Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 030 - BUREAU OF CONSUMER CREDIT PROTECTION › Chapter 550 - MORTGAGE LENDING: GUIDELINES FOR DETERMINING REASONABLE, TANGIBLE NET BENEFIT › Section 030-550-4 - Definitions

Current through 2024-29, July 17, 2024
For the purpose of this Chapter, the following terms have the
				  following meanings:
1. "Administrator"
				has the same meaning as set forth in 9-A M.R.S. §6 - 103;
2. "Borrower" means any natural person
				obligated to repay a loan including a co-borrower, cosigner or
				guarantor;
3. "Creditor" has the
				same meaning as set forth in
				9-A M.R.S.
				§1-301(17) and also
				includes an entity defined as a lender as set forth in
				24
				C.F.R., §
										3500.2 (September 1, 2011
				edition),1 including a
				mortgage broker. The term does not include a supervised financial organization
				as defined in
				9-A M.R.S.
				§1-301(38-A) or the
				Maine State Housing Authority;
4.
				"Flipping a residential mortgage loan" has the same meaningas set forth in
				9-A M.R.S.
				§8-506(5);
5. "Fully indexed rate" means the index rate
				prevailing at origination plus the margin* that will apply after the expiration
				of an introductory interest rate.
6. "High-cost mortgage loan" has the same
				meaning as set forth in
				9-A M.R.S.
				§8-506(1)(H);
7. "Higher-priced mortgage loan" has the same
				meaning as set forth in
				9-A M.R.S.
				§8-506(1)(I);
8. "Open-end credit" has the same meaning as
				set forth in
				9-A M.R.S.
				§1-301(26);
9. "Mortgage broker" has the same meaning as
				set forth in
				9-A M.R.S.
				§8-506(1)(J)
10. "Points and fees" has the same meaning as
				set forth in
				 9-A M.R.S.
				§8-506(1)(K);
11.  "Residential mortgage loan" has the same
				meaning as set forth in
				9-A M.R.S.
				§8-506(1)(L);
12. "Refinancing" has the same meaning as
				12 C.F.R.
				226.20(a) (September 1, 2011
				edition)2 but, for
				purposes of the reasonable, tangible net benefit analysis, includes open-end
				credit transactions.
*DRAFTING NOTE: The "index rate" is a published interest rate
				  to which the interest rate on an adjustable rate mortgage is tied. Some
				  commonly used indices include the 1-Year Constant Maturity Treasury Rate (CMT);
				  the 6-Month London Interbank Offered Rate (LIBOR); the 11th District Cost of
				  Funds (COFI); and the Moving Treasury Average (MTA), a 12-Month moving average
				  of the monthly average yields of U.S. Treasury securities adjusted to a
				  constant maturity of one year. The margin is the number of percentage points a
				  creditor adds to the index value to calculate the adjustable rate mortgage
				  interest rate at each adjustment period.
Copies of
					 24
					 CFR §3500.2 may be obtained at cost from
					 the Bureau of Consumer Credit Protection or from the Federal Reserve Bank of
					 Boston, 600 Atlantic Avenue, Boston, Massachusetts 02210 tel. (617) 973-3000.
					 In addition, a copy may be obtained at
http://www.access.gpo.gov/nara/cfr/cfr-table-search.html
.
Copies of
					 12 CFR
					 226.20(a) may be obtained at
					 cost from the Bureau of Consumer Credit Protection or from the Federal Reserve
					 Bank of Boston, 600 Atlantic Avenue, Boston, Massachusetts 02210 tel. (617)
					 973-3000. In addition, a copy may be obtained at
http://www.access.gpo.gov/nara/cfr/cfr-table-search.html