An Act To Require Mortgage Servicers To Act in Good Faith in Dealings with Homeowners
Sec. 1. 14 MRSA §6113 is enacted to read:
§ 6113. Mortgage servicer duty of good faith
(1) Receiving any scheduled periodic payments from a borrower pursuant to the terms of any mortgage described in section 6111, subsection 1, including amounts for escrow accounts;
(2) Making or advancing payments to the owner of a mortgage loan or other 3rd parties with respect to the amounts received from the borrower pursuant to a loan servicing contract; and
(3) Evaluating borrowers for loss mitigation or loan modification options.
(1) Owes payment or performance of an obligation;
(2) Has provided property other than the mortgaged property to secure payment of an obligation;
(3) Has granted a mortgage interest with respect to the mortgaged property; or
(4) Is otherwise accountable in whole or in part for payment of an obligation.
(1) Receiving a scheduled periodic payment from an obligor under the terms of an obligation, including an amount received for an escrow account;
(2) Making or advancing a payment to the owner of an obligation on account of an amount due from the obligor under a mortgage servicing loan document or a servicing contract;
(3) Making a payment to an obligor under a home equity conversion mortgage or reverse mortgage;
(4) Evaluating an obligor for loss mitigation options or communicating with an obligor with respect to loss mitigation options;
(5) Collecting funds from a homeowner for deposit into an escrow account and making payments out of an escrow account; and
(6) Taking any other action with respect to an obligation that affects the obligor's payment or performance of the obligation or that relates to enforcement of the obligation.
(1) The frequency and persistence of violations by the mortgage servicer;
(2) The nature of the violations;
(3) The extent to which the violations were intentional;
(4) The extent to which the actions that constitute violations are prohibited by federal regulations or state rules; and
(5) The extent to which such actions constitute violations by the mortgage servicer of any consent judgments to which it is a party.
Sec. 2. 14 MRSA §6321-A, sub-§11, as amended by PL 2009, c. 476, Pt. B, §6 and affected by §9, is further amended to read:
A mortgage servicer as defined in section 6113, subsection 1, paragraph B participating in the mediation process submits to the jurisdiction of the court with respect to the power of the court to sanction parties who fail to participate in the mediation process in good faith as required by section 6113, subsection 2.
Sec. 3. 14 MRSA §6321-A, sub-§12, as enacted by PL 2009, c. 402, §18, is amended to read:
Sec. 4. 14 MRSA §6321-A, sub-§13, as amended by PL 2013, c. 521, Pt. F, §2, is further amended to read:
Sec. 5. 14 MRSA §6321-A, sub-§14, as enacted by PL 2009, c. 402, §18, is amended to read:
This bill requires servicers of residential mortgage loans to act in good faith when dealing with homeowners who are borrowers under those loans. The bill also makes changes in the foreclosure mediation process providing that, if courts have previously sanctioned the conduct of a mortgage servicer in a foreclosure process, the courts are authorized to directly sanction the mortgage servicer if the mortgage servicer's conduct evidences a failure to mediate in good faith. The bill requires the collection of data on sanctions imposed to provide that, when a mortgage servicer is found to have failed to act in good faith, the court may take into account previous conduct in determining a sanction sufficient to deter such conduct in the same case or future cases.