An Act To Improve the Foreclosure Process by Regulating Mortgage Loan Servicers
Sec. 1. 9-A MRSA §1-301, sub-§17, as repealed and replaced by PL 2011, c. 427, Pt. A, §4, is amended to read:
For the purpose of the requirements imposed under Article 8-A for credit billing pursuant to 15 United States Code, Section 1666 et seq. and for open-end consumer credit pursuant to 15 United States Code, Section 1637(a)(5), (a)(6), (a)(7), (b)(1), (b)(2), (b)(3), (b)(8) and (b)(10), "creditor" also includes card issuers whether or not the amount due is payable by agreement in more than 4 installments or the payment of a finance charge is or may be required and the administrator shall by regulation apply these requirements to those card issuers, to the extent appropriate, even though the requirements are by their terms applicable only to creditors offering open-end credit plans.
For the purposes of this Title, "creditor" also includes any person who originates 2 or more mortgages referred to as high-cost mortgage loans under Article 8-A, section 8-506 in any 12-month period or any person who originates one or more such mortgage loans through a mortgage broker as defined in Article 8-A, section 8-506, subsection 1, paragraph J, or a loan broker as defined in Article 10.
For purposes of this Title, "creditor" also includes a private educational lender as that term is defined in 15 United States Code, Section 1650.
A person regularly extends consumer credit only if the person extended credit other than credit subject to high-cost mortgage loan requirements more than 25 times or more than 5 times for transactions secured by a dwelling in the preceding calendar year. If a person did not meet these numerical standards in the preceding calendar year, the numerical standards must be applied to the current calendar year.
"Creditor" includes a mortgage loan servicer.
Sec. 2. 9-A MRSA §1-301, sub-§24-C is enacted to read:
Sec. 3. 9-A MRSA §1-301, sub-§38-A, ¶B, as amended by PL 2001, c. 371, §3, is further amended to read:
(1) Organized, chartered or holding an authorization certificate under the laws of a state or of the United States that authorizes the person both to make or service loans and to receive deposits, including a savings, share, certificate or deposit account; or
(2) A nondepository trust company, uninsured bank or merchant bank organized, chartered or holding an authorization certificate under the laws of a state or of the United States that authorizes the limited-purpose financial institution to make or service loans.
Sec. 4. 9-A MRSA §1-301, sub-§39, as amended by PL 1997, c. 66, §4, is further amended to read:
Sec. 5. 9-A MRSA §2-301, as amended by PL 1987, c. 129, §33, is further amended to read:
§ 2-301. Authority to make or service supervised loans
Unless a person is a supervised financial organization or has first obtained a license pursuant to this Act from the administrator authorizing him the person to make or service supervised loans, he shall the person may not engage in the business of:
Sec. 6. 9-A MRSA §2-302, as amended by PL 2013, c. 466, §§1 to 5, is further amended to read:
§ 2-302. License to make or service supervised loans
Sec. 7. 9-A MRSA §2-303, sub-§1, as amended by PL 2011, c. 427, Pt. B, §7, is further amended to read:
An affirmative finding by the District Court of either cause is sufficient to suspend or revoke the license.
Sec. 8. 9-A MRSA §2-303-A, as amended by PL 2011, c. 427, Pt. B, §8, is further amended to read:
§ 2-303-A. Temporary suspension of license
Notwithstanding Title 5, sections 10003 and 10004 and Title 10, section 8003, if the public interest or the protection of borrowers so requires, the administrator may, by order, suspend a license to make or service supervised loans or a license as a mortgage loan originator or postpone the effective date of such a license. Upon entry of the order, the administrator shall promptly notify the applicant or licensee that an order has been entered, of the reasons for the order and that, within 15 days after the receipt of a written request by the applicant or licensee, the matter must be scheduled for hearing. Section 2-303 applies to all subsequent proceedings.
Sec. 9. 9-A MRSA §2-304, sub-§2, as amended by PL 2013, c. 466, §6, is further amended to read:
Sec. 10. 9-A MRSA §2-309, as enacted by PL 1973, c. 762, §1, is amended to read:
§ 2-309. No other business for purpose of evasion
A supervised lender may not carry on other business for the purpose of evasion or violation of this Act at a location where he the supervised lender makes or services supervised loans.
This bill amends the Maine Consumer Credit Code to add mortgage loan servicer to the definition of "creditor," to define "mortgage loan servicer" and to require mortgage loan servicers to be licensed in the same manner as supervised lenders are.