupment rights available to the 
borrower under any other law. 
D. The remedies provided in this subsection are not intended to be the exclusive 
remedies available to a borrower, nor must the borrower exhaust any administrative 
remedies provided under this subsection or any other applicable law before 
proceeding under this subsection. 
E. Any person who knowingly violates a provision of this section is guiltv of a Class 
E crime. 
F. A creditor in a residential mortgage loan who, when acting in good faith, fails to 
comply with any provision of this section related to residential mortgage loans is 
deemed not to have violated this section if the creditor establishes that either: 
(1) Within 30 days of the loan closing and prior to receiving any notice of the 
compliance failure, the creditor has made appropriate restitution to the borrower 
and appropriate adjustments have been made to the loan; or 
(2) Within 60 days of the loan closing and prior to receiving any notice of the 
compliance failure, when the compliance failure was not intentional and resulted 
from a bona fide error notwithstanding the maintenance of procedures reasonably 
adopted to avoid such errors, the borrower is notified of the compliance failure, 
appropriate restitution is made to the borrower and appropriate adjustments are 
made to the loan. Examples of a bona fide error include clerical, calculation, 
COMMITTEE AMENDMENT 
,.; C. 
0" ,,' 
~,' 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
computer malfunction and programming and printing errors. An error of legal 
judgment with respect to a person's obligations under this section is not a bona 
fide error. 
G. The remedies provided in this subsection are cumulative. 
H. 
Notwithstanding any other provision of law, a residential mortgage loan 
agreement may not include any provision that waives any borrower's remedies 
available at law or equity, whether acting individually or on behalf of others similarly 
situated, or the borrower's rights to civil discovery or appeal. Any such provision is 
unenforceable and void as a matter oflaw. 
I. Without regard to whether a borrower is acting individually or on behalf of others 
similarly situated, any provision of a residential mortgage loan agreement that allows 
a person to require a borrower to assert any claim or defense in a forum that is less 
convenient, more costly or more dilatory for the resolution of a dispute than a judicial 
forum established in this State where the borrower may otherwise properly bring a 
claim or defense or that limits in any way any claim or defense the borrower may 
have is unconscionable and void as a matter of law. 
J. It is a violation of this section for any person to attempt in bad faith to avoid the 
application of this section by dividing any loan transaction into separate parts or 
structuring a residential mortgage loan transaction as an open-end loan for the 
purpose of evading the provisions of this section when the loan would have been a 
high-cost mortgage loan if the loan had been structured as a closed-end loan or by 
engaging in any other subterfuge with the intent of evading any provision of this 
section. 
7. 
Exemption for supervised financial organizations and the Maine State 
Housing Authority. This section does not apply to any supervised [mancial organization 
as defined in section 1-301. subsection 38-A or to the Maine State Housing Authority. 
§S-507. Exemption from the Federal Truth in Lending Act 
1. Preservation of federal exemption. As required by the Federal Truth in Lending 
Act, 15 United States Code, Section 1633 and its implementing regulation, Regulation Z, 
Code of Federal Regulations, Section 226.29, the administrator may take any action 
necessary to apply for or to preserve a determination by the Federal Reserve Board or its 
successor agency that under the laws of this State any class of credit transactions within 
this State is subject to requirements substantially similar to federal requirements and that 
there are adequate provisions for enforcement of such requirements. 
2. Application. This Article does not apply to any class of credit transactions within 
this State that is subject to the requirements of the Federal Truth in Lending Act, Title I of 
the federal Consumer Credit Protection Act unless any such class of transactions has first 
been exempted by a regulation of the Board of Governors of the Federal Reserve Board 
and that exemption remains in effect. 
§S-50S. Authority of administrator 
The administrator. by rule or order, shall prohibit acts or practices in connection with: 
COMMITTEE AMENDMENT 
\~,or $, 1 
COMMITIEE AMENDMENT "A" to S.P. 415, L.D. 1338 
1. Unfair or deceptive mortgage loans. The making of a residential mortgage loan 
that the administrator finds unfair, deceptive or designed to evade the provisions of 
section 8-506; and 
2. 
Refinancing; abusive lending practices. 
The refinancing of a residential 
mortgage loan that the administrator finds is associated with abusive lending practices or 
that is otherwise not in the interest of the borrowing pUblic. 
Rules adopted pursuant to this section are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
§8-509. Credit card and debit card surcharge prohibition 
1. Surcharge prohibited. A seller in a sales transaction may not impose a surcharge 
on a cardholder who elects to use a credit card or dehit card in lieu of payment by cash, 
check or similar means. For purposes of this section, "surcharge" means any means of 
increasing the regular price to a cardholder that is not imposed on a customer paying by 
cash, check or similar means. A discount or reduction from the regular price is not a 
surcharge. 
2. Surcharge permitted for governmental entity. Notwithstanding subsection 1, a 
governmental entity may impose a surcharge for payments made with a credit card or 
debit card for taxes, fines, charges, utility fees, regulatory fees, license or permit fees or 
the provision of a specific service provided by that governmental entity if the surcharge: 
A. Is disclosed clearly to the consumer prior to payment: and 
B. Does not exceed the costs associated with providing the credit card or debit card 
service that are directly incurred by the governmental entity or assessed by an 
authorized 3rd-party payment service provider for a credit card or debit card 
transaction. If there is not a cost assessed by an authorized 3rd-party payment service 
provider for a debit card transaction, the governmental entity may not impose a 
surcharge associated with a debit card transaction. 
A governmental entity shall disclose to the consumer that the surcharge may be avoided if 
the consumer makes payments by cash, check or other means not a credit card or debit 
card. A governmental entity is not subject to any liability to the issuer of a credit card or 
an authorized 3rd-party payment service provider for nonpayment of credit card charges 
by the consumer. As used in this subsection, "governmental entity" includes, but is not 
limited to, a county established or governed by Title 30-A, Part 1, a municipality as 
defined in Title 30-A, section 2001, subsection 8, a Quasi-municipal corporation as 
defined in Title 30-A, section 2604, subsection 3, the Judicial Department as described in 
Title 4, the University of Maine System, the Maine Community College System and the 
Maine Maritime Academy. 
§8-510. Disclosure of lists of the names, addresses and account numbers of credit 
card holders 
1. Disclosure prohibited. Except as provided in subsection 2, it is unlawful for a 
person, business, corporation, partnership, agency, financial institution, credit card 
registration service or other entity to rent, sell, exchange or otherwise disclose or make 
available to another person or entity a list containing the names, addresses and account 
COMMITTEE AMENDMENT 
~~" 
',j C'i 
,--
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. l338 
numbers of credit card holders without the express, written permission of the credit card 
holders. 
2. Exceptions. The following disclosures of lists containing the names, addresses 
and account numbers of credit card holders are not prohibited: 
A. Disclosure to or from a consumer reporting agency, as defined in Title 10, section 
1312, subsection 4, as long as the transfer is for purposes of compliance with and in a 
manner consistent with the terms of the Fair Credit Reporting Act: 
B. 
Disclosure between a parent corporation and a subsidiary or affiliate of that 
corporation or between subsidiaries or affiliates of a parent corporation; 
C. Disclosure in connection with the sale or pledge, or negotiation of the sale or 
pledge, of any portion of a business or the assets of a business, as long as the party to 
whom disclosure is made maintains the confidentiality of the information disclosed; 
D. 
Disclosure in connection with authorization, processing, billing, collection, 
charge-back, fraud prevention or credit card recovery; and 
E. Disclosure pursuant to state or federal law or at the direction of a governmental 
entity pursuant to law or in response to a court order. 
3. 
Violation. 
A violation of this section constitutes a violation of the Maine 
Consumer Credit Code and the Maine Unfair Trade Practices Act. 
§8-511. Recurring charges to credit card or charge card accounts 
If a sale of goods, services or insurance is charged to a credit card or charge card 
account on an annual basis without substantially contemporaneous authorizations by the 
consumer, the seller shall inform the consumer of the voluntary nature of the charge to 
the credit card or charge card account and of the steps necessary to prevent this charge at 
least 30 days prior to the annual charge. The card issuer may provide the notice on behalf 
of the seller. This section does not apply to insurance subject to notice and cancellation 
rights pursuant to section 4-204. 
Sec. A-16. 9-A MRSA §lO-307-A is enacted to read: 
§10-307-A. Application of truth in lending limits 
A loan broker and its mortgage loan originators shall comply with the provisions of 
the Federal Truth in Lending provisions of Article 8-A and any rules adopted in 
accordance with that Article. 
Sec. A-17. Application. This Part applies to any application for consumer credit, 
including a residential mortgage loan, received by a creditor on or after the effective date 
of this Part.' 
Amend the bill in Part B by inserting after section 1 the following: 
'Sec. B-2. 9-A MRSA §1-301, sub-§24-B is enacted to read: 
24-B. "Mortgage loan originator" means an individual who for compensation or gain, 
or in the expectation of compensation or gain, takes a residential mortgage loan 
COMMITTEE AMENDMENT 
~~. 
~.fJ . 1 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
application or offers or negotiates terms of a residential mortgage loan. "Mortgage loan 
originator" does not include: 
A. 
An individual engaged solely as a loan processor or underwriter except as 
otherwise provided in section 13-103, subsection 3, paragraph A; 
B. A person or entity that only performs real estate brokerage activities and is 
licensed or registered in accordance with the laws of this State, unless the person or 
entity is compensated by a lender, a mortgage broker or other mortgage loan 
originator or by any agent of such lender, mortgage broker or other mortgage loan 
originator: or 
C. A person or entity solely involved in extensions of credit relating to time-share 
plans, as that term is defined in 11 United States Code, Section 101(53D). 
For the purposes of Articles 2, 3, 6, 9 and 10, mortgage loan originator does not include a 
registered mortgage loan originator as defined in section 13-102, subsection 12. 
Sec. B-3. 9-A MRSA §2-302, sub-§l, as amended by PL 1989, c. 581, §4, is 
further amended to read: 
1. 
The administrator shall receive and act on all applications for licenses to make 
supervised loans under this Act. Applications sfl.aI.l must be filed in the manner prescribed 
by the administrator and sfl.aI.l must contain the information the administrator requires by 
rule to make an evaluation of the financial responsibility, character and fitness of the 
applicant. 
.ffiitial Except as set forth by regulation governing participation in the 
nationwide mortgage licensing system and registry for mortgage lender licensing, initial 
applications for a license sfl.aI.l must be accompanied by a $500 fee. Refle"Nal and renewal 
applications sfl.aI.l must include a $200 fee. Lieeflses shall be Except as set forth by 
regulation governing participation in the nationwide mortgage licensing system and 
registry for mortgage lender licensing, licenses are granted for a 2-year period and sfl.aI.l 
must expire on September 30th. 
Initial and renewal applications by nonprofit 
organizations exempt from taxation under the United States Internal Revenue Code, 
Section 501(c)(3), and engaged in the fmancing of housing for low-income people under 
a program designed specifically for that purpose sfl.aI.l must include a fee of $20.' 
Amend the bill in Part B by striking out section 13 and inserting the following: 
'Sec. B-l3. 9-A MRSA §10-201, as amended by PL 2009, c. 243, §3, is further 
amended to read: 
§10-201. Licensing and biennial relicensing 
A Except as set forth by regulation governing partiCIpation in the nationwide 
mortgage licensing system and registry for mortgage lender licensing, a person desiring 
to engage or continue in business in this State as a loan broker shall apply to the 
administrator for a license under this article on or before January 31st of each even-
numbered year. The application must be in a form prescribed by the adlninistrator. The 
administrator may refuse the application if it contains erroneous or incomplete 
information. At Hie time of aflfllieatioa aild Ofl ail OHgOiflg basis Eittriflg the teI'l'R of an;' 
such liceflse, Hie af!fllicaflt shaH af!flly to the admiflistrater fer registratiofl ef all lean 
officers eHlflleyed or retained by the apfllicailt. An af!fllicatiofl fer registratiefl as a IOafl 
COMMITTEE AMENDMENT 
c 
",,(,c :';r 
,;:.,,:"-!' 
.~ , 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
offieer must be filed in a HlaBfler preseri-Bed by the administrator aHd inelude the name, 
address and '.",ork loeation of the loan offieer aad sueh additioaal iaform.atioa as is 
reasoaably reE:):Uested by the admiaistrator. :Ali applieaat's registratioa of a IOaH offieer 
within 90 days of the date that registration wollid otherwise be reEtHired does Ret 
eoastitute a violatioa of this seetioa. 
A license may not be issued unless the 
administrator, upon investigation, finds that the financial responsibility, character and 
fitness of the applicant and, where applicable, its partners, officers or directors and the 
character and fitness of its loan offieers mortgage loan originators, warrant belief that the 
business will be operated honestly and fairly within the purposes of this Title. The 
administrator may adopt rules requiring that applicants, applicants' partners, officers or 
directors and employees of applicants satisfy initial and continuing educational 
requirements. 
The reasonable costs of meeting such educational requirements are 
assessed to applicants. Providers of initial and continuing education courses of study 
shall submit each course to the administrator for approval, and each submission must be 
accompanied by a $100 fee. Rules adopted pursuant to this section are routine technical 
rules pursuant to Title 5, chapter 375, subchapter 2-A. 
+he Except as set forth by regulation governing participation in the nationwide 
mortgage licensing system and registry for mortgage lender licensing, the initial 
application for a license as a loan broker must include a fee of $600~ and the biennial 
relicensing application must include a fee of $300. 
Initial applieants and biennial 
relieensiag appliearns Inust pay an additional fee of I:1f> to $20 for registration of each loan 
offieer, up to a maximum of $400 in total. Notwithstanding other remedies available 
under this Title, applications received after the due date are subject to an additional fee of 
$100. 
A licensee may conduct business only at or from a place of business for which the 
licensee holds a license and not under any other name than that on the license. A Except 
as set forth by regulation governing participation in the nationwide mortgage licensing 
system and registry for mortgage lender licensing, a license fee of $300 is imposed for a 
license issued for a place of business other than that of the first licensed location of the 
licensee~ and a biennial relicensing application for each such branch location must 
include a fee of $150. 
A licensed loan broker may conduct business only through a loan offieer mortgage 
loan originator who possesses a current, valid registration license. A loan offieer must be 
registered at tke 10aR offieer's fJriaeifJal lieensed viork loeatioa aRd may thea work from 
any licensed location of the loaa brok:er. 
The registration of a loan officer is valid only 
vAlen that fJersoa is eHlfJloyed or retained and sUfJef¥ised by a licensed loan brok:er. 
'Vken a loan officer oeases to be emfJloyed by a licensed loan broker, the loan broker 
skall fJromfJtly notify the a€lministrator in 'Nriting. ' 
Amend the bill by inserting after Part B the following: 
'PARTe 
Sec. C-l. 
Evaluation of ways to streamline the State's foreclosure 
prevention outreach and housing counseling program. 
The Department of 
Professional and Financial Regulation, Bureau of Consumer Credit Protection, referred to 
COMMITTEE AMENDMENT 
~~, 
,it., Q. 
COMMITTEE AMENDMENT" A" to S.P.41S, L.D.1338 
\. 
I 
in this Part as "the bureau," shall facilitate meetings and other communications among 
interested parties to evaluate and determine the ways in which the State's foreclosure 
prevention outreach and housing counseling program may be streamlined and made more 
efficient in accordance with this section. 
1. The bureau shall invite participation from representatives of the following groups: 
A. State-chartered banks; 
B. State-chartered credit unions; 
C. Nondepository licensed mortgage lenders; 
D. Federally chartered financial institutions; 
E. Loan servicers; 
F. Attorneys who represent lenders; 
G. Attorneys who represent homeowners; 
H. Nonprofit housing counselors; 
I. Homeowners; 
J. The Department of Professional and Financial Regulation, Bureau of Financial 
Institutions; and 
K. 
Two members of the Joint Standing Committee on Insurance and Financial 
Services, representing each of the 2 parties holding the largest number of seats in the 
Legislature. 
The bureau may invite additional interested parties to attend and participate. 
2. The bureau shall ensure that the interested parties evaluate, at a minimum, the 
following issues: 
A. Whether the mailing of informational packages from the State should be delayed, 
from the current requirement for mailing simultaneously with the notice of right to 
cure default pursuant to the Maine Revised Statutes, Title 14, section 6111, to a later 
time, such as after the homeowner is 60 days in default; 
B. 
Whether the results of housing counselor efforts should be reported in a 
standardized format to make evaluation of those results more efficient; 
C. Whether the informational package mailing process under paragraph A could be 
carried out by the lenders rather than by the bureau; 
D. Whether lenders and servicers should be required to make available to regulators, 
counselors or consumers the names and contact information for individuals within the 
lenders' and servicers' companies who are authorized to approve loan modifications, 
short sales or other alternatives to foreclosure; 
E. Whether joint obligors on a mortgage can be provided with a single informational 
packet under paragraph A, rather than the current requirement that every mortgagor 
receive that information; 
F. Whether the current composition of the informational package under paragraph A 
can be improved to be clearer, more understandable to and more useable by 
homeowners; 
COMMITTEE AMENDMENT 
<'., 
o\: ",' 
'\0'" 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
G. How the outreach and counseling process can best be integrated, when necessary, 
into the judicial system's foreclosure mediation program pursuant to Title 14, section 
6321-A; and 
H. Any other issues, as appropriate. 
3. 
The bureau shall provide notice of meetings to all interested parties and to 
members and staff of the Joint Standing Committee on Insurance and Financial Services. 
4. 
The bureau shall report the findings of the interested parties, including any 
recommendations and suggested legislation, to the Joint Standing Committee on 
Insurance and Financial Services by December 7, 2011. The committee may submit a bill 
related to the suggested legislation to the Second Regular Session of the 125th 
Legislature. 
PARTD 
Sec. D-l. 9-A MRSA §1-202, sub-§8, ~A, as amended by PL 2007, c. 471, §1 
and affected by § 18, 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 seotion 
g 103, subseotion 1 A, paf'agraph Y the Federal Truth in Lending Act, 15 United 
States Code, Section 1601 et seq., 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. D-2. 9-A MRSA §1-202, sub-§lO, as enacted by PL 2005, c. 55, §3, is 
amended to read: 
10. 
A no-interest loan or credit sale by a nonprofit organization that assists in 
building or renovating housing for those in need. The exclusion in this subsection does 
not apply to Article 6, Part 1; section 6-201; section 6-202; section 6-203, subsection 1; 
section 6-204; or Article 8 8-A. 
Sec. D-3. 9-A MRSA §1-202, last ~, as amended by PL 1987, c. 396, §3, is 
further amended to read: 
COMMITTEE AMENDMENT 
GSo 
<(') 0\ 
'(--. 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
The exclusions set forth in subsection 1 relating to extensions of credit to consumers 
by governments or governmental agencies, instrumentalities or organizations, and in 
subsections 2, 4, 5, 7 and 8, shall do not apply to the Maine Consumer Credit Code, 
Truth-in-lending, Article ¥III 8-A. 
Sec. D-4. 9-A MRSA §1-301, sub-§5, as repealed and replaced by PL 1981, c. 
243, §3, is amended to read: 
5. 
"Amount financed" means the amount of credit of which the consumer has 
actual use and shall be !§ computed pursuant to section 2-501 and seetiefl 820s, 
subseetiefl 1, paragFaflH "8 the Federal Truth in Lending Act, 15 United States Code, 
Section 1601 et seq. 
Sec. D-S. 9-A MRSA §1-301, sub-§§6-B and 6-C, as enacted by PL 1987, c. 
129, § 16, are amended to read: 
6-B. 
"Cardholder" means the same as defined in seetiefl g 103 the Federal Truth in 
Lending Act, 15 United States Code, Section 1601 et seq. 
6-C. 
"Card issuer" means the same as defined in seetiefl g 103 the Federal Truth in 
Lending Act, 15 United States Code, Section 1601 et seq. 
Sec. D-6. 9-A MRSA §1-301, sub-§19, ,A, as repealed and replaced by PL 
1987, c. 129, §24, is amended to read: 
A. Except for charges specifically excluded by paragraph B, the term includes: 
(1) Interest, time price differential and any amount payable under an add-on or 
discount system of additional charges; 
(2) 
Service, transaction, activity and carrying charges and early withdrawal 
penalties on time deposit accounts, including any charge imposed on a checking 
or other deposit account to the extent that the charge exceeds the charge for a 
similar account without a credit feature; 
(3) Points, loan fees, assumption fees, finder's fees and similar charges; 
(4) Appraisal, investigation and credit report fees; 
(5) Premiums or other charges for any guarantee or insurance protecting the 
creditor against the consumer's default or other credit loss; 
(6) Charges imposed on a creditor by another person for purchasing or accepting 
a consumer's obligation, if the consumer is required to pay the charges in cash, as 
an addition to the obligation or as a deduction from the proceeds of the 
obligation; 
(7) Premiums or other charges for credit life, accident, health or loss-of-income 
insurance or insurance against loss of or damage to property or against liability 
arising out of the ownership or use of property, written in connection with a 
credit transaction, unless the applicable requirements of section 2-501 and seetiofl 
g 105, subseetiofls 2 afld 3 Article 8-A are met; and 
COMMITTEE AMENDMENT 
'l't$. 
\~"'" 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
(8) Discounts for the purpose of inducing payment by a means other than the use 
of credit. 
Sec. D-7. 9-A MRSA §1-301, sub-§41, as amended by PL 1981, c. 698, §18, is 
further amended to read: 
41. 
"Provisions on disclosure" includes Article S 8-A, regulations issued rules 
adopted pursuant to that Article, and the Federal Truth in Lending Act, as applicable. 
Sec. D-S. 9-A MRSA §2-307, sub-§2, as amended by PL 1997, c. 727, Pt. B, §6, 
is further amended to read: 
2. 
With respect to a supervised loan in which the amount financed is $2,800 or 
less, a lender may not take a security interest in the principal residence of the consumer. 
This subsection does not apply when the lender holds a first mortgage on the residence at 
the time the loan is made or when the loan is made pursuant to an open-end credit plan 
involving a commitment to advance amounts in excess of $2,800. Notwithstanding Title 
14, He f! judgment of foreclosure of a mortgage upon the principal residence of a 
consumer may not be entered on account of the consumer's failure to repay supervised 
loans under an open-end credit plan, unless the consumer's outstanding balance deseribed 
in seetioH 8 205, subseetiOfl 2, paragraph I, in the account at the end of the statement 
period has at some time exceeded $2,800 and the consumer has not paid the account in 
full subsequent to the date of the last periodic statement showing an outstanding balance 
in excess of $2,800. 
Sec. D-9. 9-A MRSA §2-509, as amended by PL 2009, c. 362, Pt. C, § 1, is further 
amended to read: 
§2-509. Right to prepay 
Subject to the provisions on rebate upon prepayment, section 2-510, 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, hlgh fee high-cost mortgage 
loan, as defined in seetion 8 103, S\:1bseetioH 1 A., paragraph Q, the Federal Truth in 
Lending Act, 15 United States Code, Section 1601 et seq. 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. 
Sec. D-IO. 9-A MRSA §3-206, sub-§l, ~, as amended by PL 1981, c. 638, §3, 
is further amended to read: 
B. The material disclosures required under Article ¥HI 8-A; 
Sec. D-ll. 9-A MRSA §3-506, as amended by PL 2005, c. 65, Pt. C, §4, is 
further amended to read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
§3-506. Limitation 
This Part does not apply to any consumer credit transaction covered by s8etioR g 204 
Article 8-A and subject to the right of rescission pursuant to the Federal Truth in Lending 
Act, 15 United States Code, Section 1601 et seq., nor does it apply to any sale, by any 
dealer or agent or salesR'lafl: salesperson of a registered dealer, registered pursuant to Title 
32, chapter 135, of stocks, bonds, debentures or securities representing stocks, bonds or 
debentures registered pursuant to Title 32, chapter 135 or expressly exempt from 
registration thereof. 
Sec. D-12. 9-A MRSA §6-113, sub-§l, as amended by PL 1981, c. 243, §23, is 
further amended to read: 
1. 
After demand, the administrator, through the Attorney General, may bring a 
civil action against a creditor for any violation listed in section 5 -20 1 or for a violation of 
Article ¥III 8-A. An action may relate to transactions with more than one consumer. If it 
is found that the creditor has made a violation so listed, the court shall order respondent 
to grant to each consumer affected the option to recover all excess charges, to have the 
contract reformed to conform to this Act or to rescind the contract. The court shall order 
amounts recovered or recoverable under this subsection paid to each consumer or set off 
against his the consumer's obligation. A consumer's action takes precedence over a prior 
or subsequent action by the administrator with respect to the claim of that consumer. 
When an action takes precedence over another action under this subsection, to the extent 
appropriate, the other action may be stayed while the precedent action is pending and 
may be dismissed if the precedent action is dismissed with prejudice or results in a final 
judgment granting or denying the claim asserted in the precedent action. A consumer 
whose action is dismissed or results in a final judgment denying the claim may not 
participate in any subsequent recovery on the claim by the administrator. 
Sec. D-13. 9-A MRSA §10-102, sub-§7, as enacted by PL 2009, c. 248, §7, is 
amended to read: 
7. 
"Refund anticipation loan interest rate" or "interest rate" means the interest rate 
that must be diselosed pUi'Siiaat to seetioR g 106, sOOseetioR 6 based on the creditor's 
reasonable estimate of the time the refund will be delivered. 
Sec. D-14. 9-A MRSA §10-310, sub-§I, ~~C and D, as enacted by PL 2009, c. 
248, §9, are amended to read: 
C. At the time a person applies for a refund anticipation loan or refund anticipation 
check, the facilitator of a refund anticipation loan or refund anticipation check shall 
disclose, on a form separate from the application, the refund anticipation loan fee or 
refund anticipation check fee; the fee for tax preparation or any other fee; the time 
within which the proceeds of the refund anticipation loan or refund anticipation check 
will be paid if the loan or check is approved; and the interest rate, ealeulated pursuaHt 
to seeM OR g 106, slibseeMea 6, if the persoR is applyiag for a refund anMeipaMea lean .. 
in the case of a refund anticipation loan, if it is the practice of the facilitator to 
demand repayment upon delivery of the refund, the annual percentage rate based on 
the facilitator's reasonable estimate of the time the refund will be delivered. 
COMMITTEE AMENDMENT 
" 
~ '0' 
\)I",Q-
-
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
D. Prior to the consummation of the refund anticipation loan or refund anticipation 
check transaction, the facilitator of a refund anticipation loan or refund anticipation 
check shall also provide a copy of the completed loan or check application and 
agreement and, for a refund anticipation loan, the disclosures required by Article .g 
8-A. 
Sec. D-15. 9-A MRSA §11-106, sub-§I, ~, as enacted by PL 1991, c. 787, is 
amended to read: 
B. 
A "consumer credit sale" as defined in section 1-301, subsection 11; except that 
the following sections of the Maine Consumer Credit Code apply: section 1-107, 
waiver, agreement to forego rights, settlement of claims; section 1-111, record 
retention; section 1-201, territorial application; section 1-202, exclusions; section 
1-203, jurisdiction and service of process; section 2-507, attorney's fees and 
collection costs; section 3-202, notice to consumer; section 3-203, notice of 
assignment; section 3-305, no assignment of earnings; section 3-306, authorization to 
confess judgment prohibited; section 3-307, certain negotiable instruments 
prohibited; section 3-309, referral sales; section 3-403, assignee subject to defenses; 
section 5-104, no garnishment before judgment; section 5-lO5, limitation on 
garnishment; section 5-106, no discharge from employment for garnishment; section 
5-112, creditor's right to take possession after default; section 5-113, venue; section 
5-114, stay of enforcement of judgment; section 5-115, misrepresentation; section 
5-116, illegal, fraudulent or unconscionable conduct in attempted collection of debts; 
section 5-117, prohibited practices; section 5-201, effect of violations on rights of 
parties; section 5-202, refunds and penalties as setoff to obligation; section 5-301, 
violations; Article VI in its entirety, except that the term "original unpaid balances 
arising from consumer credit transactions" described in section 6-203, subsection 2 
means "gross rental receipts from rental-purchase agreements" for purposes of 
administration of this Article; seetien g 104, regalations, Article 8-A requirements 
related to model forms; and s6etioB g 402, regalation of Federal Truth in Lending 
Act, 15 United States Code, Section 1666a requirements related to credit reports; 
Sec. D-16. 10 MRSA §1141, sub-§I, as amended by PL 2007, c. 695, Pt. B, §2, 
is further amended to read: 
1. Credit card. "Credit card" has the same meaning as "accepted credit card," as 
defined in Title 9 A, seetion 8 103, sHbs6etion 1 A, pa-Fagraph A the Federal Truth in 
Lending Act, 15 United States Code, Section 1601 et seq. 
Sec. D-17. 10 MRSA §1141, sub-§2, as amended by PL 2007, c. 273, Pt. C, §10, 
is further amended to read: 
2. Credit card issuer. "Credit card issuer" has the same meaning as "card issuer," 
as defmed in Title 9 A, seetioB g 103, sooseetion 1 A, paragraph H the Federal Truth in 
Lending Act. 15 United States Code, Section 1601 et seq. 
Sec. D-18. 30-A MRSA §3962, sub-§2, as amended by PL 1993, c. 59, §2, is 
further amended to read: 
2. Delivery to consumer. At the time of the pawn transaction, the pawnbroker shall 
deliver to the consumer a signed, written disclosure complying with the truth-in-Iending 
COMMITTEE AMENDMENT 
~~. 
~,O. 1 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
provisions of the Maine Consumer Credit Code, Title 9-A, Article 8-A, containing the 
items required by subsection 1 and the name and address of the pawnbroker. 
Sec. D-19. 30-A MRSA §3964-A, sub-§3, as amended by PL 1995, c. 309, §27 
and affected by §29, is further amended to read: 
3. Model forms. The Director of Consumer Credit Regulation may issue model 
disclosure forms and clauses to facilitate compliance with the disclosure and 
computational requirements of this subchapter, pursuant to the truth-in-Iending provisions 
of the Maine Consumer Credit Code, Title 9-A, Article 8-A. 
Sec. D-20. 32 MRSA §6192, sub-§6, as enacted by PL 2007, c. 596, §1, is 
amended to read: 
6. 
Foreclosure reconveyance. "Foreclosure reconveyance" means a transaction 
involving: 
A. The transfer of title to a residence in foreclosure, either by transfer of interest 
from the foreclosed homeowner or by creation of a mortgage or other lien or 
encumbrance during the foreclosure process that allows the acquirer to obtain title to 
the property by redeeming the property as a junior lienholder; and 
B. 
The subsequent conveyance, or promise of a subsequent conveyance, of an 
interest back to the foreclosed homeowner by the acquirer or a person acting in 
participation with the acquirer that allows the foreclosed homeowner to possess either 
the residence in foreclosure or other real property. 
For the purposes of this 
paragraph, "interest" includes, but is not limited to, an interest in a contract for deed, 
a land installment contract, a bond for deed, a purchase agreement, an option to 
purchase or a lease. 
"Foreclosure reconveyance" does not include a supervised loan subject to Title 9-A, 
Article & 8-A or the federal Truth in Lending Act made by a supervised lender or 
supervised financial organization to refmance any existing mortgage. 
Sec. D-21. 32 MRSA §6198, sub-§l, ~, as amended by PL 2009, c. 362, Pt. C, 
§4, is further amended to read: 
E. The foreclosure purchaser complies with the requirements for disclosure, loan 
terms and conduct in Title 9-A, sectiofts 8 206 A, 8 206 I afta 8 206 J Article 8-A for 
any foreclosure reconveyance in which the foreclosed homeowner obtains a vendee 
interest in a contract for deed, land installment contract or bond for deed, regardless 
of whether the terms of the contract for deed, land installment contract or bond for 
deed meet the annual percentage rate or points and fees requirements for a covered 
loan. 
Sec. D-22. 33 MRSA §482, sub-§3, as enacted by PL 1983, c. 368, is amended 
to read: 
3. Other disclosures. Disclosures made by the vendor pursuant to Title 9-A, Article 
¥III 8-A, Truth-in-Lending, shall be are deemed to comply with subsection 1, paragraphs 
D to I. 
COMMITTEE AMENDMENT 
<: c,' 
0""'''' 
~ .. , 
COMMITIEE AMENDMENT" A" to S.P. 415, L.D. 1338 
Sec. D-23. 33 MRSA §524, as enacted by PL 1999, c, 145, §1, is amended to 
read: 
§524. Duty of lender 
The lender shall cause, at or before loan closing, disbursement of loan funds to the 
settlement agent; however, in the case of any loan when a right of rescission applies and 
has not been exercised, the lender shall cause disbursement of loan funds to the 
settlement agent prior to noon of the first business day after the expiration of the 
rescission period required under the federal Truth-in-Lending Act, 15 United States Code, 
Section 1601, et seq. and the state truth-in-Iending provisions, Title 9-A, artiole VIII 
Article 8-A, as applicable. 
Sec. D-24. 33 MRSA §525, as enacted by PL 1999, c. 145, §1, is amended to 
read: 
§525. Duty of settlement agent 
The settlement agent shall cause recordation of any deed, mortgage or other 
documents required to be recorded and shall cause disbursement of settlement proceeds 
within 2 business days of settlement or, when any right of rescission applies pursuant to 
the federal Truth-in-Lending Act, 15 United States Code, Section 1601 et seq, or the state 
truth-in-Iending provisions, Title 9-A, article VIII Article 8-A, as applicable, at the time 
that the settlement agent reasonably determines that such right of rescission has not been 
exercised, 
Sec. D-25. 35-A MRSA §10155, sub-§2, as enacted by PL 2009, c. 591, §1, is 
amended to read: 
2. 
Consumer disclosure; truth in lending. 
APACE agreement entered into 
pursuant to aPACE program must provide consumer disclosure consistent with the 
principles of truth in lending as specified in rules adopted by the trust. In adopting such 
rules, the trust shall seek advice from the Department of Professional and Financial 
Regulation, Bureau of Consumer Credit Protection and consumer credit industry 
stakeholders. Notwithstanding Title 9-A, section 1-202, PACE mortgages are not subject 
to the Maine Consumer Credit Code, Article & 8-A.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment does the following. 
The amendment replaces Part A of the bilL The amendment repeals Article 8 of the 
Maine Consumer Credit Code and enacts Article 8-A, which requires creditors to comply 
with federal truth-in-lending laws and regulations. The amendment also retains provisions 
in current state law that provide more protection for consumers than federal law and 
makes those provisions applicable only to nondepository lenders. The retained provisions 
are not applicable to state-chartered financial institutions and credit unions and the Maine 
State Housing Authority. 
COMMITTEE AMENDMENT 
,-' Q~'~' 
~~o' 
COMMITTEE AMENDMENT" A" to S.P. 415, L.D. 1338 
The amendment adds to Part B of the bill a definition of "mortgage loan originator" 
and permits adjustments in the licensing process for nonbank supervised lenders and loan 
brokers to allow regulators to continue to adopt the nationwide mortgage licensing system 
program for those entities. 
The amendment adds Part C to the bill to require the Department of Professional and 
Financial Regulation, Bureau of Consumer Credit Protection to facilitate meetings and 
other communications among interested parties to evaluate and determine the ways in 
which the State's foreclosure prevention outreach and housing counseling program may 
be streamlined and made more efficient. 
The amendment also adds Part D to the bill to correct cross-references. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06?O2111 
..... ac=. 
LD 1338 
LR366(02) 
An Act To Amend the Maine Consumer Credit Code To Conform with Federal Law 
Legislative Cost/Study 
Fiscal Note for Bill as Amended by Committee Amendment "A" ~ - 31 \ 
Committee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
Legislative Cost/Study 
The expenses associated with the participation of2 legislators in the Department of Professional and Financial 
Regulation, Bureau of Consumer Credit Protection workgroups are projected to be $1,000 in fiscal year 2011-12. The 
Legislature'S proposed budget includes $10,000 in fiscal year 2011-12 for legislatIve studies. Whether the amount is 
sufficient to fund all studies will depend on the number of studies authorized by the Legislative Council and the 
Legislature. 
Fiscal Detail and Notes 
Additional costs to the Department of Professional and Financial Regulation are expected to be minor and can be 
absorbed within budgeted resources. The impact on Department of Professional and Financial Regulation revenue is 
also expected to be minor. 
LR0366(02) - Fiscal Note - Page 1 of 1