12-A.__A creditor may not:

A.__Charge any points in connection with a high-rate, high-fee mortgage if the proceeds of the high-rate, high- fee mortgage are used to refinance an existing high-rate, high-fee mortgage owned by the lender and the last financing was within one year of the current refinancing; except, however, this paragraph does not prohibit a lender from charging points in connection with any additional proceeds received by the obligor or paid to 3rd parties on the obligor's behalf in connection with the refinancing.__ For purposes of this subsection, "additional proceeds" for a closed-end loan is the amount over and above the outstanding principal balance of the existing high-rate, high-fee mortgage; except, however, if the lender refunds all of the unearned points on the high-rate, high-fee mortgage being refinanced, "additional proceeds" means the principal balance of the new high-rate, high-fee mortgage; or

B.__Charge a borrower any fees to modify, renew, extend or amend a high-rate, high-fee mortgage or defer any payment due under a high-rate, high-fee mortgage if, after the modification, renewal, extension or amendment, the loan is still a high-rate, high-fee mortgage or, if no longer a high-rate, high-fee mortgage, the annual percentage rate has not been reduced by a least 2 percentage points.__For purposes of this paragraph, the term "fees" does not include interest that is otherwise payable and consistent with the provisions of the loan documents.__The provisions of this paragraph do not prohibit a lender from charging, imposing or causing to be paid, directly or indirectly, prepaid finance charges in connection with any additional proceeds, as defined in paragraph A, received by the borrower in connection with the modification, renewal, extension or amendment, provided the prepaid finance charges on the additional proceeds do not exceed 5% of the additional proceeds.__This paragraph does not apply if the existing high-rate, high-fee mortgage is 60 or more days delinquent and the modification, renewal, extension, amendment or deferral is part of a work-out process.

Sec. 6. 9-A MRSA §8-206-A, sub-§§13-A to 13-C are enacted to read:

13-A.__A creditor may not advertise that refinancing preexisting debt with a high-rate, high-fee mortgage will reduce a borrower's aggregate monthly debt payment without also disclosing that the high-rate, high-fee mortgage may increase