Sec. 1. 9-B MRSA §241, sub-§4, as amended by PL 1999, c. 218, §3, is further amended to read:

4. Land title companies or attorneys. Every financial institution authorized to do business in this State and every credit union authorized to do business in this State that accepts an application for a residential mortgage loan for one to 4 residential units and that requires that an attorney a search of the title of the subject real estate shall permit the prospective mortgagor to select a land title company or a qualified attorney of the mortgagor's choice to search the title of the subject real estate and certify that title to the institution or land title insurance company, except that the.__ The land title company shall provide title insurance to the institution or the attorney shall certify the title to the institution.__The institution may require the prospective mortgagor's attorney to provide it with evidence of adequate liability insurance or land title insurance or such other written policy requirements as the institution may determine necessary to protect its interests, as long as, if.__If all requirements are met by the attorney chosen by the mortgagor, additional legal costs may not be assessed by the financial institution or credit union against the mortgagor for review of the title search or the review or preparation of any other relevant title documents by the institution, its title company or its attorney.

The mortgagor may provide a land title insurance policy in lieu of an attorney's certification to the lending institution.

Every financial institution and credit union subject to this subsection shall provide written notice to the prospective mortgagor that the mortgagor has the right to select a land title company or a qualified attorney of the mortgagor's choice for the performance of title work closing services, along with a list of land title companies and qualified attorneys. The notice must inform the prospective mortgagor whether the institution requires title insurance. The notice must inform the prospective mortgagor that, if the title insurance is required or if the qualified attorney chosen by the mortgagor meets the financial institution's requirements, additional fees may not be charged to the mortgagor for title work closing services. It is the mortgagor's responsibility to provide a mortgage and promissory note as required by the lending institution. If the prospective mortgagor indicates on the written notice that the mortgagor does not wish to exercise the mortgagor's right to select a land title company or an attorney, then the institution may recommend a land title company or an attorney. A financial institution may not require the mortgagor to pay for closing services by an attorney