Maryland 2024 Regular Session

Maryland House Bill HB247 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	hb0247
6	6
7	7	HOUSE BILL 247
8	8	N1 4lr0233
9	9	(PRE–FILED) CF 4lr0234
10	10	By: Chair, Environment and Transportation Committee (By Request –
11	11	Departmental – Labor)
12	12	Requested: September 15, 2023
13	13	Introduced and read first time: January 10, 2024
14	14	Assigned to: Environment and Transportation
15	15
16	16	A BILL ENTITLED
17	17
18	18	AN ACT concerning 1
19	19
20	20	Real Property – Residential Foreclosures – Procedures 2
21	21
22	22	FOR the purpose of repealing the use of a preliminary loss mitigation affidavit in an order 3
23	23	to docket or complaint to foreclose a mortgage or deed of trust on residential property; 4
24	24	altering certain requirements for the filing of an action to foreclose a mortgage or deed 5
25	25	of trust on residential property and altering certain requirements for an order to docket 6
26	26	or a complaint to foreclose a mortgage or deed of trust; establishing that a copy of a 7
27	27	notice of intent to foreclose is not a public record and is not subject to the Public 8
28	28	Information Act; authorizing the Commissioner of Financial Regulation to enter into 9
29	29	certain information sharing agreements with other State agencies and establishing 10
30	30	requirements for the agreements; altering certain requirements and procedures for 11
31	31	foreclosure mediation in residential foreclosure proceedings; requiring a secured party 12
32	32	to provide certain loan–related correspondence in order to enforce a materially 13
33	33	delinquent mortgage, subject to certain exceptions; and generally relating to 14
34	34	foreclosures on residential property. 15
35	35
36	36	BY repealing and reenacting, with amendments, 16
37	37	Article – Real Property 17
38	38	Section 7–105.1(a), (b), (e), (h) through (k), and (q) through (s) 18
39	39	Annotated Code of Maryland 19
40	40	(2023 Replacement Volume) 20
41	41
42	42	BY repealing and reenacting, without amendments, 21
43	43	Article – Real Property 22
44	44	Section 7–105.1(c)(1) through (3) 23
45	45	Annotated Code of Maryland 24
46	46	(2023 Replacement Volume) 25
47	47
48	48	BY adding to 26 2 HOUSE BILL 247
49	49
50	50
51	51	Article – Real Property 1
52	52	Section 7–105.1(c)(7) and (8) and (q) and 7–105.19 2
53	53	Annotated Code of Maryland 3
54	54	(2023 Replacement Volume) 4
55	55
56	56	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
57	57	That the Laws of Maryland read as follows: 6
58	58
59	59	Article – Real Property 7
60	60
61	61	7–105.1. 8
62	62
63	63	(a) (1) In this section the following words have the meanings indicated. 9
64	64
65	65	(2) (i) “Certified community development financial institution” means 10
66	66	a community development financial institution that is certified by the Community 11
67	67	Development Financial Institutions Fund in the U.S. Department of the Treasury under 12
68	68	12 U.S.C. § 4701 et seq. 13
69	69
70	70	(ii) “Certified community development financial institution” 14
71	71	includes any company that controls, is controlled by, or is under common control with a 15
72	72	certified community development financial institution. 16
73	73
74	74	(3) “Final loss mitigation affidavit” means an affidavit that: 17
75	75
76	76	(i) Is made by a person authorized to act on behalf of a secured party 18
77	77	of a mortgage or deed of trust on owner–occupied residential property that is the subject of 19
78	78	a foreclosure action; 20
79	79
80	80	(ii) Certifies the completion of the final determination of loss 21
81	81	mitigation analysis in connection with the mortgage or deed of trust; and 22
82	82
83	83	(iii) If denied, provides an explanation for the denial of a loan 23
84	84	modification or other loss mitigation. 24
85	85
86	86	(4) “Foreclosure mediation” means a conference at which the parties in a 25
87	87	foreclosure action, their attorneys, additional representatives of the parties, or a 26
88	88	combination of those persons appear before an impartial individual to discuss the positions 27
89	89	of the parties in an attempt to reach agreement on a loss mitigation program for the 28
90	90	mortgagor or grantor. 29
91	91
92	92	(5) “Housing counseling services” means assistance provided to mortgagors 30
93	93	or grantors by nonprofit and governmental entities that are identified on a list maintained 31
94	94	by the Department of Housing and Community Development. 32
95	95
96	96	(6) “Loss mitigation analysis” means an evaluation of the facts and 33
97	97	circumstances of a loan secured by owner–occupied residential property to determine: 34 HOUSE BILL 247 3
98	98
99	99
100	100
101	101	(i) Whether a mortgagor or grantor qualifies for a loan modification; 1
102	102	and 2
103	103
104	104	(ii) If there will be no loan modification, whether any other loss 3
105	105	mitigation program may be made available to the mortgagor or grantor. 4
106	106
107	107	(7) “Loss mitigation program” means an option in connection with a loan 5
108	108	secured by owner–occupied residential property that: 6
109	109
110	110	(i) Avoids foreclosure through loan modification or other changes to 7
111	111	existing loan terms that are intended to allow the mortgagor or grantor to stay in the 8
112	112	property; 9
113	113
114	114	(ii) Avoids foreclosure through a short sale, deed in lieu of 10
115	115	foreclosure, or other alternative that is intended to simplify the mortgagor’s or grantor’s 11
116	116	relinquishment of ownership of the property; or 12
117	117
118	118	(iii) Lessens the harmful impact of foreclosure on the mortgagor or 13
119	119	grantor. 14
120	120
121	121	(8) “Owner–occupied residential property” means residential property in 15
122	122	which at least one unit is occupied by an individual who: 16
123	123
124	124	(i) Has an ownership interest in the property; and 17
125	125
126	126	(ii) Uses the property as the individual’s primary residence. 18
127	127
128	128	(9) “Postfile mediation” means foreclosure mediation that occurs in 19
129	129	accordance with subsection (j) of this section after the date on which the order to docket or 20
130	130	complaint to foreclose is filed. 21
131	131
132	132	(10) “Prefile mediation” means foreclosure mediation that occurs in 22
133	133	accordance with subsection (d) of this section before the date on which the order to docket 23
134	134	or complaint to foreclose is filed. 24
135	135
136	136	[(11) “Preliminary loss mitigation affidavit” means an affidavit that: 25
137	137
138	138	(i) Is made by a person authorized to act on behalf of a secured party 26
139	139	of a mortgage or deed of trust on owner–occupied residential property that is the subject of 27
140	140	a foreclosure action; 28
141	141
142	142	(ii) Certifies the status of an incomplete loss mitigation analysis in 29
143	143	connection with the mortgage or deed of trust; and 30
144	144
145	145	(iii) Includes reasons why the loss mitigation analysis is incomplete.] 31
146	146	4 HOUSE BILL 247
147	147
148	148
149	149	[(12)] (11) “Residential property” means real property improved by four or 1
150	150	fewer single family dwelling units that are designed principally and are intended for human 2
151	151	habitation. 3
152	152
153	153	(b) (1) Except as provided in paragraph (2) of this subsection, an action to 4
154	154	foreclose a mortgage or deed of trust on residential property may not be filed until the later 5
155	155	of: 6
156	156
157	157	(i) [90] 120 days after a default in a condition on which the 7
158	158	mortgage or deed of trust provides that a sale may be made; or 8
159	159
160	160	(ii) 45 days after the LATER OF: 9
161	161
162	162	1. THE DATE THE notice of intent to foreclose required 10
163	163	under subsection (c) of this section is sent TO THE MORTGAGOR OR GRANTOR AND THE 11
164	164	RECORD OWNER ; OR 12
165	165
166	166	2. THE DATE A COPY OF TH E NOTICE OF INTENT T O 13
167	167	FORECLOSE IS SENT TO THE COMMISSIONER OF FINANCIAL REGULATION IN 14
168	168	ACCORDANCE WITH SUBSECTION (C)(3) OF THIS SECTION. 15
169	169
170	170	(2) (i) The secured party may petition the circuit court for leave to 16
171	171	immediately commence an action to foreclose the mortgage or deed of trust if: 17
172	172
173	173	1. The loan secured by the mortgage or deed of trust was 18
174	174	obtained by fraud or deception; 19
175	175
176	176	2. No payments have ever been made on the loan secured by 20
177	177	the mortgage or deed of trust; 21
178	178
179	179	3. The property subject to the mortgage or deed of trust has 22
180	180	been destroyed; 23
181	181
182	182	4. The default occurred after the stay has been lifted in a 24
183	183	bankruptcy proceeding; or 25
184	184
185	185	5. The property subject to the mortgage or deed of trust is 26
186	186	property that is vacant and abandoned as provided under § 7–105.18 of this subtitle. 27
187	187
188	188	(ii) The court may rule on the petition with or without a hearing. 28
189	189
190	190	(iii) If the petition is granted: 29
191	191
192	192	1. The action may be filed at any time after a default in a 30
193	193	condition on which the mortgage or deed of trust provides that a sale may be made; and 31
194	194	HOUSE BILL 247 5
195	195
196	196
197	197	2. The secured party need not send the written notice of 1
198	198	intent to foreclose required under subsection (c) of this section. 2
199	199
200	200	(c) (1) Except as provided in subsection (b)(2)(iii) of this section, at least 45 3
201	201	days before the filing of an action to foreclose a mortgage or deed of trust on residential 4
202	202	property, the secured party shall send a written notice of intent to foreclose to the 5
203	203	mortgagor or grantor and the record owner. 6
204	204
205	205	(2) The notice of intent to foreclose shall be sent: 7
206	206
207	207	(i) By certified mail, postage prepaid, return receipt requested, 8
208	208	bearing a postmark from the United States Postal Service; and 9
209	209
210	210	(ii) By first–class mail. 10
211	211
212	212	(3) A copy of the notice of intent to foreclose shall be sent to the 11
213	213	Commissioner of Financial Regulation. 12
214	214
215	215	(7) (I) A COPY OF A NOTICE OF INTENT TO FORECLOSE SENT TO 13
216	216	THE COMMISSIONER OF FINANCIAL REGULATION UNDER PARAGRAPH (3) OF THIS 14
217	217	SUBSECTION: 15
218	218
219	219	1. IS NOT A PUBLIC RECOR D AS DEFINED IN § 4–101 OF 16
220	220	THE GENERAL PROVISIONS ARTICLE; AND 17
221	221
222	222	2. IS NOT SUBJECT TO TITLE 4 OF THE GENERAL 18
223	223	PROVISIONS ARTICLE. 19
224	224
225	225	(II) THE COMMISSIONER OF FINANCIAL REGULATION MAY 20
226	226	AUTHORIZE ACCESS TO A COPY OF A NOTICE O F INTENT TO FORECLOS E ONLY TO: 21
227	227
228	228	1. A MORTGAGOR OR GRANTOR; 22
229	229
230	230	2. A RECORD OWNER ; 23
231	231
232	232	3. A LEGAL REPRESENTATIVE OR DESIGNEE OF THE 24
233	233	MORTGAGOR OR GRANTOR OR THE RECORD OWNER ; OR 25
234	234
235	235	4. A STATE AGENCY IN ACCOR DANCE WITH AN 26
236	236	INFORMATION SHARING AGREEMENT AUTHORIZED UNDER PAR AGRAPH (8) OF THIS 27
237	237	SUBSECTION. 28
238	238
239	239	(8) (I) THE COMMISSIONER OF FINANCIAL REGULATION MAY 29
240	240	ENTER INTO AN INFORMATION SHARING AGREEMENT WITH ANY STATE AGENCY TO 30
241	241	SHARE COPIES OF A NO TICE OF INTENT TO FO RECLOSE OR INFORMATION 31 6 HOUSE BILL 247
242	242
243	243
244	244	CONTAINED IN A NOTIC E OF INTENT TO FOREC LOSE ONLY IF THE INFORMATION 1
245	245	SHARING AGREEMENT PROHIBIT S THE AGENC Y FROM DISCLOSING ANY SHARED 2
246	246	INFORMATION WITHOUT THE PRIOR WR ITTEN CONSENT OF THE COMMISSIONER OF 3
247	247	FINANCIAL REGULATION. 4
248	248
249	249	(II) INFORMATION SHARED IN ACCORDANCE WITH AN 5
250	250	INFORMATION SHARING AGREEMENT AUTHORI ZED UNDER THIS PARAG RAPH: 6
251	251
252	252	1. IS NOT A PUBLIC RECOR D AS DEFINED IN § 4–101 OF 7
253	253	THE GENERAL PROVISIONS ARTICLE; 8
254	254
255	255	2. IS NOT SUBJECT TO TITLE 4 OF THE GENERAL 9
256	256	PROVISIONS ARTICLE; AND 10
257	257
258	258	3. MAY NOT BE DISCLOSED BY A STATE AGENCY UNDER 11
259	259	A SUBPOENA, A DISCOVERY, OR AN ADMISSION INTO EVIDENCE IN PRIVATE CIVIL 12
260	260	LITIGATION OR ADMINI STRATIVE PROCESS WIT HOUT THE PRIOR WRITT EN CONSENT 13
261	261	OF THE COMMISSIONER OF FINANCIAL REGULATION. 14
262	262
263	263	(e) An order to docket or a complaint to foreclose a mortgage or deed of trust on 15
264	264	residential property shall: 16
265	265
266	266	(1) Include: 17
267	267
268	268	(i) If applicable, the license number of: 18
269	269
270	270	1. The mortgage originator; and 19
271	271
272	272	2. The mortgage lender; and 20
273	273
274	274	(ii) An affidavit stating: 21
275	275
276	276	1. The date on which the default occurred and the nature of 22
277	277	the default; [and] 23
278	278
279	279	2. WHETHER THE DEBT INST RUMENT CONSTITUTES A 24
280	280	MATERIALLY DELINQUEN T MORTGAGE WITHIN TH E MEANING OF § 7–105.19 OF THIS 25
281	281	SUBTITLE; 26
282	282
283	283	3. IF THE DEBT INSTRUMEN T IS A MATERIALLY 27
284	284	DELINQUENT MORTGAGE WITHIN THE MEANING O F § 7–105.19 OF THIS SUBTITLE , 28
285	285	THAT THE SECURED PAR TY HAS SATISFIED ANY REQUIREMENTS FOR INS TITUTING 29
286	286	FORECLOSURE UNDER THAT SECTION ; AND 30
287	287
288	288	[2.] 4. If applicable, that: 31 HOUSE BILL 247 7
289	289
290	290
291	291
292	292	A. A notice of intent to foreclose was sent to the mortgagor or 1
293	293	grantor in accordance with subsection (c) of this section and the date on which the notice 2
294	294	was sent; and 3
295	295
296	296	B. At the time the notice of intent to foreclose was sent, the 4
297	297	contents of the notice of intent to foreclose were accurate; and 5
298	298
299	299	(2) Be accompanied by: 6
300	300
301	301	(i) The original or a certified copy of the mortgage or deed of trust; 7
302	302
303	303	(ii) A statement of the debt remaining due and payable supported by 8
304	304	an affidavit of the plaintiff or the secured party or the agent or attorney of the plaintiff or 9
305	305	secured party; 10
306	306
307	307	(iii) A copy of the debt instrument accompanied by an affidavit 11
308	308	certifying ownership of the debt instrument; 12
309	309
310	310	(iv) If applicable, the original or a certified copy of the assignment of 13
311	311	the mortgage for purposes of foreclosure or the deed of appointment of a substitute trustee; 14
312	312
313	313	(v) If any defendant is an individual, an affidavit that is in 15
314	314	compliance with § 521 of the Servicemembers Civil Relief Act, 50 U.S.C. App. § 501 et seq.; 16
315	315
316	316	(vi) If applicable, a copy of the notice of intent to foreclose; 17
317	317
318	318	(vii) If the secured party and mortgagor or grantor have elected to 18
319	319	participate in prefile mediation, the report of the prefile mediation issued by the Office of 19
320	320	Administrative Hearings; 20
321	321
322	322	(viii) If the secured party and the mortgagor or grantor have not 21
323	323	elected to participate in prefile mediation, a statement that the parties have not elected to 22
324	324	participate in prefile mediation; 23
325	325
326	326	(ix) In addition to any other filing fees required by law, a filing fee in 24
327	327	the amount of $300; and 25
328	328
329	329	(x) 1. If the loss mitigation analysis has been completed, subject 26
330	330	to subsection (g) of this section, a final loss mitigation affidavit in the form prescribed by 27
331	331	regulation adopted by the Commissioner of Financial Regulation; and 28
332	332
333	333	2. If the loss mitigation analysis has not been completed, a 29
334	334	[preliminary loss mitigation affidavit in the form prescribed by regulation adopted by the 30
335	335	Commissioner of Financial Regulation] STATEMENT EXPLAINING WHY THE LOSS 31
336	336	MITIGATION ANALYSIS HAS NOT BEEN COMPLETED . 32
337	337	8 HOUSE BILL 247
338	338
339	339
340	340	(h) (1) A copy of the order to docket or complaint to foreclose on residential 1
341	341	property and all other papers filed with it in the form and sequence as prescribed by 2
342	342	regulations adopted by the Commissioner of Financial Regulation, accompanied by the 3
343	343	documents required under paragraphs [(2), (3), and (4)] (2) AND (3) of this subsection, 4
344	344	shall be served on the mortgagor or grantor by: 5
345	345
346	346	(i) Personal delivery of the papers to the mortgagor or grantor; or 6
347	347
348	348	(ii) Leaving the papers with a resident of suitable age and discretion 7
349	349	at the mortgagor’s or grantor’s dwelling house or usual place of abode. 8
350	350
351	351	(2) The service of documents under paragraph (1) of this subsection shall 9
352	352	be accompanied by a separate, clearly marked notice, in the form prescribed by regulation 10
353	353	adopted by the Commissioner of Financial Regulation, that states: 11
354	354
355	355	(i) The significance of the order to docket or a complaint to foreclose; 12
356	356
357	357	(ii) The options for the mortgagor or grantor to take, including 13
358	358	housing counseling services and financial assistance resources the mortgagor or grantor 14
359	359	may consult; and 15
360	360
361	361	(iii) In the case of a mortgagor or grantor who has participated in 16
362	362	prefile mediation, that the mortgagor or grantor is not entitled to postfile mediation except 17
363	363	as otherwise provided in the prefile mediation agreement. 18
364	364
365	365	(3) If the order to docket or complaint to foreclose is NOT accompanied by 19
366	366	a [preliminary] FINAL loss mitigation affidavit, the service of documents under paragraph 20
367	367	(1) of this subsection shall be accompanied by a loss mitigation application form and any 21
368	368	other supporting documents as prescribed by regulation adopted by the Commissioner of 22
369	369	Financial Regulation. 23
370	370
371	371	[(4) (i) Except as provided in subparagraph (ii) of this paragraph, if the 24
372	372	order to docket or complaint to foreclose is accompanied by a final loss mitigation affidavit 25
373	373	and concerns owner–occupied residential property, the service of documents under 26
374	374	paragraph (1) of this subsection shall be accompanied by a request for postfile mediation 27
375	375	form and any other supporting documents as prescribed by regulation adopted by the 28
376	376	Commissioner of Financial Regulation. 29
377	377
378	378	(ii) The order to docket or complaint to foreclose may exclude the 30
379	379	request for postfile mediation form if: 31
380	380
381	381	1. The mortgagor or grantor has participated in prefile 32
382	382	mediation and the prefile mediation agreement does not give the mortgagor or grantor the 33
383	383	right to participate in postfile mediation; or 34
384	384
385	385	2. The property subject to the mortgage or deed of trust is not 35
386	386	owner–occupied.] 36 HOUSE BILL 247 9
387	387
388	388
389	389
390	390	[(5)] (4) If at least two good faith efforts to serve the mortgagor or grantor 1
391	391	under paragraph (1) of this subsection on different days have not succeeded, the plaintiff 2
392	392	may effect service by: 3
393	393
394	394	(i) Filing an affidavit with the court describing the good faith efforts 4
395	395	to serve the mortgagor or grantor; and 5
396	396
397	397	(ii) 1. Mailing a copy of all the documents required to be served 6
398	398	under paragraph (1) of this subsection by certified mail, return receipt requested, and 7
399	399	first–class mail to the mortgagor’s or grantor’s last known address and, if different, to the 8
400	400	address of the residential property subject to the mortgage or deed of trust; and 9
401	401
402	402	2. Posting a copy of all the documents required to be served 10
403	403	under paragraph (1) of this subsection in a conspicuous place on the residential property 11
404	404	subject to the mortgage or deed of trust. 12
405	405
406	406	[(6)] (5) The individual making service of documents under this 13
407	407	subsection shall file proof of service with the court in accordance with the Maryland Rules. 14
408	408
409	409	(i) (1) If the order to docket or complaint to foreclose is NOT accompanied by 15
410	410	a [preliminary] FINAL loss mitigation affidavit, the secured party, at least 30 days before 16
411	411	the date of a foreclosure sale, shall: 17
412	412
413	413	(i) File with the court a final loss mitigation affidavit in the form 18
414	414	prescribed by regulation adopted by the Commissioner of Financial Regulation; and 19
415	415
416	416	(ii) Send A COPY OF THE FINAL LOSS MITIGATION AFFI DAVIT to 20
417	417	the mortgagor or grantor by first class and by certified mail[: 21
418	418
419	419	1. A copy of the final loss mitigation affidavit; and 22
420	420
421	421	2. A request for postfile mediation form and supporting 23
422	422	documents as provided under subsection (h)(4) of this section]. 24
423	423
424	424	(2) A final loss mitigation affidavit shall be filed under this subsection no 25
425	425	earlier than 28 days after the order to docket or complaint to foreclose is served on the 26
426	426	mortgagor or grantor. 27
427	427
428	428	(j) (1) (i) This paragraph applies to PROCEEDINGS IN WHICH a 28
429	429	mortgagor or grantor [who]: 29
430	430
431	431	1. Has not participated in prefile mediation; or 30
432	432	10 HOUSE BILL 247
433	433
434	434
435	435	2. Has participated in prefile mediation that resulted in a 1
436	436	prefile mediation agreement that gives the mortgagor or grantor the right to participate in 2
437	437	postfile mediation. 3
438	438
439	439	(ii) In a foreclosure action on owner–occupied residential property, 4
440	440	the [mortgagor or grantor may] SECURED PARTY SHALL file with the court a completed 5
441	441	[request] NOTICE OF QUALIFICATION for postfile mediation [not later than] ON A FORM 6
442	442	PRESCRIBED BY THE COMMISSIONER OF FINANCIAL REGULATION FOLLOWING : 7
443	443
444	444	1. If SERVICE INCLUDED A C OPY OF the final loss 8
445	445	mitigation affidavit [was delivered along with service of the copy of], SERVICE OF the order 9
446	446	to docket or complaint to foreclose under subsection (h) of this section[, 25 days after that 10
447	447	service on the mortgagor or grantor]; or 11
448	448
449	449	2. [If the final loss mitigation affidavit was mailed] 12
450	450	MAILING OF THE FINAL LOSS MITIGATION AFFI DAVIT as provided in subsection (i) of 13
451	451	this section[, 25 days after the mailing of the final loss mitigation affidavit]. 14
452	452
453	453	(iii) 1. A [request] NOTICE OF QUALIFICATI ON for postfile 15
454	454	mediation shall be accompanied by a filing fee of $50. 16
455	455
456	456	2. The court may reduce or waive the filing fee under 17
457	457	subsubparagraph 1 of this subparagraph if the mortgagor or grantor is eligible for a 18
458	458	reduction or waiver under the Maryland Legal Services guidelines. 19
459	459
460	460	3. A SECURED PARTY MAY CO LLECT THE $50 FILING FEE 20
461	461	PAID UNDER SUBSUBPARAGRAPH 1 OF THIS SUBPARAGRAPH : 21
462	462
463	463	A. BY INCLUDING THE PAYMEN T OBLIGATION IN ANY 22
464	464	POSTFILE MEDIATION A GREEMENT; OR 23
465	465
466	466	B. FROM THE PROCEEDS OF ANY FORECLOSURE SALE OF 24
467	467	THE PROPERTY . 25
468	468
469	469	(iv) The [mortgagor or grantor] SECURED PARTY shall mail a copy 26
470	470	of the [request] NOTICE OF QUALIFICATION for postfile mediation to the [secured party’s 27
471	471	foreclosure attorney] MORTGAGOR OR GRANTOR WITH ANY ADDITIONAL DOCUMENTS 28
472	472	REQUIRED BY THE COMMISSIONER OF FINANCIAL REGULATION. 29
473	473
474	474	(2) (i) [The] NOTWITHSTANDING THE S ECURED PARTY ’S NOTICE 30
475	475	OF QUALIFICATION FOR POSTFILE MEDIATION U NDER PARAGRAPH (1)(II) OF THIS 31
476	476	SUBSECTION, THE secured party may file a motion to [strike the request for] WAIVE 32
477	477	postfile mediation in accordance with the Maryland Rules. 33
478	478	HOUSE BILL 247 11
479	479
480	480
481	481	(ii) The motion to [strike] WAIVE must be accompanied by an 1
482	482	affidavit that sets forth the reasons why postfile mediation is not appropriate. 2
483	483
484	484	(iii) The secured party shall mail a copy of the motion to [strike] 3
485	485	WAIVE and the accompanying affidavit to the mortgagor or grantor. 4
486	486
487	487	(iv) There is a presumption that a mortgagor or grantor is entitled to 5
488	488	postfile mediation with respect to owner–occupied residential property unless: 6
489	489
490	490	1. Good cause is shown why postfile mediation is not 7
491	491	appropriate; or 8
492	492
493	493	2. [The] AFTER RECEIVING SERVICE OF THE ORDER TO 9
494	494	DOCKET, THE mortgagor or grantor [participated in prefile mediation and the prefile 10
495	495	mediation agreement does not give the mortgagor or grantor the right to participate in] 11
496	496	EXECUTES A WRITTEN W AIVER OF postfile mediation ON A FORM PR ESCRIBED BY 12
497	497	REGULATION ADOPTED B Y THE COMMISSIONER OF FINANCIAL REGULATION. 13
498	498
499	499	(3) (i) The mortgagor or grantor may file a response to the motion to 14
500	500	[strike] WAIVE within 15 days. 15
501	501
502	502	(ii) The mortgagor or grantor shall mail a copy of the response to the 16
503	503	foreclosure attorney. 17
504	504
505	505	(iii) If the court grants the motion to [strike] WAIVE, the court shall 18
506	506	instruct the Office of Administrative Hearings to cancel any scheduled postfile mediation. 19
507	507
508	508	(k) (1) Within 5 days after receipt of a [request] NOTICE OF QUALIFICATION 20
509	509	for postfile mediation, the court shall transmit the [request] NOTICE to the Office of 21
510	510	Administrative Hearings for scheduling. 22
511	511
512	512	(2) (i) Within 60 days after transmittal of the [request] NOTICE OF 23
513	513	QUALIFICATION for foreclosure mediation, the Office of Administrative Hearings shall 24
514	514	conduct a foreclosure mediation. 25
515	515
516	516	(ii) For good cause, the Office of Administrative Hearings may 26
517	517	extend the time for completing the foreclosure mediation for a period not exceeding 30 days 27
518	518	or, if all parties agree, for a longer period of time. 28
519	519
520	520	(III) UNLESS A MORTGAGOR OR GRANTOR REQUESTS 29
521	521	FORECLOSURE MEDIATIO N TO BE CONDUCTED IN PERSON , FORECLOSURE 30
522	522	MEDIATION SHALL BE C ONDUCTED BY ELECTRONIC MEANS IN ACCORDANCE WITH § 31
523	523	10–211 OF THE STATE GOVERNMENT ARTICLE. 32
524	524	12 HOUSE BILL 247
525	525
526	526
527	527	(3) The Office of Administrative Hearings shall send notice of the 1
528	528	scheduled foreclosure mediation to the foreclosure attorney, the secured party, and the 2
529	529	mortgagor or grantor. 3
530	530
531	531	(4) The notice from the Office of Administrative Hearings shall: 4
532	532
533	533	(i) Include instructions regarding the documents and information, 5
534	534	as required by regulations adopted by the Commissioner of Financial Regulation, that must 6
535	535	be provided by each party to the other party and to the mediator; [and] 7
536	536
537	537	(ii) Require the information and documents to be provided no later 8
538	538	than 20 days before the scheduled date of the foreclosure mediation; 9
539	539
540	540	(III) INCLUDE INSTRUCTIONS FOR ACCESSING FORECL OSURE 10
541	541	MEDIATION BY ELECTRO NIC MEANS; 11
542	542
543	543	(IV) ADVISE THE MORTGAGOR OR GRANTOR THAT THEY MAY 12
544	544	REQUEST IN –PERSON FORECLOSURE M EDIATION IN LIEU OF MEDIATION BY 13
545	545	ELECTRONIC MEANS ; AND 14
546	546
547	547	(V) PROVIDE A FORM WITH I NSTRUCTIONS FOR THE 15
548	548	MORTGAGOR OR GRANTOR TO REQUEST IN–PERSON FORECLOSURE MEDIATION. 16
549	549
550	550	(Q) (1) IF THE COURT DISMISSE S, OR A SECURED PARTY W ITHDRAWS, AN 17
551	551	ORDER TO DOCKET , THE SECURED PARTY SH ALL SUBMIT A NOTICE OF TERMINAT ION 18
552	552	OF ORDER TO DOCKET TO THE FORECLOSED PROPERTY REGISTRY ESTABLISHED 19
553	553	BY THE COMMISSIONER OF FINANCIAL REGULATION UNDER § 7–105.14 OF THIS 20
554	554	SUBTITLE. 21
555	555
556	556	(2) THE NOTICE OF TERMINA TION SHALL BE IN A F ORM AND CONTAIN 22
557	557	INFORMATION PRESCRIB ED BY REGULATIONS AD OPTED BY THE COMMISSIONER OF 23
558	558	FINANCIAL REGULATION. 24
559	559
560	560	(3) A NOTICE OF TERMINATIO N FILED IN ACCORDANC E WITH THIS 25
561	561	SECTION: 26
562	562
563	563	(I) IS NOT A PUBLIC RECOR D AS DEFINED IN § 4–101 OF THE 27
564	564	GENERAL PROVISIONS ARTICLE; AND 28
565	565
566	566	(II) IS NOT SUBJECT TO TITLE 4 OF THE GENERAL PROVISIONS 29
567	567	ARTICLE. 30
568	568
569	569	[(q)] (R) An action for failure to comply with the provisions of this section shall 31
570	570	be brought within 3 years after the date of the order ratifying the sale. 32
571	571	HOUSE BILL 247 13
572	572
573	573
574	574	[(r)] (S) Revenue collected from the filing fees required under subsections 1
575	575	(e)(2)(ix) and (j)(1)(iii) of this section shall be distributed to the Housing Counseling and 2
576	576	Foreclosure Mediation Fund established under § 4–507 of the Housing and Community 3
577	577	Development Article. 4
578	578
579	579	[(s)] (T) The Commissioner of Financial Regulation may adopt additional 5
580	580	regulations necessary to carry out the requirements of this section. 6
581	581
582	582	7–105.19. 7
583	583
584	584	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 8
585	585	INDICATED. 9
586	586
587	587	(2) “BILLING CYCLE” MEANS: 10
588	588
589	589	(I) IF A MORTGAGE REQUIRE S PERIODIC PAYMENTS AT 11
590	590	INTERVALS OF 3 MONTHS OR LESS , THE INTERVAL BETWEEN THE DAYS OR DATES OF 12
591	591	REGULAR PERIODIC PAY MENTS REQUIRED BY TH E TERMS OF THE MORTGAGE ; OR 13
592	592
593	593	(II) IF THE MORTGAGE TERMS DO NOT REQUIRE PERIO DIC 14
594	594	PAYMENTS OR REQUIRE PERIODIC PAYMENTS ON INTERVALS GREATER TH AN 3 15
595	595	MONTHS, EVERY 3 MONTHS. 16
596	596
597	597	(3) “LOAN–RELATED CORRESPONDEN CE” MEANS WRITTEN 17
598	598	COMMUNICATION FROM A SECURED PARTY TO A MORTGAGOR THAT : 18
599	599
600	600	(I) IF THE SECURED PARTY IS R EQUIRED TO PROVIDE 19
601	601	PERIODIC STATEMENTS UNDER 12 C.F.R. § 1026.41, COMPLIES WITH THE 20
602	602	REQUIREMENTS OF THAT PROVISION; OR 21
603	603
604	604	(II) IF THE SECURED PARTY IS NOT REQUIRED TO P ROVIDE 22
605	605	PERIODIC STATEMENTS UNDER 12 C.F.R. § 1026.41, CONTAINS THE FOLLOWING: 23
606	606
607	607	1. THE NAME AND CONTACT INFORMATION OF THE 24
608	608	SECURED PARTY ; 25
609	609
610	610	2. THE CURRENT AMOUNT OF THE OUTSTANDING 26
611	611	PRINCIPAL BALANCE ; 27
612	612
613	613	3. THE CURRENT INTEREST RATE IN EFFECT; 28
614	614
615	615	4. THE AMOUNT CURRENTLY DUE DISAGGREGATED BY 29
616	616	PRINCIPAL, INTEREST, CHARGES, AND FEES; AND 30
617	617	14 HOUSE BILL 247
618	618
619	619
620	620	5. THE LENGTH OF ANY PAY MENT DELINQUENCY , 1
621	621	INCLUDING THE DATE O F LAST PAYMENT . 2
622	622
623	623	(4) “MATERIALLY DELINQUENT MORTGAGE” MEANS A MORTGAGE ON 3
624	624	WHICH NO PAYMENTS HA VE BEEN MADE BY A PARTY, OTHER THAN THE SECUR ED 4
625	625	PARTY, IN THE PRECEDING 5 YEARS, EXCLUDING ANY PERIOD OF TIME IN WHICH A 5
626	626	SECURED PARTY COULD NOT INSTITUTE A FORECLOSURE PROCEEDI NG DUE TO AN 6
627	627	EXECUTIVE ORDER OR OTHER SIMILAR OFFICIAL ACTION RESTRICTING 7
628	628	FORECLOSURE ACTIONS . 8
629	629
630	630	(5) “MORTGAGE” MEANS ANY MORTGAGE O R DEED OF TRUST 9
631	631	ENCUMBERING OWNER –OCCUPIED RESIDENTIAL PROPERTY. 10
632	632
633	633	(6) “MORTGAGOR” MEANS ANY PARTY SIGNING A MORTGAGE AS A 11
634	634	MORTGAGOR OR A DEED OF TRUST AS A G RANTOR. 12
635	635
636	636	(7) “OWNER–OCCUPIED RESIDENTIAL PROPERTY” HAS THE MEANING 13
637	637	STATED IN § 7–105.1 OF THIS SUBTITLE. 14
638	638
639	639	(8) “RESIDENTIAL PROPERTY ” HAS THE MEANING STAT ED IN § 15
640	640	7–105.1 OF THIS SUBTITLE. 16
641	641
642	642	(9) “SECURED PARTY ” MEANS AN OWNER , A SERVICER, OR ANY 17
643	643	OTHER PERSON ENTITLE D TO ENFORCE A MORTG AGE OR A DEED OF TRUST. 18
644	644
645	645	(B) (1) THIS SUBSECTION MAY NOT BE INTERPRET ED TO: 19
646	646
647	647	(I) PROHIBIT THE FILING OF A PETITION UNDER § 20
648	648	7–105.1(B)(2) OF THIS SUBTITLE; OR 21
649	649
650	650	(II) PRECLUDE THE COURT FROM GRANT ING A PETITION WITH 22
651	651	RESPECT TO A MATERIA LLY DELINQUENT MORTG AGE UNDER § 7–105.1(B)(2) OF 23
652	652	THIS SUBTITLE. 24
653	653
654	654	(2) UNLESS PROHIBITED BY LAW, REGULATION , OR EXECUTIVE 25
655	655	ORDER, A SECURED PARTY SHAL L SEND LOAN–RELATED CORRESPONDEN CE TO THE 26
656	656	MORTGAGOR OF A MATER IALLY DELINQUENT MOR TGAGE IN EACH BILLIN G CYCLE. 27
657	657
658	658	(3) PRIOR TO OCTOBER 1, 2026, A SECURED PARTY MAY ENFORCE A 28
659	659	MATERIALLY DELINQUEN T MORTGAGE THROUGH COMMENCEMENT OF A 29
660	660	FORECLOSURE OR JUDIC IAL SALE ONLY IF: 30
661	661
662	662	(I) AT LEAST ONE PIECE OF LOAN–RELATED 31
663	663	CORRESPONDENCE WAS SENT TO THE MORT GAGOR DURING EACH BI LLING CYCLE 32 HOUSE BILL 247 15
664	664
665	665
666	666	FOR THE IMMEDIATELY PRECEDING 24 MONTHS, EXCLUDING ANY PERIOD DURING 1
667	667	WHICH THE SECURED PA RTY WAS PROHIBITED B Y LAW, REGULATION , OR 2
668	668	EXECUTIVE ORDER FROM SENDING LOAN –RELATED CORRESPONDEN CE TO THE 3
669	669	MORTGAGOR ; OR 4
670	670
671	671	(II) THE SECURED PARTY SERVES NOTICE ON THE MORTGAGOR 5
672	672	OF THE MATERIALLY DELINQUEN T MORTGAGE ON A FORM PRESCRIBED BY 6
673	673	REGULATION ADOPTED B Y THE COMMISSIONER OF FINANCIAL REGULATION AT 7
674	674	LEAST 90 DAYS PRIOR TO COMMENCEMENT . 8
675	675
676	676	(4) ON OR AFTER OCTOBER 1, 2026, A SECURED PARTY MAY EN FORCE 9
677	677	A MATERIALLY DELINQU ENT MORTGAGE THROUGH A FORECLOSUR E OR JUDICIAL 10
678	678	SALE ONLY IF THE SECURED PARTY HA S MET THE REQUIREMEN TS OF PARAGRAPH 11
679	679	(2) OF THIS SUBSECTION FOR THE IMMEDIATELY PRECEDING 24 CONSECUTIVE 12
680	680	MONTHS. 13
681	681
682	682	(C) (1) IN AN ACTION TO FORECLOSE OR OTHERWISE ENFORCE A 14
683	683	MATERIALLY DELINQUEN T MORTGAGE , A MORTGAGOR MAY RAIS E A DEFENSE OF 15
684	684	LACHES. 16
685	685
686	686	(2) A COURT CONSIDERING A DEFENSE OF LACHES IN AN ACTION TO 17
687	687	FORECLOSE OR OTHERWI SE ENFORCE A MATERIA LLY DELINQUENT MORTG AGE 18
688	688	MAY: 19
689	689
690	690	(I) ATTRIBUTE ANY DELAY I N THE ENFORCEMENT OF THE 20
691	691	MORTGAGE TO THE SECU RED PARTY EVEN IF TH E SECURED PARTY DID NOT HOLD 21
692	692	AN INTEREST IN THE M ORTGAGE AT ALL TIMES DURING THE DELAY IN 22
693	693	ENFORCEMENT ; AND 23
694	694
695	695	(II) ORDER ANY RELIEF THE COURT CONSIDERS TO BE 24
696	696	APPROPRIATE . 25
697	697
698	698	(D) A SECURED PARTY MAY NO T RECEIVE FROM THE P ROCEEDS OF ANY 26
699	699	FORECLOSURE OR JUDIC IAL SALE OF A MATERI ALLY DELINQUENT MORT GAGE 27
700	700	MORE THAN 36 MONTHS OF INTEREST A CCRUING UNDER THE MORTGAGE PRIOR TO 28
701	701	THE DATE OF THE FORE CLOSURE SALE . 29
702	702
703	703	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 30
704	704	January 1, 2025. 31