02-030 C.M.R. ch. 550, § 4 - Definitions

For the purpose of this Chapter, the following terms have the following meanings:

1. "Administrator" has the same meaning as set forth in 9-A M.R.S. §6 - 103;

2. "Borrower" means any natural person obligated to repay a loan including a co-borrower, cosigner or guarantor;

3. "Creditor" has the same meaning as set forth in 9-A M.R.S. §1-301(17) and also includes an entity defined as a lender as set forth in 24 C.F.R., § 3500.2 (September 1, 2011 edition),1 including a mortgage broker. The term does not include a supervised financial organization as defined in 9-A M.R.S. §1-301(38-A) or the Maine State Housing Authority;

4. "Flipping a residential mortgage loan" has the same meaningas set forth in 9-A M.R.S. §8-506(5);

5. "Fully indexed rate" means the index rate prevailing at origination plus the margin* that will apply after the expiration of an introductory interest rate.

6. "High-cost mortgage loan" has the same meaning as set forth in 9-A M.R.S. §8-506(1)(H);

7. "Higher-priced mortgage loan" has the same meaning as set forth in 9-A M.R.S. §8-506(1)(I);

8. "Open-end credit" has the same meaning as set forth in 9-A M.R.S. §1-301(26);

9. "Mortgage broker" has the same meaning as set forth in 9-A M.R.S. §8-506(1)(J)

10. "Points and fees" has the same meaning as set forth in 9-A M.R.S. §8-506(1)(K);

11. "Residential mortgage loan" has the same meaning as set forth in 9-A M.R.S. §8-506(1)(L);

12. "Refinancing" has the same meaning as 12 C.F.R. 226.20(a) (September 1, 2011 edition)2 but, for purposes of the reasonable, tangible net benefit analysis, includes open-end credit transactions.

*DRAFTING NOTE: The "index rate" is a published interest rate to which the interest rate on an adjustable rate mortgage is tied. Some commonly used indices include the 1-Year Constant Maturity Treasury Rate (CMT); the 6-Month London Interbank Offered Rate (LIBOR); the 11th District Cost of Funds (COFI); and the Moving Treasury Average (MTA), a 12-Month moving average of the monthly average yields of U.S. Treasury securities adjusted to a constant maturity of one year. The margin is the number of percentage points a creditor adds to the index value to calculate the adjustable rate mortgage interest rate at each adjustment period.

Notes

02-030 C.M.R. ch. 550, § 4

Copies of 24 CFR §3500.2 may be obtained at cost from the Bureau of Consumer Credit Protection or from the Federal Reserve Bank of Boston, 600 Atlantic Avenue, Boston, Massachusetts 02210 tel. (617) 973-3000. In addition, a copy may be obtained at http://www.access.gpo.gov/nara/cfr/cfr-table-search.html .

Copies of 12 CFR 226.20(a) may be obtained at cost from the Bureau of Consumer Credit Protection or from the Federal Reserve Bank of Boston, 600 Atlantic Avenue, Boston, Massachusetts 02210 tel. (617) 973-3000. In addition, a copy may be obtained at http://www.access.gpo.gov/nara/cfr/cfr-table-search.html