ME MLO flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Maine mortgage regulator

The Maine Bureau of Consumer Credit Protection (BCCP), led by the Superintendent, licenses and supervises mortgage lenders, brokers, servicers, and loan originators under Maine law.

ME SAFE Act

Maine's enactment of the federal Secure and Fair Enforcement for Mortgage Licensing Act, codified in 9-B M.R.S. Chapter 32, governing MLO licensing and conduct.

MLO sponsorship requirement

A Maine MLO license must be associated with a licensed mortgage lender or broker; the originator may not conduct origination activity while unsponsored.

Maine MLO continuing education

Eight hours annually, including at least three hours federal law, two hours ethics, two hours nontraditional products, and one hour Maine-specific law.

Renewal deadline

Maine mortgage licenses renew annually with a December 31 deadline; late renewal requires a reinstatement fee and completed continuing education.

Grounds for license denial

Felony convictions involving fraud or dishonesty within seven years, false application statements, prior license revocation, and failure to meet financial responsibility standards.

NMLS role

The Nationwide Multistate Licensing System is the channel for Maine applications, renewals, sponsorship changes, and regulatory reporting by licensees.

Superintendent authority

Maine's Superintendent of Consumer Credit Protection may examine licensees, subpoena records, issue cease-and-desist orders, and impose civil penalties for violations.

Dual compensation limit

An originator may not receive compensation based on loan terms when the borrower pays directly and an investor also pays, except for the amount of credit extended.

Fee splitting prohibition

Maine prohibits splitting origination fees with unlicensed persons and charging fees for services that were not actually performed for the borrower.

Steering prohibition

Directing a borrower to a loan that is not in the borrower's interest in order to increase originator compensation is prohibited conduct under Maine law.

Misrepresentation ban

Licensees may not make false or misleading statements about loan terms, fees, or any affiliation with a government agency or investor.

Nontraditional mortgage disclosure

Interest-only, payment-option, and negative-amortization loans require disclosure of payment shock and qualification at the fully indexed, fully amortizing rate.

Record retention period

Maine licensees must keep loan files, disclosures, and advertising records for at least three years after closing or withdrawal, available to BCCP on request.

Advertising rules

Mortgage advertising must include the licensee's name and license number where required and may not imply government endorsement or contain misleading rate claims.

Unfair trade practices

Maine's Unfair Trade Practices Act, 5 M.R.S. Chapter 10, prohibits deceptive origination conduct and supports borrower claims for damages and fees.

Loan estimate disclosure

Before collecting a nonrefundable fee, the originator must give the borrower a written estimate of settlement costs and total origination charges.

High-cost mortgage protections

Maine high-cost loans restrict prepayment penalties and balloon payments, prohibit negative amortization, and require homeownership counseling before closing.

Right to cure

Maine requires a notice of default and a cure period before foreclosure, and servicers must review borrowers for loss mitigation options.

Servicing standards

Maine's servicing law requires timely payoff statements, accurate periodic statements, prompt payment crediting, and procedures for resolving borrower errors.

Prepayment penalty limit

Maine restricts prepayment penalties on residential mortgages to limited circumstances and bars financing of single-premium credit insurance in connection with a loan.

APR disclosure

The borrower must receive the APR, finance charge, amount financed, and total of payments, with the APR reflecting origination and third-party finance charges.

Plain language requirement

Maine requires mortgage disclosures to be written in plain language, with copies of all documents signed at closing provided to the borrower.

Private right of action

Borrowers may sue for actual damages, statutory damages, and attorney's fees when a licensee violates Maine mortgage disclosure or prohibited-conduct provisions.

Rescission right

Certain refinance transactions give the borrower a right to rescind within three business days under Truth in Lending rules as applied in Maine.

Company license requirements

Mortgage lender and broker applicants submit a business plan, financial statements, surety bond, control-person background checks, and a designated qualifying individual.

Branch licensing

A licensed mortgage company must license each physical branch office through NMLS in addition to the main office license.

Examination powers

BCCP examiners may conduct on-site or remote examinations and require production of books and records; failure to cooperate supports license suspension.

Material change notice

Licensees must report changes in address, ownership, qualifying individual, or sponsorship to BCCP through NMLS, generally within 30 days.

Enforcement remedies

BCCP may enter consent agreements, suspend or revoke licenses, order restitution, assess civil penalties per violation, and refer matters for prosecution.

Annual reporting

Licensees submit annual reports and call-report data through NMLS; inaccurate or missing filings can trigger examination or enforcement action.

Unlicensed activity

Originating mortgage loans without a Maine license is a violation subject to cease-and-desist orders, civil penalties, and restitution to affected borrowers.