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WBK Industry News - State Regulatory Developments

Maine Modifies Consumer Credit Code to License Mortgage Servicers

Maine recently enacted legislation that modifies the Maine Consumer Credit Code to require mortgage servicers to obtain the Supervised Lender License.  The measure, Maine Senate Paper (SP) 444, goes into effect on November 1, 2017.

Under current law, a person must obtain a Supervised Lender License in order to: (1) make supervised loans; or (2) take assignments of and undertake direct collection of payments from or enforcement or rights from an office in Maine against debtors arising from supervised loans. A “supervised loan” includes a consumer loan which is secured by an interest in real estate.

SP 444 expands the licensing statute’s scope to require all mortgage servicers to obtain the Supervised Lender License in order to service loans in Maine, unless an exemption exists.  Pursuant to SP 444, unless a person is licensed to make or service supervised loans, the person may not engage in the business of: (1) making supervised loans; (2) taking assignments of and undertaking direct collection of payments from or enforcement of rights from an office in Maine against debtors arising from supervised loans; or (3) servicing mortgage loans (emphasis added).

SP 444 also amends the definition of “creditor” to include a “mortgage loan servicer.”  “Mortgage loan servicer” means a person or organization that undertakes direct collection of payments from or enforcement of rights against debtors arising from a supervised loan secured by a dwelling.

The full text of SP 444 is available here.