Maine LD 401: An Act To Create Transparency in the Mortgage Foreclosure Process

LD 401 (subjects: REAL ESTATE , FORECLOSURE )

Official bill page at mainelegislature.org: http://www.mainelegislature.org/legis/bills/display_ps.asp?ld=401&PID=1456&snum=127


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


Sponsors

Principal Sponsor: Rep. Roberta Beavers of South Berwick: (D – District 2) — e-mail | Facebook

7 Cosponsors:

Actions

Chamber

Action
2/12/2015 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.
6/3/2015 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-257)
Sent for concurrence. ORDERED SENT FORTHWITH.
6/4/2015 Senate Report READ and ACCEPTED, in concurrence.

READ ONCE.

Committee Amendment “A” (H-257) 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-257), in concurrence.

Ordered sent down forthwith.
6/8/2015 House PASSED TO BE ENACTED.
Sent for concurrence. ORDERED SENT FORTHWITH.
6/9/2015 Senate PASSED TO BE ENACTED, in concurrence.
6/22/2015 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. 306V
146 having voted in the affirmative and 0 in the negative, with 5 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.
6/22/2015 Senate LD 401 In Senate, June 22, 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?” 33 IN FAVOR and 1 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. 401 as originally introduced. L.D. 401 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-257) .

An Act To Create Transparency in the Mortgage Foreclosure Process

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

Sec. 1. 14 MRSA 6321, first and 2nd , as amended by PL 2007, c. 391, 9, are further amended to read:

After breach of condition in a mortgage of first priority, the mortgagee or any person claiming under the mortgagee , as long as that person is the owner of the mortgage loan secured by the mortgage and also is the party entitled to enforce the debt secured by the mortgage, may proceed for the purpose of foreclosure by a civil action against all parties in interest in either the Superior Court or the District Court in the division in which the mortgaged premises or any part of the mortgaged premises is located, regardless of the amount of the mortgage claim.

After breach of condition of any mortgage other than one of the first priority, the mortgagee or any person claiming under the mortgagee , as long as that person is the owner of the mortgage loan secured by the mortgage and also is the party entitled to enforce the debt secured by the mortgage, may proceed for the purpose of foreclosure by a civil action against all parties in interest, except for parties in interest having a superior priority to the foreclosing mortgagee, in either the Superior Court or the District Court in the division in which the mortgaged premises or any part of the mortgaged premises is located. Parties in interest having a superior priority may not be joined nor will their interests be affected by the proceedings, but the resulting sale under section 6323 is of the defendant or mortgagor’s equity of redemption only. The plaintiff shall notify the priority parties in interest of the action by sending a copy of the complaint to the parties in interest by certified mail.

Sec. 2. 14 MRSA 6321, as amended by PL 2013, c. 555, 2, is further amended by adding after the 2nd paragraph a new paragraph to read:

As used in this section, “owner” means the ultimate economic beneficiary of the loan secured by the mortgage, except that, if the loan is held in trust for the benefit of investors or as a means to provide investment interests in a pool of loans, the trustee is considered to be the owner.

SUMMARY

This bill requires a mortgage loan owner to conduct a foreclosure in the name of the mortgage loan owner, instead of a mortgage loan servicer, to ensure that courts and parties know that the foreclosing plaintiff is the mortgage loan owner and the entity whose loan modification programs affect the ability of homeowners to obtain loan modifications.

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 401 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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