Attachment “A” to the Reasonable, Tangible Net Benefit and Ability to Pay Rule, AS AMENDED by Public Law 2007, Chapter 471, “An Act Relating to Mortgage Lending and Credit Availability”

STATE OF MAINE – REASONABLE, TANGIBLE NET BENEFIT DISCLOSURE FORM

This disclosure is being provided to you in order to clarify one of the protections required by the “Act to Protect Maine Homeowners from Predatory Lending” enacted in 2007 and amended by “An Act Relating to Mortgage Lending and Credit Availability.”  The law protects borrowers from certain loan brokering and lending practices.  One of the prohibited practices is known as “flipping a residential mortgage loan when making a subprime mortgage loan.”

WHAT IS FLIPPING?  “Flipping” is the making of a subprime mortgage loan (the “new loan”) to a borrower who refinances an existing residential loan when the new loan does not result in a “reasonable, tangible net benefit” to the borrower. 

Borrower name(s):

Property address:

BASED UPON THE REVIEW BY THE LENDER, AND THE MORTGAGE BROKER, IF ONE IS USED, OF ALL OF THE CIRCUMSTANCES RELATED TO THE NEW LOAN AND ANY DEBTS TO BE PAID FROM THE PROCEEDS OF THE NEW LOAN, THE NEW LOAN PROVIDES A REASONABLE, TANGIBLE NET BENEFIT TO YOU AS FOLLOWS:

Loan Information

	New Loan	Old Loan	
Monthly payment amount
			
Length of repayment period			
Amount of cash out (or paid to others)			
Interest rate or weighted average interest rate			
Type of loan (Adjustable Rate Loan or Fixed Rate Loan)	Adjustable   Fixed
(Circle one.)	Adjustable   Fixed
(Circle one.)	
Bona fide personal need, as reasonably determined by the borrower? 	   Yes       No
(Circle one.)		

CREDITOR TO COMPLETE:
The borrower received the following reasonable, tangible net benefit from the new loan (include bona fide personal need, if applicable):
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

After reviewing all relevant information, the lender and mortgage broker, if one was used, confirm that they have performed the analysis of the applicable reasonable, tangible net benefit as identified above and that they have explained the analysis to the borrower.  The borrower(s) acknowledge(s) that the lender and mortgage broker, if one was used, have identified and explained the reasonable, tangible net benefit(s). 

FOR LENDERS:  

I have reviewed and explained this Form and the answers provided therein to the borrower.

_____________________     ________,___________
Agent/Loan Officer’s printed name	Title

______________________________     	___________
Agent/Loan Officer’s signature	Date

On behalf of:  _______________________________
(Name of Lender)

FOR LOAN BROKERS:

I have reviewed and explained this Form and the answers provided therein to the borrower.

_____________________      ______,_____________
Agent/Loan Officer’s printed name	Title

______________________________	___________
Agent/Loan Officer’s signature	Date

On behalf of:  ________________________________
  (Name of Mortgage Broker)

_______________________			__________________________
Borrower’s printed name			Co-Borrower’s printed name

_______________________ 		__________________________
Borrower’s signature			Co-Borrower’s signature

Date:__________________			Date:_____________________

* If the terms of the refinancing change after the mortgage broker explains its answers to the borrower and signs this form, the lender shall explain its answers to the borrower and sign a new form.

CONSUMERS:

If you have questions regarding your loan or creditor, please contact one of the following Bureaus.

The Maine Bureau of Financial Institutions regulates state-chartered banks and credit unions. Its website address is http://www.maine.gov/pfr/financialinstitutions/, and its toll-free telephone number, if calling in Maine, is 1-800-965-5235.

The Bureau of Consumer Credit Protection regulates mortgage companies and loan brokers. Its website address is http://www.Credit.Maine.gov, and its toll-free telephone number, if calling in Maine, is 1-800-332-8529.