An Act To Require Mortgage Servicers To Act in Good Faith in Dealings with Homeowners
Maine Legislature, Session 128, LD 0731
Committee Amendment CA_A_S229 (Senate)
Amends: 9-A MRSA §9

COMMITTEE AMENDMENT "A " to S.P. 243, L.D. 731, Bill, "An Act To 
Require Mortgage Servicers To Act in Good Faith in Dealings with Homeowners" 
Amend the bill by striking out everything after the enacting clause and before the 
summaty and insetting the following: 
'Sec. 1. 9-A MRSA §9-403-A is enacted to read: 
§9-403-A. Good faith and fair dealing 
1. A person who services a consumer credit transaction that is made to finance or 
refinance the acquisition of real estate or the initial construction of a dwelling or that is 
secured by a first-lien m01tgage on real estate, including but not limited to transactions 
described in section 9-101, shall, in addition to duties imposed by other statutes or at 
common law: 
A. Act in good faith and with fair dealing in any transaction, practice or course of 
business in connection with the origination or servicing of any m01tgage loan and in 
any foreclosure action relating to that obligation; 
B. Safeguard and account for any money handled for the b01rnwer; 
C. Use reasonable skill, care and diligence; and 
D. 
Timely and clearly disclose to the borrower material infonnation that might 
reasonably affect the b01rnwer's rights, interests or ability to receive the borrower's 
intended benefit from the residential m01tgage loan, including servicing-related 
activities. 
A servicer participating in the mediation process pursuant to Title 14, section 6321-A 
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submits to the jurisdiction of the court with respect to the power of the comt to sanction 
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patties who fail to patticipate in the mediation process in good faith. 
2. The duties and standards of care created in this section may not be waived or 
modified. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to S.P. 243, L.D. 731 
3. This section does not apply to a supervised financial organization, a financial 
institution holding company as defined in Title 9-B, section 1011, subsection 1 or a 
mutual holding company as defined in Title 9-B, section 1052, subsection 2 or a 
subsidimy of any of these entities. 
Sec. 2. 9-A MRSA §9-405, sub-§1, as amended by PL 2005, c. 206, §4, is fmiher 
amended to read: 
1. 
If a creditor, assignee or servicer has violated the provisions of this atiicle 
applying to timely payments from escrow, section 9-305-A, timely responses to requests 
for payoff figures, section 9-305-B, misrepresentation, section 9-401, 
& 
illegal, 
fraudulent or unconscionable conduct in an attempted collection of debts, section 9-403, 
or duties of good faith and fair dealing, section 9-403-A, any aggrieved consumer has a 
right to recover all actual damages from that person, or in lieu thereof any consumer 
named as a plaintiff in the complaint as originally filed has a right to recover from a 
person violating this atiicle an amount dete1mined by the court not less than $250 nor 
more than $-l-,-000 $2,000. 
In addition to actual damages, the comi may award a 
homeowner or borrower statutory damages not to exceed $15,000 for a pattern or practice 
of violating section 9-403-A. No action pursuant to this subsection may be brought more 
than 2 years after the due date of the last scheduled payment.' 
SUMMARY 
This amendment replaces the bill. It imposes the duty to act in good faith and with 
fair dealing and consistently with specified standards of care on any person who services 
a consumer credit transaction that is made to finance or refinance the acquisition of real 
estate or the initial construction of a dwelling or that is secured by a first-lien mortgage 
on real estate. This amendment specifies that the duties and standards of care may not be 
waived or modified. 
This amendment allows an aggrieved consumer to recover all damages or an amount 
determined by the comi not less than $250 nor more than $2,000. Under current law, an 
aggrieved consumer may recover no more than $1,000. The amendment provides that the 
comi may, in addition to awarding actual damages, award a homeowner or borrower 
under the Maine Consumer Credit Code statutory damages not to exceed $15,000 if the 
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creditor, assignee or servicer engaged in a pattern or practice of violating the duties and 
standards of care. 
COMMITTEE AMENDMENT