Skip Maine state header navigation

Agencies | Online Services | Help

Skip All Navigation

Maine.gov > PFR Home > Bureau of Financial Institutions > Notices to Interested Parties
>> All Notices by date

DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION

 

030

BUREAU OF CONSUMER CREDIT PROTECTION
Chapter 240

029

BUREAU OF FINANCIAL
INSTITUTIONS
Chapter 138 (Regulation 38)

Truth-in-Lending; Regulation Z-2

Statement of Impact on Small Business

Prepared pursuant to 5 MRSA §8052, sub-§5-A

  1. Identification of the types and an estimate of the number of the small businesses subject to the proposed joint rule, Chapter 240 (Bureau of Consumer Credit Protection) and Chapter 138 (Bureau of Financial Institutions):

The types of small businesses subject to the proposed amended joint rule are creditors providing consumer loans, including mortgage lenders, mortgage brokers, banks and credit unions.  The estimated number of non-bank creditors subject to the proposed joint rule with 20 or fewer employees is 375.  The estimated number of banks and credit unions subject to the proposed joint rule with 20 or fewer employees is four.

  1. Projected Reporting, record-keeping and other administrative costs required for compliance with proposed joint rule, Chapter 240 (Bureau of Consumer Credit Protection) and Chapter 138 (Bureau of Financial Institutions), including the type of professional skill necessary for preparation of the report or record:

If new federal requirements in federal Regulation Z are not incorporated into Maine’s Regulation Z-2, Maine arguably risks losing its exemption from federal Regulation Z under Maine’s Consumer Credit Code, Title 9-A, section 8-107.  This would result in small businesses having to comply directly with the new federal Regulation Z requirements.  Thus, small businesses will be subject to the new federal Regulation Z requirements, whether or not these new federal requirements are incorporated into Maine’s Regulation Z-2.  In light of this, the proposed amendments do not require any additional reporting, record-keeping or other administrative costs required for compliance.  To the extent that the proposed amendments provide clarity to small businesses regarding mortgage lending requirements, record-keeping and other administrative costs may be reduced. 

  1. Brief statement of the probable impact on affected small businesses:

The proposed amendments provide clarity to small businesses regarding truth-in-lending requirements, including credit card and mortgage lending requirements.  Specifically, the proposed amendments “carve out” federal Regulation Z mortgage lending requirements and direct small businesses to follow Maine law.  These amendments should ease compliance burdens thereby having a positive impact on small businesses.   

  1. Description of any less intrusive or less costly, reasonable alternative methods of achieving the purposes of proposed joint rule, Chapter 240 (Bureau of Consumer Credit Protection) and Chapter 138 (Bureau of Financial Institutions):

In order to maintain their exemption from federal Regulation Z, the Bureau of Financial Institutions and Office of Consumer Credit Protection are required to have laws that are “substantially similar to” or “afford greater protection than” federal law.  The proposed amendments represent the least intrusive and least costly method of maintaining this exemption, thereby achieving the purposes of Title 9-A, Maine’s Consumer Credit Code.   

 

 

Last Updated: June 5, 2013