An Act To Require Mortgage Servicers To Act in Good Faith in Dealings with Homeowners
Maine Legislature, Session 127, LD 0920
Committee Amendment CA_A_H383 (House)
Amends: 14 MRSA §6321-A

COMMITTEE AMENDMENT "/1,, to H.P. 639, L.D. 920, Bill, "An Act To 
Require Mortgage Servicers To Act in Good Faith in Dealings with Homeowners" 
Amend the bill by striking out all of section 1. 
Amend the bill in section 2 in subsection 11 by striking out all of the last paragraph 
(page 3, lines 11 to 14 in L.D.) and inserting the following: 
'A mortgage servicer participating in the mediation process submits to the jurisdiction of 
the court with respect to the power of the court to sanction parties who fail to participate 
in the mediation process in good faith as required by subsection 12. As used in this 
section, "mortgage servicer" means a servicer who is responsible for receiving any 
scheduled periodic payments from a borrower pursuant to the terms of any mortgage, 
described in section 6111, subsection 1, including amounts for escrow accounts; making 
or advancing payments to the owner of a mortgage loan or other 3rd parties with respect 
to the amounts received from the borrower pursuant to a loan servicing contract; and 
evaluating borrowers for loss mitigation or loan modification options. ' 
Amend the bill by striking out all of section 3 and inserting the following: 
'Sec. 3. 14 MRSA §6321-A, sub-§12, as enacted by PL 2009, c. 402, §18, is 
amended to read: 
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. 
A mortgage servicer as defined in 
subsection II participating in the mediation process is obligated to participate in good 
faith. 
In determining the nature and extent of appropriate sanctions, the court shall 
consider the need for deterrence of similar future conduct by the party being sanctioned 
and by others, and is permitted to take into account prior orders imposing sanctions upon 
the sanctioned party, whether in the same case or in other previous cases. The imposition 
of any sanction does not bar any independent action by a defendant to seek recovery with 
respect to the actions giving rise to the order of sanctions. As used in this section, "good 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT fJr" to H.P. 639, L.D. 920 
faith" means honesty in fact and the observance of reasonable commercial standards of 
fair dealing.' 
Amend the bill in section 4 in subsection 13 in the 3rd line from the end (page 4, line 
in L.D.) by striking out the following: "section 6113, subsection 1, paragraph B" and 
inserting the following: 'subsection 11' 
Amend the bill by strildng out all of section 5. 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment removes from the bill the private action for damages against a 
mortgage servicer, but incorporates the definitions of "mortgage servicer" and "good 
faith" in that provision into the mediation statutes. The amendment deletes the data 
collection requirement. The amendment, like the bill, requires a mortgage servicer to 
participate in mediation in good faith. 
COMMITTEE AMENDMENT