An Act To Protect Consumers against Residential Real Estate Title Defects
Maine Legislature, Session 127, LD 0321
Committee: Judiciary
Sponsors: POULIOT, HASKELL, BECK, FREDETTE, HOBBINS, MOONEN, WARREN, WINSOR, BURNS, WHITTEMORE
Amends: 33 MRSA §508

Legislative Document 
No. 321 
H.P. 215 
House of Representatives, February 10, 2015 
An Act To Protect Consumers against Residential Real Estate Title 
Defects 
Reference to the Committee on Judiciary suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative POULIOT of Augusta. 
Cosponsored by Senator HASKELL of Cumberland and 
Representatives: BECK of Waterville, FREDETTE of Newport, HOBBINS of Saco, 
MOONEN of Portland, WARREN of Hallowell, WINSOR of Norway, Senators: BURNS of 
Washington, WHITTEMORE of Somerset. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  33 MRSA §508 is enacted to read: 
§508.  Nominee mortgagees 
1.  Authority presumed.  A person or entity that is appointed the nominee 
mortgagee by the person or entity that holds legal title to a mortgage is presumed to have 
the authority to execute an assignment, partial release, discharge or other instrument that 
affects the title to the mortgaged property unless the person or entity making the 
appointment: 
A.  Explicitly negates such authority within the instrument in which the appointment 
is made; or 
B.  Executes a separate instrument that explicitly negates such authority and that is 
recorded in the registry of deeds within the county or district in which the mortgaged 
property is located. 
2.  Instrument valid.  An assignment, partial release, discharge or other instrument 
affecting the title to mortgaged property or any interest in the property that is otherwise 
valid and that is executed by a nominee mortgagee with authority as provided in 
subsection 1 is valid even if the assignment, partial release, discharge or other instrument 
does not state the authority of the nominee mortgagee to take the action. 
3.  Statement not a limitation of authority.  A statement in an instrument described 
in this section to the effect that, for purposes of recording, the nominee mortgagee is the 
mortgagee of record, or any statement of similar meaning, may not be considered to be a 
limitation upon the authority of the nominee mortgagee. 
SUMMARY 
The purpose of this bill is to protect consumers against defects in titles to real estate 
in which Mortgage Electronic Registration Systems, Inc., appears in the chain of title.  
Under current Maine law, according to Bank of America v. Greenleaf, 2014 ME 89, 102 
A.3d 774, any action by Mortgage Electronic Registration Systems, Inc., other than the 
recording of a mortgage, is invalid and of no force or effect.  A large proportion of Maine 
residential real estate transactions include Mortgage Electronic Registration Systems, 
Inc., in the chain of title, putting consumers at risk of a defect in the title to their property. 
This bill amends Maine law to eliminate that risk by establishing the presumption that 
a nominee mortgagee has the authority to assign or otherwise affect the mortgage even if 
the instrument assigning authority to the nominee mortgagee does not specifically so 
state.  The authority is not presumed if the instrument explicitly negates the authority or if 
a separate written instrument negates the authority and that instrument is recorded in the 
appropriate registry of deeds.