Due to the provisions of 2011 Me. Legis. Serv. Ch. 427, several parts of Maine’s Consumer Credit Code were changed, in order to make them conform more with Federal Law. Among these changes was the repeal of Article 8, Title 9-A of Maine’s Revised Statutes, which article contained the legal requirements for the ME High Cost Disclosure (Cx1019; required under Me. Rev. Stat. Ann. tit. 9-A, §8-206-A) and the ME Reasonable, Tangible Net Benefit Disclosure Form (Cx13190; required under Me. Rev. Stat. Ann. tit. 9-A, §8-103[1-A][P]).
Despite this repeal, the provisions requiring the Tangible Net Benefit Disclosure were substantively transferred to a new section (Ibid. §8-505). This, combined with the requirements of the Bureau of Consumer Credit Protection (see Code Me. R. 02-030, ch. 550, §5 – ), still necessitate the use of this Disclosure, which will be updated to reflect the recent updates made to the model form in Code Me. R. 02-030 ch. 550, Att. A.
However, due to configuration complexities, there will be two versions of this Disclosure:
- Cx13190, which will print for all Maine high-cost mortgage loans; and
- Cx16407, which will print for all Maine higher-priced mortgage loans.
The determination of whether a loan is a high-cost or higher-priced loan is made through Interthinx, the third-party entity that conducts DocuTech’s HCL Predchecks. If any clients do not conduct HCL Predchecks through Interthinx, they will need to contact their Account Manager and have these documents added to their loan packages, or risk being out-of-compliance with Maine law.
The requirements for Cx1019 have not been substantively transferred to another section of Maine’s statutes and, as such, it is no longer necessary to provide. DocuTech will discontinue providing it effective April 21, 2012.
The changes to the Benefit Disclosure will take effect on April 21, 2012. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
April 13, 2012