Maine LD 321: An Act To Protect Consumers against Residential Real Estate Title Defects

LD 321 (subjects: REAL ESTATE , TITLE )

Official bill page at mainelegislature.org: http://www.mainelegislature.org/legis/bills/display_ps.asp?ld=321&PID=1456&snum=127


Sponsors | Actions | Bill Text & Amendments | Patterns of Support


Sponsors

Principal Sponsor: Rep. Matthew Pouliot of Augusta: (R – District 86) — e-mail | Twitter | Facebook

9 Cosponsors:

Actions

Chamber

Action
2/10/2015 House Committee on Judiciary suggested and ordered printed.
The Bill was REFERRED to the Committee on JUDICIARY.
Sent for concurrence. ORDERED SENT FORTHWITH.
2/12/2015 Senate On motion by Senator Burns of Washington, REFERRED to the Committee on Judiciary, in concurrence.
6/15/2015 House CONSENT CALENDAR – FIRST DAY
Under suspension of the rules
CONSENT CALENDAR – SECOND DAY.
The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment “A” (H-425)
Sent for concurrence. ORDERED SENT FORTHWITH.
6/16/2015 Senate Report READ and ACCEPTED , in concurrence.
READ ONCE
Committee Amendment “A” (H-425) READ and ADOPTED , in concurrence.
Under suspension of the Rules, READ A SECOND TIME AND PASSED TO BE ENGROSSED As Amended By Committee Amendment “A” (H-425) , in concurrence.
6/16/2015 House PASSED TO BE ENACTED.
Sent for concurrence. ORDERED SENT FORTHWITH.
6/17/2015 Senate PASSED TO BE ENACTED, in concurrence.
6/30/2015 House This Bill, having been returned by the Governor, together with objections to the same pursuant to Article IV, Part Third, Section 2 of the Constitution of the State of Maine, after reconsideration, the House proceeded to vote on the question: “Shall this Bill become a law notwithstanding the objections of the Governor?”
ROLL CALL NO. 433V
137 having voted in the affirmative and 10 in the negative, with 4 being absent, and accordingly it was the vote of the House that the Bill become a law notwithstanding the objections of the Governor, since two-thirds of the members of the House so voted.
Sent for concurrence. ORDERED SENT FORTHWITH.
6/30/2015 Senate LD 321 In Senate, June 30, 2015, this Bill, having been returned by the Governor, together with objections to the same pursuant to the provisions of the Constitution of the State of Maine, after reconsideration, the Senate proceeded to vote on the question: “Shall this Bill become a law notwithstanding the objections of the Governor?” 34 In Favor and 0 Against , accordingly it was the vote of the Senate that the Bill become law and the VETO was OVERRIDDEN.

Bill Text & Amendments

Important Note: The bill text below presents L.D. 321 as originally introduced. L.D. 321 was changed by the legislature through amendment. To understand the impact of this legislation in proper context, be sure to read adopted amendment text, available here: C-A (H-425) .

An Act To Protect Consumers against Residential Real Estate Title Defects

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 33 MRSA 508 is enacted to read:

508. Nominee mortgagees

1. Authority presumed. A person or entity that is appointed the nominee mortgagee by the person or entity that holds legal title to a mortgage is presumed to have the authority to execute an assignment, partial release, discharge or other instrument that affects the title to the mortgaged property unless the person or entity making the appointment:

A. Explicitly negates such authority within the instrument in which the appointment is made; or
B. Executes a separate instrument that explicitly negates such authority and that is recorded in the registry of deeds within the county or district in which the mortgaged property is located.

2. Instrument valid. An assignment, partial release, discharge or other instrument affecting the title to mortgaged property or any interest in the property that is otherwise valid and that is executed by a nominee mortgagee with authority as provided in subsection 1 is valid even if the assignment, partial release, discharge or other instrument does not state the authority of the nominee mortgagee to take the action.
3. Statement not a limitation of authority. A statement in an instrument described in this section to the effect that, for purposes of recording, the nominee mortgagee is the mortgagee of record, or any statement of similar meaning, may not be considered to be a limitation upon the authority of the nominee mortgagee.

SUMMARY

The purpose of this bill is to protect consumers against defects in titles to real estate in which Mortgage Electronic Registration Systems, Inc., appears in the chain of title. Under current Maine law, according to Bank of America v. Greenleaf, 2014 ME 89, 102 A.3d 774, any action by Mortgage Electronic Registration Systems, Inc., other than the recording of a mortgage, is invalid and of no force or effect. A large proportion of Maine residential real estate transactions include Mortgage Electronic Registration Systems, Inc., in the chain of title, putting consumers at risk of a defect in the title to their property.

This bill amends Maine law to eliminate that risk by establishing the presumption that a nominee mortgagee has the authority to assign or otherwise affect the mortgage even if the instrument assigning authority to the nominee mortgagee does not specifically so state. The authority is not presumed if the instrument explicitly negates the authority or if a separate written instrument negates the authority and that instrument is recorded in the appropriate registry of deeds.

Patterns of Support

Pattern of Cosponsorship by Region:

Pattern of Cosponsorship by Gender:

Pattern of Cosponsorship by Party:

Pattern of Cosponsorship by Campaign Finance Classification:

Note: Maine Clean Elections Act (MCEA) Qualified candidates only accept a small dollar value of initial contributions early in their campaigns, pledge not to accept further campaign contributions from private sources, and receive public funding for their campaigns. MCEA Non-Qualified candidates choose not to obtain public funding and instead are free to accept campaign contributions from individuals, party committees, political action committees and business sources.


This information about LD 321 was last updated on 2016-05-12.
The Open Maine Politics website is in a beta release and results should not be taken as definitive. Please visit the official website of the Maine State Legislature for entirely verifiable information.

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