The Maine Legislature recently passed Senate Document 334. (SP 334), which specifically updates the definition of “mortgage servicer” under the existing Maine statute regarding the duty of a bona fide mortgage servitor. The amendments to the law will take effect 90 days after the close of the current Maine legislature.
The updated wording expands the definition of “mortgage servicer” to cover the person who serves the obligation by performing any of the six listed activities that are defined as “servicing” in the bylaws. These activities include, but is not limited to, obtaining a recurring payment from the borrower in accordance with the terms of the obligation, assessing or communicating with the borrower to mitigate losses, and making a payment to the debtor under the HECM or reverse mortgage. In addition, SP 334 revises the definition of “liability” to include a mortgage deed, even if the debt secured by the mortgage deed was repaid as a result of bankruptcy.