Sec. 1. 9-A MRSA §8-103, sub-§1, ¶F-1, as enacted by PL 1995, c. 326, §2, is repealed and the following enacted in its place:

F-1.__"High-rate, high-fee mortgage" means a consumer credit mortgage loan transaction, involving real property located within this State, that is considered a "mortgage" under Section 152 of the federal Home Ownership and Equity Protection Act of 1994, 15 United States Code, Section 1602(aa) and the regulations adopted pursuant thereto by the Federal Reserve Board, including 12 Code of Federal Regulations,__Section 226.32__and the official staff commentary to the regulations as each may be amended from time to time.

Sec. 2. 9-A MRSA §8-206-A, sub-§8, as enacted by PL 1995, c. 326, §5, is amended to read:

8. A high-rate, high-fee mortgage may not provide for an interest rate applicable after default that is higher than the interest rate that applies before default or for default charges in excess of 5% of the amount in default. If the date of maturity of such a mortgage is accelerated due to default and the consumer is entitled to a rebate of interest, that rebate must be computed by a method that is not less favorable than the actuarial method, as that term is defined in the federal Housing and Community Development Act of 1992, Public Law No. 102-550, Section 933(d) 106 Stat. 3672, 3892 (1992).

Sec. 3. 9-A MRSA §8-206-A, sub-§11-A is enacted to read:

11-A.__A lender who makes a high-rate, high-fee mortgage shall report both the favorable and unfavorable payment history of the borrower to a nationally recognized consumer credit reporting agency at least annually during the period the lender holds or services the loan.

Sec. 4. 9-A MRSA §8-206-A, sub-§12, as enacted by PL 1995, c. 326, §5, is amended to read:

12. A creditor may not engage in a pattern or practice of extending credit to a consumer under a high-rate, high-fee mortgage based on the consumer's collateral without regard to the consumer's repayment ability, including the consumer's current and expected income, current obligations and employment. There is a presumption that a creditor has violated this subsection if the creditor engages in a pattern or practice of making loans without verifying and documenting consumers' repayment ability.