Does the state require a physical location within the state?
No.

Is there individual loan officer licensing?
Yes, at the time of application for a license the applicant shall also register all loan officers they employ.

What are lenders, brokers and loan officers called?
Maine uses the terms loan broker, supervised lender and loan officer.

What is the cost of a license? Surety bond? Are there net worth requirements?
Maine issues a Loan Broker license and a Supervised Lender license.

A Supervised Lender may act as a lender or broker while a Loan Broker may only act as a broker.

An application must be submitted to the Office of Consumer Credit Regulation for either license.

A supervised lender applicant must also submit a surety bond in the amount of $50,000, evidence of available assets of at least $25,000 and an initial license fee of $500 plus $200 for each additional branch. Licenses are granted for a two-year period.

A loan broker applicant must submit a surety bond of $25,000 and an initial license fee of $400 (there is no set net worth requirement for a loan broker). At the time of application and on an ongoing basis the applicant shall also register all loan officers employed by the applicant. The application must include the names, addresses and work location of the loan officers and must be accompanied by an application fee of $20.00 for each loan officer, up to a maximum of $200.

Is there a pre-licensing education requirement? Is there a test?
Educational requirements have been established in Maine by rule for individuals licensed as supervised lenders or loan brokers, or registered as loan officers. All persons subject to this rule who are licensed or registered prior to January 31, 2008 must, before January 31, 2008, complete a minimum of 12 credit-hours of approved courses or tests/examination; and during each 12-month following January 31, 2008 complete 12 credit-hours of continuing education consisting of qualifying courses or tests/examinations.

To qualify for licensure or registration after January 31, 2008, persons subject to this rule must complete a minimum of 16 credit-hours of approved courses or tests/examinations, which will satisfy this rule’s requirements for the period ending on January 31 immediately subsequent to qualification. At least two of the 16 credit-hours must consist of a review of Maine laws and rules and at least two of the 16 credit-hours must consist of a study of ethics and ethical considerations affecting the mortgage industry. Those individuals must thereafter complete an additional 12 credit-hours of approved continuing education during each subsequent 12-month period, of which at least one of the 12 credit-hours must consist of a review of Maine laws and rules and at least one of the 12 credit-hours must consist of a study of ethics and ethical considerations affecting the mortgage industry.

Is there a CE requirement?
Yes, 12 hours annually (see section on pre-licensing education requirements).

Are there different requirements for mortgage brokers and mortgage lenders (i.e. can you broker under a lender license?).
Yes, you may both broker and lend, first and junior lien loans, under a Maine Supervised Lender License. However, when acting as a broker, lenders must include the broker's disclosure statement in the consumer's contract.

Are there any state specific high cost loan provisions?
Maine enacted “An Act To Enhance Consumer Protections In Relation To Certain Mortgages” which became effective January 1, 2004. The act defines a high-rate, high-fee mortgage as a transaction that is considered a "mortgage" under federal Home Ownership Equity Protection Act (HOEPA) rules and the official staff commentary thereto. In other words, Maine has adopted Section 32 thresholds for annual percentage rate (APR) and points and fees tests. Numerous requirements and restrictions are placed on high-rate, high-fee mortgages by the act.

Are there any state specific predatory lending laws?
See section on high-cost loan provisions.

Closing practices – attorney or title state? Wet or dry settlement?
Maine has a wet settlement act, which provides statutory requirements with regard to how funds are disbursed. The statutes also outline penalties that may be assessed if the statutes are not followed. In most cases, there are severe penalties for noncompliance.

Are there 2nd mortgage policies and/or restrictions? Do you need a separate license to do 2nd mortgages?
There is no separate second mortgage licensing.

Who is the regulator and what is their contact information?
State of Maine
Department of Professional and Financial Regulation
Office of Consumer Credit Regulation
35 State House Station
Augusta, ME 04333-0035
Phone: 207-624-8527
Fax: 207-582-7699
www.credit.maine.gov

DISCLAIMER: The data contained here is for informational purposes only. It should not be the sole resource for licensing decisions. Please consult the regulator and/or an attorney that specializes in these matters before taking action.


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