CHAPTER 161

S.P. 65 - L.D. 159

An Act To Restrict Undocumented Mortgage Agreements

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

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

§506.__Undocumented mortgage agreements

In a residential mortgage loan closing, a buyer, seller or settlement agent may not knowingly be a party to a financial or other arrangement not reflected in the loan settlement statement if the effect of that arrangement is to substantially overstate the contract sales price.__Any violation of this section constitutes a violation of the Maine Unfair Trade Practices Act.