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First Regular Session of the 118th

S.P. 207 - L.D. 666

An Act to Amend the Maine Consumer Credit Code to Permit Reverse Mortgages

     Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

     Whereas, reverse mortgages are special open-end financing programs designed to let elderly persons unlock the equity in their homes without requiring repayment until those persons die or cease to live in the home as a principal residence; and

     Whereas, reverse mortgages offer many elderly persons the ability to remain in their homes; and

     Whereas, there are elderly persons in Maine urgently waiting to use reverse mortgages to stay in their homes; and

     Whereas, federal secondary market agencies like the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association are now offering reverse mortgage programs; and

     Whereas, current law prohibits Maine lenders and federal agencies from offering nationally accepted reverse mortgages in this State; and

     Whereas, this legislation amends the Maine Consumer Credit Code to allow these types of reverse mortgages to be offered in this State; and

     Whereas, this legislation needs to be enacted to allow Maine's elderly residents immediate access to reverse mortgages; and

     Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

     Sec. 1. 9-A MRSA §1-202, sub-§8, ķA, as amended by PL 1987, c. 396, §2, is further amended to read:

     Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

Effective March 28, 1997.

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