Housing (Mortgages)

This Maine bill expands consumer protections and financing options for owners of manufactured housing, mobile homes, and tiny homes by clarifying that these structures are treated as real estate for mortgage purposes. It establishes a mediation process that residents can trigger if a community owner proposes lot rent or fee increases exceeding the regional Consumer Price Index, requiring the owner to provide detailed cost comparisons in advance. The legislation also creates a formal procedure for owners to convert their mobile home titles into real property deeds, which facilitates traditional home financing and requires landowners to consent to this process without unreasonable delay. Additionally, the bill reduces minimum lot size requirements for new mobile home parks and mandates that purchasers of these communities hire a third party to inspect the site's infrastructure before closing a deal.

This bill defines and regulates "shared appreciation agreements" for residential property in Maine. It directly affects homeowners who enter such agreements (where a provider gives money in exchange for a share of future property value) and the providers offering these agreements. Key provisions ban liens on property, restrictions on renting or refinancing, excessive fees, mandatory arbitration, and require providers to pay for the homeowner's independent legal counsel before signing. The bill caps repayment amounts at 200% of the initial advance and makes agreements violating these rules unenforceable, with violations triggering license revocation for providers.

LD 1444 requires mortgage lenders (mortgagees) to provide homeowners (mortgagors) with a 35-day written notice before starting a foreclosure action on a primary residence. This notice must detail the homeowner's right to cure the default by paying overdue amounts, including interest and fees, before foreclosure proceedings begin. The bill mandates that lenders prove strict compliance with this notice requirement in court; failure to do so results in dismissal of the foreclosure case and bars future foreclosure attempts on that property. The law applies retroactively to all past foreclosure judgments, orders, or dismissals in Maine. It directly affects homeowners facing foreclosure and lenders seeking to enforce mortgage defaults.

LD 381 allows Maine homeowners to transfer the remaining balance and interest rate of their existing mortgage to a new primary residence, directly affecting those buying or selling homes. To qualify, homeowners must maintain good payment history, meet lender underwriting standards, and complete the transfer within six months of selling their previous home. The bill requires lenders to transfer the original loan terms to the new property, while any additional funds needed for the new home must be financed at current market rates - though lenders must offer a blended interest rate option. This aims to reduce costs for homeowners moving within the state, promoting housing affordability without altering existing mortgage terms.