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Entries in Rulemaking (3)


Maine Bureau Proposes New Regulation 28: Lending Limits for State-Chartered Institutions

On October 12, 2012, the Maine Bureau of Financial Institutions issued notice that it has proposed a complete repeal and replacement of Regulation 28: Loans to One Borrower Limitations.  Regulation 28 establishes certain lending limits for Maine-chartered financial institutions.  The purpose of the new Regulation is to establish guidelines for determining credit exposure from derivative transactions in connection with loans.  Derivative transactions can include swaps, loans, options and other financial agreements, and are an important tool in managing the risks underlying financial transactions.  Beginning in January of 2013, the Dodd-Frank Act will prohibit state-charted financial institutions from engaging in derivative transactions unless state law requires them to identify and manage credit risks associated with derivative transactions.  The proposed Regulation 28 implements various methods for financial institutions to use in considering these risks, adopting a number of methodologies used in the OCC’s new interim final rule for national banks.

The Bureau anticipates that it may amend the proposed Regulation 28 before it becomes final, to incorporate future amendments to the OCC’s rule.  The deadline for public comment on the new regulation is November 19, 2012.


Mortgage Lending in Maine: Top 11 Changes to Maine’s Mortgage Flipping Rules

On December 7, the Maine Bureau of Credit Protection (BCCP) and the Maine Bureau of Financial Institutions announced significant amendments to BCCP Chapter 550, the state regulation prohibiting mortgage lenders from “flipping” high cost or higher-priced mortgages. The changes conform to a recently enacted State law. Here are the Top 11 changes.

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Maine Regulation Z-2 Officially Repealed

Regulation Z-2 is now officially repealed in Maine. On December 1, 2011, the Maine Bureau of Consumer Credit Protection and Bureau of Financial Institutions jointly announced the conclusion of their rulemaking regarding Regulation Z-2, which was slated for repeal based on recent amendments to Maine’s Consumer Credit Code earlier this year.

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