Sec. 1. 33 MRSA §506 is enacted to read:

§506. Disclosure regarding private mortgage insurance

At the time of application for a mortgage loan on residential real property, a supervised lender, as defined in Title 9-A, section 1-301, subsection 39, or a credit services organization, as defined in Title 9-A, section 10-102, shall disclose to an applicant if the mortgage loan includes private mortgage insurance and if a company processing the mortgage loan application also engages in the business of private mortgage insurance.

SUMMARY

This bill requires supervised lenders and mortgage brokers to disclose to persons applying for a mortgage on residential real property if the mortgage loan includes private mortgage insurance and if the company processing the loan application also engages in the business of private mortgage insurance.