Maine Origination Reference Guide
- Kacey Olson
Owned by Kacey Olson
| Citation | Topic | Requirement |
| Me. Rev. Stat. Ann. tit. 9-A, §§ 9-101 through 9-408 | Alternative Mortgage Transaction Disclosure | Requires a supervised lender or a financial institution (properly defined, of course) to provide a disclosure in connection with an alternative mortgage transaction which includes “the terms prescribed by Section 4” of such chapters (excluding Subsection [A][4]) , as well as any other additional information under 12 CFR § 226.19. |
| Consumer Credit Code / Me. Rev. Stat. Ann. tit. 9-A, §8-506(2) | Borrower Counseling Certification | A lender may not make a high-cost mortgage loan without first receiving certification from a counselor with a third party, nonprofit organization approved by HUD, a housing financing agency of Maine or the Administrator that the borrower has received counseling on the advisability of the loan transaction. |
| Consumer Credit Code - Loan Brokers (Article X) / Me. Rev. Stat. Ann. tit. 9-A, §10-303 | Disclosure of Consumer Protections | Before any agreement is entered into, or before any money is paid by a borrower, whichever occurs first, the loan broker must provide the borrower with written disclosure of material consumer protections, including the following: (1) the existence and purpose of the surety bond on file with the State, and the procedure for instituting an action against that bond; (2) the requirement that all fees from the borrower, other than bona fide third party fees, be placed in an escrow account; and (3) the requirement for a written, signed agreement between the parties. |
| Consumer Credit Code / Me. Rev. Stat. Ann. tit. 9-A, §2-501(2) | Insurance Disclosure (Offered by Lender) | If the creditor offers property insurance, the creditor must furnish a clear and specific statement in writing to the consumer setting forth the cost of the insurance if obtained from or through the creditor and stating that the consumer may choose the person through whom the insurance is to be obtained. |
| Alternative Mortgage Transactions / Me. Code R. §02-030-250(4) | Loan Terms (Alternative Mortgage Transactions) | The initial duration of an alternative mortgage transaction that is fully amortizing with adjustable features may not exceed 31 years and any increase in the duration as a result of interest rate increases may occur only if the monthly payment is adjusted at least once every 5 years so that the loan is fully amortized within a 40-year period. An alternative mortgage transaction that are partially amortizing must not have a term of less than 4 years at a fixed rate of interest with equal monthly payments of principal and interest based upon an amortization schedule not to exceed 30 years. |
| Consumer Credit Code - Loan Brokers (Article X) / Me. Rev. Stat. Ann. tit. 9-A, §10-302 | Mortgage Broker Agreement | Each agreement between a borrower and a loan broker must be in writing, dated, signed by the borrower and must include the following: (1) a full and detailed description of the services to be performed for the borrower, including all guarantees and all promises of full or partial refund of fees paid, whether or not services are completed, and the length of time for which the agreement remains in effect before return of the fees for nonperformance can be required by the borrower; (2) the terms and conditions of payment, including the total of all payments to be made by the borrower or by any other person or entity, whether to the loan broker or to some other person; and (3) the following notice: NOTICE TO CONSUMER: Do not sign this agreement before you read it. You are entitled to a copy of this agreement. |
| Secure and Fair Enforcement for Mortgage Licensing Act / Me. Rev. Stat. Ann. tit. 9-A, §13-118 | NMLS Unique Identifier | The NMLS unique identifier of any person originating a residential mortgage loan must be clearly shown on all residential mortgage loan application forms, solicitations or advertisements, including business cards or publicly accessible websites and any other documents as established by rule or order of the Administrator. |
Notice of Consumer Choice of Title Attorney | Every supervised lender must provide written notice to the prospective mortgagor that he has the right to select a qualified attorney of his own choice for the performance of title work. The notice must inform the prospective mortgagor that if the attorney chosen by the mortgagor meets the lender's requirements, then no additional fees may be charged to the mortgagor for title work. If the prospective mortgagor indicates on the written notice that he does not wish to exercise his right to select an attorney, then the lender may recommend an attorney. | |
| Insurance Code / Me. Rev. Stat. Ann. tit. 24-A, §2169 | Notice of Right to Choose Insurance Provider | At the time of closing or at the onset of negotiations, the lender must provide a written disclosure informing the borrower that they have the right to choose the agent and insurer for all property-related insurance. In addition, in conjunction with this notice, a lender must inform its borrowers that obtaining insurance products from a particular agent or broker does not affect credit decisions by the lender, unless the insurance product selected violates the terms of the extension of credit regarding adequacy of coverage or is otherwise not approved under Me. Rev. Stat. Ann. tit. 24-A, §2168. |
| Taxation Statutes / Me. Rev. Stat. Ann. tit. 36, §5250-A | Notice of State Tax Withholding | Every buyer of real property located in Maine must withhold a withholding tax equal to 2.5% of the consideration. A lender may be liable for the withholding tax when written notification of the withholding requirements is not provided to the buyer. |
| Consumer Credit Code / Me. Rev. Stat. Ann. tit 9-A §3-206(2) | Notice to Cosigner (as necessary) | A consumer is not obligated as a cosigner with respect to a consumer credit transaction, unless, before or contemporaneously with signing any separate agreement or any writing setting forth the terms of the debtor's agreement or in the case of an open-end account or plan prior to the first extension of credit pursuant to the plan, the consumer receives a written notice. |
| Consumer Credit Code / Me. Rev. Stat. Ann. tit. 9-A, §2-501(2) | Optional Credit Insurance Disclosure (if applicable) | An additional charge may be made for insurance written in connection with a loan, with respect to consumer credit insurance providing life, accident or health coverage or involuntary unemployment coverage, if: (1) the insurance coverage is not a factor in the approval by the lender of the extension of credit, and this fact is clearly disclosed in writing to the borrower; and (2) in order to obtain the insurance in connection with the extension of credit, the borrower gives specific affirmative written indication of the desire to do so after written disclosure to the borrower of the cost of the insurance. |
| Real Property Laws / Me. Rev. Stat. Ann. tit. 33, §507 | Private Mortgage Insurance Disclosure | With respect to a mortgage loan on residential real property for which the processor or underwriter of that loan also engages in the business of private mortgage insurance, a supervised lender or a loan broker shall disclose to the loan applicant at the time of application the fact that the processor or underwriter is also in the business of private mortgage insurance. Failure to provide the disclosure required by this section does not annul, alter or affect the validity or enforceability of the mortgage loan. |
| Consumer Credit Code Regulations / Code Me. R. §02-030-550(5) | Reasonable Tangible Net Benefit Disclosure | A lender must provide the borrower with a written disclosure conspicuously stating the name, address and telephone number of the lender, briefly describing the new high-cost mortgage loan or higher-priced mortgage loan, and identifying the factors considered by the lender in determining whether the borrower is receiving a reasonable, tangible net benefit from the new high-cost mortgage loan or higher-priced mortgage loan. The form must be signed and dated by both the lender and the borrower. |
| Consumer Credit Code / Me. Rev. Stat. Ann. tit. 9-A, §8-506(4) | Repayment Ability | Repayment ability must be determined and verified before making a high cost mortgage. See citation for specific requirements for making this determination. There is no associated worksheet by the state for this purpose. |
| Consumer Credit Code / Me. Rev. Stat. Ann. tit. 9-A, §2-307 | Usury (2nd Lien loans) | The annual percentage rate on a second lien supervised loan secured by an interest in land may not exceed 18%. |