Sec. C-1. 9-A MRSA �1-202, sub-�1-A is enacted to read:
1-A. Transactions for which the administrator, by rule, determines that coverage under this Title is not necessary to carry out the purposes of this Title;
Sec. C-2. 9-A MRSA �8-104, sub-��4 and 5 are enacted to read:
4. The administrator may exempt, by rule, from all or part of this Title any class of transactions, other than transactions involving a mortgage described in section 8-103, subsection 1, paragraph F-1, for which, in the determination of the administrator, coverage under all or part of this Title does not provide a meaningful benefit to consumers in the form of useful information or protection. In determining which classes of transactions to exempt in whole or in part under this subsection, the administrator shall consider the following factors:
A. The amount of the loans and whether the disclosures, right of rescission and other provisions provide a benefit to the consumers who are parties to such transactions, as determined by the administrator;
B. The extent to which the requirements of this Title complicate, hinder or make more expensive the credit process for the class of transactions;
C. The status of the borrowers, including:
(1) Any related financial arrangements of the borrowers, as determined by the administrator;
(2) The financial sophistication of the borrowers relative to the type of transaction; and
(3) The importance to the borrowers of the credit, related supporting property and coverage under this Title, as determined by the administrator;
D. Whether a loan is secured by the principal residence of the consumer; and
E. Whether the goal of consumer protection would be undermined by such an exemption.
5. The administrator, by rule, may exempt from the requirements of this Title certain credit transactions if:
A. The transaction involves a consumer:
(1) With an annual earned income of more than $200,000; or
(2) Having net assets in excess of $1,000,000 at the time of the transaction; and
B. A waiver that is handwritten, signed, and dated by the consumer is first obtained from the consumer.
The administrator, at the administrator's discretion, may adjust the annual earned income and net asset requirements of this subsection for inflation.
Sec. C-3. 9-A MRSA �8-108, sub-�3, as enacted by PL 1981, c. 243, �25, is amended to read:
3. Reimbursement. The administrator shall have the authority to may adopt, by rule, a reimbursement program such that creditors subject to an administrative order under section 6-108 may be ordered to make whatever adjustments are necessary to insure that any person will not be required to pay a finance charge in excess of the finance charge actually disclosed or the dollar equivalent of the annual percentage rate actually disclosed, whichever is lower. In determining any readjustment, the administrator shall apply, with respect to the annual percentage rate, a tolerance allowed under section 8-106 and, with respect to the finance charge, a corresponding numerical tolerance as generated by the tolerance allowed by section 8-106 for the annual percentage rate.
The administrator may order partial adjustment or partial payments over an extended period if the administrator determines that a partial adjustment or making partial payments over an extended period is necessary to avoid causing the creditor to become undercapitalized pursuant to the Federal Deposit Insurance Act.
Sec. C-4. 9-A MRSA �8-206, sub-�1, ��M and N, as enacted by PL 1981, c. 243, �25, are amended to read:
M. A statement that the consumer should refer to the appropriate contract document for any information such document provides about nonpayment, default, the right to accelerate the maturity of the debt and prepayment rebates and penalties; and
N. In any residential mortgage transaction, a statement indicating whether a subsequent purchaser or assignee of the consumer may assume the debt obligation on its original terms and conditions.; and
Sec. C-5. 9-A MRSA �8-206, sub-�1, �O is enacted to read:
O. In the case of a variable interest rate residential mortgage transaction, in disclosures provided at application as prescribed by the administrator for a variable rate transaction secured by the consumer's principal dwelling, at the option of the creditor, a statement that the periodic payments may increase or decrease substantially, and the maximum interest rate and payment for a $10,000 loan originated at a recent interest rate, as determined by the administrator, assuming the maximum periodic increases in rates and payments under the program, or a historical example illustrating the effects of interest rates changes implemented according to the loan program.
Sec. C-6. 9-A MRSA �8-208-A, sub-�1, as enacted by PL 1995, c. 614, Pt. A, �13, is amended to read:
1. For any closed-end consumer credit transaction subject to this Title that is secured by real property or a dwelling and that is consummated before September 30, 1995, a creditor or any assignee of a creditor does not have civil, administrative or criminal liability under this Title for, and a consumer does not have extended rescission rights under section 8-204, subsection 6 with respect to:
A. The creditor's treatment, for disclosure purposes, of:
(i) Taxes described in section 8-105, subsection 4, paragraph C;
(ii) Fees described in section 8-105, subsection 5, paragraphs B and E;
(iii) Fees and amounts described in section 8-105, subsection 1-A; or
(iv) Borrower-paid mortgage broker fees referred to in section 8-105, subsection 1, paragraph F;
B. The form of written notice used by the creditor to inform the obligor of the rights of the obligor under section 8-204 if the creditor provided the obligor with a properly dated form of written notice published and adopted by the administrator or a comparable written notice and otherwise complied with all the requirements of this section regarding notice; or
C. Any disclosure relating to the finance charge imposed with respect to the transaction if the amount or percentage actually disclosed:
(i) Is deemed accurate for purposes of this Title and if the amount disclosed as the finance charge does not vary from the actual finance charge by more than $200;
(ii) May, under section 8-105, subsection 6, paragraph B, be deemed accurate for purposes of section 8-204; or
(iii) Is greater than the amount or percentage required to be disclosed under this Title.
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