Maryland 2023 Regular Session

Maryland House Bill HB1223 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb1223
6	6
7	7	HOUSE BILL 1223
8	8	N1, D1 EMERGENCY BILL 3lr2863
9	9
10	10	By: Delegates Embry, Feldmark, and Kaufman
11	11	Introduced and read first time: February 10, 2023
12	12	Assigned to: Environment and Transportation
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Foreclosure Actions – Responsibility of Secured Parties and Stay for 2
19	19	Determination of Financial Assistance 3
20	20
21	21	FOR the purpose of requiring the Commissioner of Financial Regulation in the Maryland 4
22	22	Department of Labor to adopt by emergency regulation a certain notice related to 5
23	23	the Maryland Homeowner Assistance Fund; prohibiting, with certain exceptions, a 6
24	24	secured party from initiating or proceeding with a foreclosure for a certain period if 7
25	25	the secured party receives a certain notice; requiring a secured party to make a 8
26	26	certain affidavit to the circuit court responsible for the foreclosure action when the 9
27	27	secured party makes certain filings; requiring the circuit court to award a stay in a 10
28	28	foreclosure action if a certain amount of time has not passed after a certain notice is 11
29	29	made; and generally relating to foreclosure actions for owner–occupied residential 12
30	30	properties in the State. 13
31	31
32	32	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY O F MARYLAND, 14
33	33	That: 15
34	34
35	35	(a) In this Act the following words have the meanings indicated. 16
36	36
37	37	(b) “Financial assistance” means a grant or loan. 17
38	38
39	39	(c) “Fund” means the Maryland Homeowner Assistance Fund operated by the 18
40	40	Department of Housing and Community Development. 19
41	41
42	42	(d) “Residential property” has the meaning stated in § 7–105.1 of the Real 20
43	43	Property Article. 21
44	44
45	45	SECTION 2. AND BE IT FURTHER ENACTED, That : 22
46	46
47	47	(a) Subject to the authority granted under § 10–111(b) of the State Government 23
48	48	Article and § 7–105.1(c) of the Real Property Article, the Commissioner of Financial 24 2 HOUSE BILL 1223
49	49
50	50
51	51	Regulation in the Maryland Department of Labor shall adopt by emergency regulation a 1
52	52	clearly marked notice that includes: 2
53	53
54	54	(1) a description of the Fund; 3
55	55
56	56	(2) the website, address, and phone number where homeowners can learn 4
57	57	about and apply for a grant or loan from the Fund; 5
58	58
59	59	(3) the name, e–mail address, and phone number of the administrator for 6
60	60	the Fund; and 7
61	61
62	62	(4) a statement that if the secured party is notified by the administrator 8
63	63	for the Fund that the mortgagor or grantor has a pending conditionally eligible application 9
64	64	for financial assistance from the Fund, the secured party may not initiate or proceed with 10
65	65	foreclosure of a lien on residential property for 120 days. 11
66	66
67	67	(b) The Commissioner of Financial Regulation shall adopt regulations to ensure 12
68	68	the notice required under subsection (a) of this section remains valid for the duration of 13
69	69	this Act. 14
70	70
71	71	SECTION 3. AND BE IT FURTHER ENACTED, That: 15
72	72
73	73	(a) In this section, “postfile mediation” and “prefile mediation” have the meanings 16
74	74	stated in § 7–105.1 of the Real Property Article. 17
75	75
76	76	(b) (1) This section applies only to a mortgagor or grantor who occupies 18
77	77	residential property subject to a foreclosure action. 19
78	78
79	79	(2) This section does not apply to an action for immediate foreclosure under 20
80	80	§ 7–105.1(b)(2) of the Real Property Article. 21
81	81
82	82	(c) (1) Except as provided in paragraph (2) of this subsection, if a secured party 22
83	83	receives notice from the administrator for the Fund that the mortgagor or grantor has a 23
84	84	pending conditionally eligible application for financial assistance from the Fund, the 24
85	85	secured party may not initiate or proceed with a foreclosure of a lien on residential property 25
86	86	for 120 days. 26
87	87
88	88	(2) A secured party may continue to engage in prefile mediation and 27
89	89	postfile mediation activities with a mortgagor or grantor during the period identified in 28
90	90	paragraph (1) of this subsection. 29
91	91
92	92	(d) (1) A secured party shall include an affidavit when the secured party files 30
93	93	with the court an order to docket, a complaint to foreclose, a motion to strike the request 31
94	94	for postfile mediation, or the documents required under § 7–105.4(c) of the Real Property 32
95	95	Article stating that: 33
96	96
97	97	(i) the secured party did not receive notice from the administrator 34 HOUSE BILL 1223 3
98	98
99	99
100	100	for the Fund that the mortgagor or grantor has a pending conditionally eligible application 1
101	101	for financial assistance from the Fund; or 2
102	102
103	103	(ii) 1. the secured party did receive notice from the 3
104	104	administrator for the Fund that the mortgagor or grantor has a pending conditionally 4
105	105	eligible application for financial assistance from the Fund; and 5
106	106
107	107	2. at least 120 days have passed since the secured party 6
108	108	received the notice identified in item (i) of this paragraph. 7
109	109
110	110	(2) The secured party shall include the affidavit filed with the court under 8
111	111	paragraph (1) of this subsection with any notice of the order to docket, complaint to 9
112	112	foreclose, motion to strike the request for postfile mediation, or foreclosure sale provided to 10
113	113	the mortgagor or grantor by law. 11
114	114
115	115	(3) If the court finds that 120 days have not elapsed since the secured party 12
116	116	received the notice from the administrator for the Fund that the mortgagor or grantor has 13
117	117	a pending conditionally eligible application for financial assistance from the Fund, the court 14
118	118	shall stay the foreclosure action for a period that complies with subsection (c)(1) of this 15
119	119	section. 16
120	120
121	121	SECTION 4. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall take 17
122	122	effect June 1, 2023. 18
123	123
124	124	SECTION 5. AND BE IT FURTHER ENACTED, That, subject to Section 4 of this 19
125	125	Act, this Act is an emergency measure, is necessary for the immediate preservation of the 20
126	126	public health or safety, has been passed by a yea and nay vote supported by three–fifths of 21
127	127	all the members elected to each of the two Houses of the General Assembly, and, except as 22
128	128	provided in Section 4 of this Act, shall take effect from the date it is enacted. It shall remain 23
129	129	effective through June 30, 2026, and, at the end of June 30, 2026, this Act, with no further 24
130	130	action required by the General Assembly, shall be abrogated and of no further force and 25
131	131	effect. 26