SP0523
LD 1439
First Regular Session - 124th Maine Legislature
S "B" to C "A", Filing Number S-276, Sponsored by SULLIVAN
Text: MS-Word, RTF or PDF
LR 516
Item 8
Bill Tracking Chamber Status

Amend the amendment on page 2 in paragraph A by inserting after subparagraph (2) and before subparagraph (3) the following:

(3) A creditor is presumed to have complied with this paragraph with respect to a transaction if the creditor:

(a) Verifies the consumer's repayment ability as provided in subparagraphs (1) and (2);

(b) Determines the consumer's repayment ability using the largest payment of principal and interest scheduled in the first 7 years following consummation and taking into account current obligations and mortgage-related obligations; and

(c) Assesses the consumer's repayment ability taking into account at least one of the following:

(i) The ratio of total debt obligations to income; and

(ii) The income the consumer will have after paying debt obligations.

(4) Notwithstanding subparagraph (3), no presumption of compliance is available for a transaction for which:

(a) The regular periodic payments for the first 7 years would cause the principal balance to increase; or

(b) The term of the loan is less than 7 years and the regular periodic payments when aggregated do not fully amortize the outstanding principal balance.

Amend the amendment on page 2 in paragraph A in subparagraph (3) in the first line (page 2, line 26 in amendment) by striking out the following " (3)" and inserting the following: ' (5)'

summary

Committee Amendment "A" removed the presumption of compliance provision in the section of the bill relating to a creditor's obligation to certify a consumer's ability to repay a higher-priced mortgage loan. This amendment restores the provision that establishes the presumption of compliance.


Top of Page