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Bill > LD381
ME LD381
ME LD381An Act to Enable Mortgage Portability and Promote Housing Affordability in the State
summary
Introduced
02/04/2025
02/04/2025
In Committee
02/04/2025
02/04/2025
Crossed Over
Passed
Dead
03/20/2025
03/20/2025
Introduced Session
132nd Legislature
Bill Summary
This bill authorizes mortgage porting, which is the process by which a mortgagor transfers the terms, outstanding balance and interest rate of an existing mortgage loan secured against a single-family dwelling or a dwelling that consists of no more than 4 units that is the principal residence of the mortgagor to another principal residence. The bill provides that a mortgagor is eligible for mortgage porting from a lender if the mortgagor has maintained the mortgagor's existing mortgage loan in good standing; the mortgagor meets the lender's appraisal and underwriting criteria; and the transfer is executed within 6 months from the sale of the previous principal residence of the mortgagor. The bill requires that, upon approval of mortgage porting, a lender must transfer the outstanding balance, interest rate and terms of the existing mortgage loan to the new mortgage loan and also requires that any additional funds needed to purchase the new principal residence must be financed at current market rates, although a lender must provide the option for a blended interest rate for the new mortgage loan.
AI Summary
This bill introduces a new law that enables mortgage portability, which allows homeowners to transfer their existing mortgage terms, balance, and interest rate to a new primary residence. Under this legislation, a homeowner can port their mortgage if they have maintained their loan in good standing, meet the lender's underwriting criteria, and complete the transfer within 6 months of selling their previous home. The bill requires supervised lenders (a legal term for regulated financial institutions) to transfer the existing loan's terms upon approval, with the option to extend the repayment period. If additional funds are needed to purchase the new home, these must be financed at current market rates, though lenders must offer a blended interest rate option. Lenders can charge a one-time porting fee but must disclose all terms, conditions, and fees in writing to the borrower in advance. The bill aims to provide more flexibility for homeowners when moving, potentially making home ownership and relocation more affordable by allowing them to keep their existing favorable mortgage terms. The legislation will be implemented through rules adopted by the state's financial administrator.
Committee Categories
Health and Social Services
Sponsors (9)
Joseph Martin (R)*,
Rick Bennett (I),
Scott Cyrway (R),
Matt Harrington (R),
Michael Lance (R),
Katrina Smith (R),
Michael Soboleski (R),
Nathan Wadsworth (R),
Peter Wood (R),
Last Action
Ought Not to Pass Pursuant To Joint Rule 310, Mar 20, 2025 (on 03/20/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://legislature.maine.gov/legis/bills/display_ps.asp?LD=381&snum=132 |
| Fiscal Note: Text | https://legislature.maine.gov/legis/bills/bills_132nd/fiscalpdfs/FN038101.pdf |
| BillText | https://legislature.maine.gov/legis/bills/getPDF.asp?paper=SP0147&item=1&snum=132 |
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