§ 14 §6113 — Mortgage servicer duty of good faith

1.
Definitions.
As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
2.
Duty of good faith.
A mortgage servicer shall act in good faith toward an obligor in the servicing of an obligation secured by a mortgage and in any foreclosure action relating to such an obligation.
3.
Effect of violation during foreclosure.
If during a foreclosure action a mortgage servicer controlling or managing the action on its own behalf or on behalf of the owner of the obligation subject to foreclosure is shown to have committed a violation of its duty of good faith under subsection 2, the court may dismiss the action, stay the action on appropriate terms and conditions or impose other appropriate sanctions until the violation is cured.
4.
Remedies for violation.
The following are remedies for a violation of the duty of good faith under subsection 2.
5.
Exclusion.
The term "mortgage servicer" defined in subsection 1 does not include a supervised financial organization as defined in Title 9‑A, section 1‑301, subsection 38‑A; a financial institution holding company as defined in Title 9‑B, section 1011, subsection 1; a mutual holding company as defined in Title 9‑B, section 1052, subsection 2; a credit union service organization as defined in 12 Code of Federal Regulations, Section 712.1; a subsidiary of a supervised financial organization, financial institution holding company, mutual holding company or credit union service organization; or the Maine State Housing Authority.

Legislative History

PL 2019, c. 363, §1 (NEW). PL 2021, c. 203, §1 (AMD).