As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.’
| HP1559 LD 2189 |
First Special Session - 123rd Legislature - Text: MS-Word, RTF or PDF |
LR 2752 Item 2 |
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| Bill Tracking | Chamber Status | ||
Amend the bill by striking out all of section 1.
Amend the bill in section 2 in §6192 by inserting before subsection 1 the following:
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.’
Amend the bill in section 2 in §6192 in subsection 1 in the last line (page 1, line 20 in L.D.) by inserting after the following: " Regulation" the following: ' , except that "administrator" means the Superintendent of Financial Institutions with regard to a supervised financial organization as defined in Title 9-A, section 1-301, subsection 38-A'
Amend the bill in section 2 in §6192 by striking out all of subsection 2 (page 1, lines 21 to 32 in L.D.) and inserting the following:
(1) The foreclosed homeowner's continuing right to possess the property;
(2) The foreclosed homeowner's continuing legal or equitable interest in the property, including, but not limited to, the right to repurchase, or of any facts that may create an equitable mortgage; or
(3) Any violations of this chapter;
Amend the bill in section 2 in §6192 by striking out all of subsection 4 (page 2, lines 4 to 9 in L.D.) and inserting the following:
Amend the bill in section 2 in §6192 by striking out all of subsection 5 (page 2, lines 10 to 21 in L.D.) and inserting the following:
"Foreclosure reconveyance" does not include a supervised loan subject to Title 9-A, Article 8 or the federal Truth in Lending Act made by a supervised lender or supervised financial organization to refinance any existing mortgage.’
Amend the bill in section 2 in §6192 in subsection 8 in the last line (page 2, line 29 in L.D.) by inserting after the following: " deed" the following: ' , land installment contract or bond for deed'
Amend the bill in section 2 in §6192 by renumbering the subsections to read consecutively.
Amend the bill in section 2 by striking out all of §6193 (page 2, lines 30 to 33 in L.D.) and inserting the following:
‘ § 6193. License required
A foreclosure purchaser may not engage in the business of foreclosure purchasing in this State without first obtaining a license from the administrator, except that a supervised financial organization as defined in Title 9-A, section 1-301, subsection 38-A is not required to be licensed. The requirements for obtaining a license under this chapter must be substantially similar to the requirements for a supervised lender license as provided in Title 9-A, section 2-301.’
Amend the bill in section 2 in §6194 in subsection 2 in paragraph F in the last line (page 3, line 15 in L.D.) by inserting after the following " deed" the following: ' , land installment contract, bond for deed'
Amend the bill in section 2 in §6194 by inserting after subsection 3 the following:
Amend the bill in section 2 in §6195 in subsection 3 in the 4th line (page 4, line 26 in L.D.) by striking out the following: " 12-point" and inserting the following: ' 14-point'
Amend the bill in section 2 in §6195 in subsection 3 in the 8th line (page 4, line 30 in L.D.) by striking out the following: " 10-point" and inserting the following: ' 12-point'
Amend the bill in section 2 in §6197 in the indented paragraph in the last line (page 5, line 22 in L.D.) by striking out the following: " forclosed" and inserting the following: ' foreclosed'
Amend the bill in section 2 in §6198 in subsection 1 by striking out all of paragraph E (page 6, lines 16 to 23 in L.D.) and inserting the following:
Amend the bill in section 2 in §6198 in subsection 2 in paragraph B by striking out all of the first 8 lines (page 6, lines 28 to 35 in L.D.) and inserting the following:
Amend the bill in section 2 in §6198 by inserting after subsection 5 the following:
Amend the bill in section 2 in §6198 by renumbering the subsections to read consecutively.
Amend the bill in section 2 by striking out all of §6199 (page 8, lines 12 to 39 and page 9, lines 1 to 22 in L.D.) and inserting the following:
‘ § 6199. Enforcement
This section applies to any violation of this chapter in connection with the actions of a foreclosure purchaser.
(1) Has commenced an action concerning a foreclosure reconveyance; asserts a defense under that action that the property that is the subject of the eviction action is also the subject of a foreclosure reconveyance in violation of this chapter; or asserts a claim or affirmative defense of fraud, false pretense, false promise, misrepresentation, misleading statement or deceptive practice in connection with a foreclosure reconveyance;
(2) Owned the residence in foreclosure;
(3) Conveyed title to the residence in foreclosure to a 3rd party upon a promise that the defendant would be allowed to occupy the residence or other real property in which the foreclosure purchaser or a person acting in participation with the foreclosure purchaser has an interest and that the residence or other real property would be the subject of a foreclosure reconveyance; and
(4) Since the conveyance, has continuously occupied the residence in foreclosure or other real property in which the foreclosure purchaser or a person acting in participation with the foreclosure purchaser has an interest. For purposes of this subparagraph, notarized affidavits are acceptable means of proof to meet the defendant's burden. Upon good cause shown, a defendant may request and the court may grant up to an additional 2 weeks to produce evidence required to make the prima facie showing.
(1) The failure of the foreclosed homeowner to commence an action in a court of competent jurisdiction in connection with a foreclosure reconveyance within 90 days after the issuance of the stay; and
(2) The issuance of an order lifting the stay by a court hearing claims related to the foreclosure reconveyance.
§ 6200. Rulemaking
The administrator may adopt rules as necessary to carry out the purposes of this chapter. Rules adopted pursuant to this chapter are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.’
Amend the bill by inserting after section 2 the following:
‘Sec. 3. Additional review by Bureau of Consumer Credit Protection. By March 1, 2009, the Superintendent of Consumer Credit Protection, in consultation with the Superintendent of Financial Institutions, shall make recommendations to the joint standing committee of the Legislature having jurisdiction over insurance and financial services matters whether statutory changes are needed in the Maine Revised Statutes, Title 32, chapter 80-B, including, but not limited to, changes to the debt-to-income ratio and definition of primary housing expenses specified in Title 32, section 6198, subsection 1 and to the 82% threshold specified in Title 32, section 6198, subsection 2 and the addition of a requirement that a foreclosure reconveyance contract include a minimum time period within which a foreclosed homeowner may repurchase the home.’
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section number to read consecutively.
summary
This amendment makes the following changes to the bill.
1. It removes the requirement in the bill that foreclosure purchasers be licensed as supervised lenders. Under the amendment, foreclosure purchasers must be licensed and those licensing requirements must be substantially similar to the requirements for supervised lenders.
2. It clarifies that the Superintendent of Financial Institutions is responsible for regulating banks and credit unions to the extent that they engage in the business of foreclosure purchasing.
3. It adds a definition of "bona fide purchaser."
4. It adds references to land installment contracts and bonds for deeds in those instances where the bill refers to contracts for deeds.
5. It removes cross-references to federal law and instead cross-references state law related to mortgage lending.
6. It requires that foreclosed homeowners be provided with a copy of the foreclosure reconveyance contract at least 3 business days prior to execution and requires that a memorandum of the contract be filed with the registry of deeds in the county in which the property is located.
7. It requires that the notice of cancellation be provided in 12-point type rather than 10-point type.
8. It corrects a spelling error.
9. It prohibits door-to-door solicitation by foreclosure purchasers.
10. It makes a violation of the provisions of the Foreclosure Purchasers Act, enacted in the bill, subject to enforcement as a violation of the Maine Unfair Trade Practices Act and incorporates a cross-reference to the improvident transfer laws.
11. It clarifies that a foreclosed homeowner may be awarded actual and consequential damages and costs, including reasonable attorney's fees, in a private action brought for a violation of the Foreclosure Purchasers Act.
12. It extends rule-making authority to the Superintendent of Consumer Credit Protection and the Superintendent of Financial Institutions.
13. It also requires that the Superintendent of Consumer Credit Protection, in consultation with the Superintendent of Financial Institutions, review the laws regulating foreclosure purchasers and make recommendations by March 1, 2009 as to whether changes are needed.