Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
029 - BUREAU OF FINANCIAL INSTITUTIONS
Chapter 119 - ALTERNATIVE MORTGAGE TRANSACTIONS
Section 029-119-3 - DEFINITIONS

Universal Citation: 02 ME Code Rules ยง 029-119-3

Current through 2024-38, September 18, 2024

As used in this Rule, the following terms have the following meanings, unless the context clearly requires otherwise:

A. "Alternative Mortgage Transaction" means a loan or a credit sale secured by a one to four family dwelling located in this state, other than an open-end credit plan, made primarily for personal, family or household purposes with a term greater than one year:

(1) which is subject to Article IX of the Maine Consumer Credit Code or made to finance or refinance the purchase or initial construction of a one to four family dwelling, including a condominium unit, cooperative housing unit, or a manufactured home, and which is secured by a first lien interest in that property; and

(2) in which the interest rate may be adjusted or renegotiated, involving fixed rates but which implicitly permits rate adjustments by having the loan mature at the end of an interval shorter than the term of the amortization schedule or involving any similar type of rate, method of determining return, term, repayment, or other variation not common to fixed rate, fixed term transactions, including, but not limited to, shared appreciation mortgages, adjustable rate mortgages, partially amortized mortgages and renegotiable rate mortgages.

B. "Creditor" means a supervised lender, other than a supervised financial organization, as those terms are defined in 9-A M.R.S.A. §§1 - 301(39) and 1 - 301(38), respectively.

C. "Federally related mortgage loan" means a loan meeting the definition of "alternative mortgage transaction," defined in Subsection A of this section, which is:

(1) made in whole or in part, or issued, supplemented or assisted in any way by the Secretary of the Department of Housing and Urban Development ("Secretary") or any other officer of the Federal government or under or in connection with a housing or urban development program administered by the Secretary or a housing or related program administered by any other such officer or agency; or

(2) made according to loan terms which, at the time of closing, comply with loan program approved for purchase by the Federal National Mortgage Association ("Fannie Mae"), the Government National Mortgage Association ("Ginnie Mae"), or the Federal Home Loan Mortgage Corporation ("Freddie Mac").

D. "Financial Institution" means a financial institution or credit union authorized to do business in this State, as defined by Title 9-B M.R.S.A. §131(17-A) and (12-A).

E. "Partially amortizing loan" means an alternative mortgage transaction made to finance or to refinance the property which is secured by a mortgage on the property, and where the periodic loan payments are based on full amortization over a period not to exceed 30 years but in which the outstanding principal balance, interest and any outstanding fees or charges are due and payable at the end of a period of less than the amortization period upon which the payment amount is based.

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