EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0247*
HOUSE BILL 247
N1 4lr0233
(PRE–FILED) CF 4lr0234
By: Chair, Environment and Transportation Committee (By Request –
Departmental – Labor)
Requested: September 15, 2023
Introduced and read first time: January 10, 2024
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Real Property – Residential Foreclosures – Procedures 2
FOR the purpose of repealing the use of a preliminary loss mitigation affidavit in an order 3
to docket or complaint to foreclose a mortgage or deed of trust on residential property; 4
altering certain requirements for the filing of an action to foreclose a mortgage or deed 5
of trust on residential property and altering certain requirements for an order to docket 6
or a complaint to foreclose a mortgage or deed of trust; establishing that a copy of a 7
notice of intent to foreclose is not a public record and is not subject to the Public 8
Information Act; authorizing the Commissioner of Financial Regulation to enter into 9
certain information sharing agreements with other State agencies and establishing 10
requirements for the agreements; altering certain requirements and procedures for 11
foreclosure mediation in residential foreclosure proceedings; requiring a secured party 12
to provide certain loan–related correspondence in order to enforce a materially 13
delinquent mortgage, subject to certain exceptions; and generally relating to 14
foreclosures on residential property. 15
BY repealing and reenacting, with amendments, 16
Article – Real Property 17
Section 7–105.1(a), (b), (e), (h) through (k), and (q) through (s) 18
Annotated Code of Maryland 19
(2023 Replacement Volume) 20
BY repealing and reenacting, without amendments, 21
Article – Real Property 22
Section 7–105.1(c)(1) through (3) 23
Annotated Code of Maryland 24
(2023 Replacement Volume) 25
BY adding to 26 2 HOUSE BILL 247
Article – Real Property 1
Section 7–105.1(c)(7) and (8) and (q) and 7–105.19 2
Annotated Code of Maryland 3
(2023 Replacement Volume) 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That the Laws of Maryland read as follows: 6
Article – Real Property 7
7–105.1. 8
(a) (1) In this section the following words have the meanings indicated. 9
(2) (i) “Certified community development financial institution” means 10
a community development financial institution that is certified by the Community 11
Development Financial Institutions Fund in the U.S. Department of the Treasury under 12
12 U.S.C. § 4701 et seq. 13
(ii) “Certified community development financial institution” 14
includes any company that controls, is controlled by, or is under common control with a 15
certified community development financial institution. 16
(3) “Final loss mitigation affidavit” means an affidavit that: 17
(i) Is made by a person authorized to act on behalf of a secured party 18
of a mortgage or deed of trust on owner–occupied residential property that is the subject of 19
a foreclosure action; 20
(ii) Certifies the completion of the final determination of loss 21
mitigation analysis in connection with the mortgage or deed of trust; and 22
(iii) If denied, provides an explanation for the denial of a loan 23
modification or other loss mitigation. 24
(4) “Foreclosure mediation” means a conference at which the parties in a 25
foreclosure action, their attorneys, additional representatives of the parties, or a 26
combination of those persons appear before an impartial individual to discuss the positions 27
of the parties in an attempt to reach agreement on a loss mitigation program for the 28
mortgagor or grantor. 29
(5) “Housing counseling services” means assistance provided to mortgagors 30
or grantors by nonprofit and governmental entities that are identified on a list maintained 31
by the Department of Housing and Community Development. 32
(6) “Loss mitigation analysis” means an evaluation of the facts and 33
circumstances of a loan secured by owner–occupied residential property to determine: 34 HOUSE BILL 247 3
(i) Whether a mortgagor or grantor qualifies for a loan modification; 1
and 2
(ii) If there will be no loan modification, whether any other loss 3
mitigation program may be made available to the mortgagor or grantor. 4
(7) “Loss mitigation program” means an option in connection with a loan 5
secured by owner–occupied residential property that: 6
(i) Avoids foreclosure through loan modification or other changes to 7
existing loan terms that are intended to allow the mortgagor or grantor to stay in the 8
property; 9
(ii) Avoids foreclosure through a short sale, deed in lieu of 10
foreclosure, or other alternative that is intended to simplify the mortgagor’s or grantor’s 11
relinquishment of ownership of the property; or 12
(iii) Lessens the harmful impact of foreclosure on the mortgagor or 13
grantor. 14
(8) “Owner–occupied residential property” means residential property in 15
which at least one unit is occupied by an individual who: 16
(i) Has an ownership interest in the property; and 17
(ii) Uses the property as the individual’s primary residence. 18
(9) “Postfile mediation” means foreclosure mediation that occurs in 19
accordance with subsection (j) of this section after the date on which the order to docket or 20
complaint to foreclose is filed. 21
(10) “Prefile mediation” means foreclosure mediation that occurs in 22
accordance with subsection (d) of this section before the date on which the order to docket 23
or complaint to foreclose is filed. 24
[(11) “Preliminary loss mitigation affidavit” means an affidavit that: 25
(i) Is made by a person authorized to act on behalf of a secured party 26
of a mortgage or deed of trust on owner–occupied residential property that is the subject of 27
a foreclosure action; 28
(ii) Certifies the status of an incomplete loss mitigation analysis in 29
connection with the mortgage or deed of trust; and 30
(iii) Includes reasons why the loss mitigation analysis is incomplete.] 31
4 HOUSE BILL 247
[(12)] (11) “Residential property” means real property improved by four or 1
fewer single family dwelling units that are designed principally and are intended for human 2
habitation. 3
(b) (1) Except as provided in paragraph (2) of this subsection, an action to 4
foreclose a mortgage or deed of trust on residential property may not be filed until the later 5
of: 6
(i) [90] 120 days after a default in a condition on which the 7
mortgage or deed of trust provides that a sale may be made; or 8
(ii) 45 days after the LATER OF: 9
1. THE DATE THE notice of intent to foreclose required 10
under subsection (c) of this section is sent TO THE MORTGAGOR OR GRANTOR AND THE 11
RECORD OWNER ; OR 12
2. THE DATE A COPY OF TH E NOTICE OF INTENT T O 13
FORECLOSE IS SENT TO THE COMMISSIONER OF FINANCIAL REGULATION IN 14
ACCORDANCE WITH SUBSECTION (C)(3) OF THIS SECTION. 15
(2) (i) The secured party may petition the circuit court for leave to 16
immediately commence an action to foreclose the mortgage or deed of trust if: 17
1. The loan secured by the mortgage or deed of trust was 18
obtained by fraud or deception; 19
2. No payments have ever been made on the loan secured by 20
the mortgage or deed of trust; 21
3. The property subject to the mortgage or deed of trust has 22
been destroyed; 23
4. The default occurred after the stay has been lifted in a 24
bankruptcy proceeding; or 25
5. The property subject to the mortgage or deed of trust is 26
property that is vacant and abandoned as provided under § 7–105.18 of this subtitle. 27
(ii) The court may rule on the petition with or without a hearing. 28
(iii) If the petition is granted: 29
1. The action may be filed at any time after a default in a 30
condition on which the mortgage or deed of trust provides that a sale may be made; and 31
HOUSE BILL 247 5
2. The secured party need not send the written notice of 1
intent to foreclose required under subsection (c) of this section. 2
(c) (1) Except as provided in subsection (b)(2)(iii) of this section, at least 45 3
days before the filing of an action to foreclose a mortgage or deed of trust on residential 4
property, the secured party shall send a written notice of intent to foreclose to the 5
mortgagor or grantor and the record owner. 6
(2) The notice of intent to foreclose shall be sent: 7
(i) By certified mail, postage prepaid, return receipt requested, 8
bearing a postmark from the United States Postal Service; and 9
(ii) By first–class mail. 10
(3) A copy of the notice of intent to foreclose shall be sent to the 11
Commissioner of Financial Regulation. 12
(7) (I) A COPY OF A NOTICE OF INTENT TO FORECLOSE SENT TO 13
THE COMMISSIONER OF FINANCIAL REGULATION UNDER PARAGRAPH (3) OF THIS 14
SUBSECTION: 15
1. IS NOT A PUBLIC RECOR D AS DEFINED IN § 4–101 OF 16
THE GENERAL PROVISIONS ARTICLE; AND 17
2. IS NOT SUBJECT TO TITLE 4 OF THE GENERAL 18
PROVISIONS ARTICLE. 19
(II) THE COMMISSIONER OF FINANCIAL REGULATION MAY 20
AUTHORIZE ACCESS TO A COPY OF A NOTICE O F INTENT TO FORECLOS E ONLY TO: 21
1. A MORTGAGOR OR GRANTOR; 22
2. A RECORD OWNER ; 23
3. A LEGAL REPRESENTATIVE OR DESIGNEE OF THE 24
MORTGAGOR OR GRANTOR OR THE RECORD OWNER ; OR 25
4. A STATE AGENCY IN ACCOR DANCE WITH AN 26
INFORMATION SHARING AGREEMENT AUTHORIZED UNDER PAR AGRAPH (8) OF THIS 27
SUBSECTION. 28
(8) (I) THE COMMISSIONER OF FINANCIAL REGULATION MAY 29
ENTER INTO AN INFORMATION SHARING AGREEMENT WITH ANY STATE AGENCY TO 30
SHARE COPIES OF A NO TICE OF INTENT TO FO RECLOSE OR INFORMATION 31 6 HOUSE BILL 247
CONTAINED IN A NOTIC E OF INTENT TO FOREC LOSE ONLY IF THE INFORMATION 1
SHARING AGREEMENT PROHIBIT S THE AGENC Y FROM DISCLOSING ANY SHARED 2
INFORMATION WITHOUT THE PRIOR WR ITTEN CONSENT OF THE COMMISSIONER OF 3
FINANCIAL REGULATION. 4
(II) INFORMATION SHARED IN ACCORDANCE WITH AN 5
INFORMATION SHARING AGREEMENT AUTHORI ZED UNDER THIS PARAG RAPH: 6
1. IS NOT A PUBLIC RECOR D AS DEFINED IN § 4–101 OF 7
THE GENERAL PROVISIONS ARTICLE; 8
2. IS NOT SUBJECT TO TITLE 4 OF THE GENERAL 9
PROVISIONS ARTICLE; AND 10
3. MAY NOT BE DISCLOSED BY A STATE AGENCY UNDER 11
A SUBPOENA, A DISCOVERY, OR AN ADMISSION INTO EVIDENCE IN PRIVATE CIVIL 12
LITIGATION OR ADMINI STRATIVE PROCESS WIT HOUT THE PRIOR WRITT EN CONSENT 13
OF THE COMMISSIONER OF FINANCIAL REGULATION. 14
(e) An order to docket or a complaint to foreclose a mortgage or deed of trust on 15
residential property shall: 16
(1) Include: 17
(i) If applicable, the license number of: 18
1. The mortgage originator; and 19
2. The mortgage lender; and 20
(ii) An affidavit stating: 21
1. The date on which the default occurred and the nature of 22
the default; [and] 23
2. WHETHER THE DEBT INST RUMENT CONSTITUTES A 24
MATERIALLY DELINQUEN T MORTGAGE WITHIN TH E MEANING OF § 7–105.19 OF THIS 25
SUBTITLE; 26
3. IF THE DEBT INSTRUMEN T IS A MATERIALLY 27
DELINQUENT MORTGAGE WITHIN THE MEANING O F § 7–105.19 OF THIS SUBTITLE , 28
THAT THE SECURED PAR TY HAS SATISFIED ANY REQUIREMENTS FOR INS TITUTING 29
FORECLOSURE UNDER THAT SECTION ; AND 30
[2.] 4. If applicable, that: 31 HOUSE BILL 247 7
A. A notice of intent to foreclose was sent to the mortgagor or 1
grantor in accordance with subsection (c) of this section and the date on which the notice 2
was sent; and 3
B. At the time the notice of intent to foreclose was sent, the 4
contents of the notice of intent to foreclose were accurate; and 5
(2) Be accompanied by: 6
(i) The original or a certified copy of the mortgage or deed of trust; 7
(ii) A statement of the debt remaining due and payable supported by 8
an affidavit of the plaintiff or the secured party or the agent or attorney of the plaintiff or 9
secured party; 10
(iii) A copy of the debt instrument accompanied by an affidavit 11
certifying ownership of the debt instrument; 12
(iv) If applicable, the original or a certified copy of the assignment of 13
the mortgage for purposes of foreclosure or the deed of appointment of a substitute trustee; 14
(v) If any defendant is an individual, an affidavit that is in 15
compliance with § 521 of the Servicemembers Civil Relief Act, 50 U.S.C. App. § 501 et seq.; 16
(vi) If applicable, a copy of the notice of intent to foreclose; 17
(vii) If the secured party and mortgagor or grantor have elected to 18
participate in prefile mediation, the report of the prefile mediation issued by the Office of 19
Administrative Hearings; 20
(viii) If the secured party and the mortgagor or grantor have not 21
elected to participate in prefile mediation, a statement that the parties have not elected to 22
participate in prefile mediation; 23
(ix) In addition to any other filing fees required by law, a filing fee in 24
the amount of $300; and 25
(x) 1. If the loss mitigation analysis has been completed, subject 26
to subsection (g) of this section, a final loss mitigation affidavit in the form prescribed by 27
regulation adopted by the Commissioner of Financial Regulation; and 28
2. If the loss mitigation analysis has not been completed, a 29
[preliminary loss mitigation affidavit in the form prescribed by regulation adopted by the 30
Commissioner of Financial Regulation] STATEMENT EXPLAINING WHY THE LOSS 31
MITIGATION ANALYSIS HAS NOT BEEN COMPLETED . 32
8 HOUSE BILL 247
(h) (1) A copy of the order to docket or complaint to foreclose on residential 1
property and all other papers filed with it in the form and sequence as prescribed by 2
regulations adopted by the Commissioner of Financial Regulation, accompanied by the 3
documents required under paragraphs [(2), (3), and (4)] (2) AND (3) of this subsection, 4
shall be served on the mortgagor or grantor by: 5
(i) Personal delivery of the papers to the mortgagor or grantor; or 6
(ii) Leaving the papers with a resident of suitable age and discretion 7
at the mortgagor’s or grantor’s dwelling house or usual place of abode. 8
(2) The service of documents under paragraph (1) of this subsection shall 9
be accompanied by a separate, clearly marked notice, in the form prescribed by regulation 10
adopted by the Commissioner of Financial Regulation, that states: 11
(i) The significance of the order to docket or a complaint to foreclose; 12
(ii) The options for the mortgagor or grantor to take, including 13
housing counseling services and financial assistance resources the mortgagor or grantor 14
may consult; and 15
(iii) In the case of a mortgagor or grantor who has participated in 16
prefile mediation, that the mortgagor or grantor is not entitled to postfile mediation except 17
as otherwise provided in the prefile mediation agreement. 18
(3) If the order to docket or complaint to foreclose is NOT accompanied by 19
a [preliminary] FINAL loss mitigation affidavit, the service of documents under paragraph 20
(1) of this subsection shall be accompanied by a loss mitigation application form and any 21
other supporting documents as prescribed by regulation adopted by the Commissioner of 22
Financial Regulation. 23
[(4) (i) Except as provided in subparagraph (ii) of this paragraph, if the 24
order to docket or complaint to foreclose is accompanied by a final loss mitigation affidavit 25
and concerns owner–occupied residential property, the service of documents under 26
paragraph (1) of this subsection shall be accompanied by a request for postfile mediation 27
form and any other supporting documents as prescribed by regulation adopted by the 28
Commissioner of Financial Regulation. 29
(ii) The order to docket or complaint to foreclose may exclude the 30
request for postfile mediation form if: 31
1. The mortgagor or grantor has participated in prefile 32
mediation and the prefile mediation agreement does not give the mortgagor or grantor the 33
right to participate in postfile mediation; or 34
2. The property subject to the mortgage or deed of trust is not 35
owner–occupied.] 36 HOUSE BILL 247 9
[(5)] (4) If at least two good faith efforts to serve the mortgagor or grantor 1
under paragraph (1) of this subsection on different days have not succeeded, the plaintiff 2
may effect service by: 3
(i) Filing an affidavit with the court describing the good faith efforts 4
to serve the mortgagor or grantor; and 5
(ii) 1. Mailing a copy of all the documents required to be served 6
under paragraph (1) of this subsection by certified mail, return receipt requested, and 7
first–class mail to the mortgagor’s or grantor’s last known address and, if different, to the 8
address of the residential property subject to the mortgage or deed of trust; and 9
2. Posting a copy of all the documents required to be served 10
under paragraph (1) of this subsection in a conspicuous place on the residential property 11
subject to the mortgage or deed of trust. 12
[(6)] (5) The individual making service of documents under this 13
subsection shall file proof of service with the court in accordance with the Maryland Rules. 14
(i) (1) If the order to docket or complaint to foreclose is NOT accompanied by 15
a [preliminary] FINAL loss mitigation affidavit, the secured party, at least 30 days before 16
the date of a foreclosure sale, shall: 17
(i) File with the court a final loss mitigation affidavit in the form 18
prescribed by regulation adopted by the Commissioner of Financial Regulation; and 19
(ii) Send A COPY OF THE FINAL LOSS MITIGATION AFFI DAVIT to 20
the mortgagor or grantor by first class and by certified mail[: 21
1. A copy of the final loss mitigation affidavit; and 22
2. A request for postfile mediation form and supporting 23
documents as provided under subsection (h)(4) of this section]. 24
(2) A final loss mitigation affidavit shall be filed under this subsection no 25
earlier than 28 days after the order to docket or complaint to foreclose is served on the 26
mortgagor or grantor. 27
(j) (1) (i) This paragraph applies to PROCEEDINGS IN WHICH a 28
mortgagor or grantor [who]: 29
1. Has not participated in prefile mediation; or 30
10 HOUSE BILL 247
2. Has participated in prefile mediation that resulted in a 1
prefile mediation agreement that gives the mortgagor or grantor the right to participate in 2
postfile mediation. 3
(ii) In a foreclosure action on owner–occupied residential property, 4
the [mortgagor or grantor may] SECURED PARTY SHALL file with the court a completed 5
[request] NOTICE OF QUALIFICATION for postfile mediation [not later than] ON A FORM 6
PRESCRIBED BY THE COMMISSIONER OF FINANCIAL REGULATION FOLLOWING : 7
1. If SERVICE INCLUDED A C OPY OF the final loss 8
mitigation affidavit [was delivered along with service of the copy of], SERVICE OF the order 9
to docket or complaint to foreclose under subsection (h) of this section[, 25 days after that 10
service on the mortgagor or grantor]; or 11
2. [If the final loss mitigation affidavit was mailed] 12
MAILING OF THE FINAL LOSS MITIGATION AFFI DAVIT as provided in subsection (i) of 13
this section[, 25 days after the mailing of the final loss mitigation affidavit]. 14
(iii) 1. A [request] NOTICE OF QUALIFICATI ON for postfile 15
mediation shall be accompanied by a filing fee of $50. 16
2. The court may reduce or waive the filing fee under 17
subsubparagraph 1 of this subparagraph if the mortgagor or grantor is eligible for a 18
reduction or waiver under the Maryland Legal Services guidelines. 19
3. A SECURED PARTY MAY CO LLECT THE $50 FILING FEE 20
PAID UNDER SUBSUBPARAGRAPH 1 OF THIS SUBPARAGRAPH : 21
A. BY INCLUDING THE PAYMEN T OBLIGATION IN ANY 22
POSTFILE MEDIATION A GREEMENT; OR 23
B. FROM THE PROCEEDS OF ANY FORECLOSURE SALE OF 24
THE PROPERTY . 25
(iv) The [mortgagor or grantor] SECURED PARTY shall mail a copy 26
of the [request] NOTICE OF QUALIFICATION for postfile mediation to the [secured party’s 27
foreclosure attorney] MORTGAGOR OR GRANTOR WITH ANY ADDITIONAL DOCUMENTS 28
REQUIRED BY THE COMMISSIONER OF FINANCIAL REGULATION. 29
(2) (i) [The] NOTWITHSTANDING THE S ECURED PARTY ’S NOTICE 30
OF QUALIFICATION FOR POSTFILE MEDIATION U NDER PARAGRAPH (1)(II) OF THIS 31
SUBSECTION, THE secured party may file a motion to [strike the request for] WAIVE 32
postfile mediation in accordance with the Maryland Rules. 33
HOUSE BILL 247 11
(ii) The motion to [strike] WAIVE must be accompanied by an 1
affidavit that sets forth the reasons why postfile mediation is not appropriate. 2
(iii) The secured party shall mail a copy of the motion to [strike] 3
WAIVE and the accompanying affidavit to the mortgagor or grantor. 4
(iv) There is a presumption that a mortgagor or grantor is entitled to 5
postfile mediation with respect to owner–occupied residential property unless: 6
1. Good cause is shown why postfile mediation is not 7
appropriate; or 8
2. [The] AFTER RECEIVING SERVICE OF THE ORDER TO 9
DOCKET, THE mortgagor or grantor [participated in prefile mediation and the prefile 10
mediation agreement does not give the mortgagor or grantor the right to participate in] 11
EXECUTES A WRITTEN W AIVER OF postfile mediation ON A FORM PR ESCRIBED BY 12
REGULATION ADOPTED B Y THE COMMISSIONER OF FINANCIAL REGULATION. 13
(3) (i) The mortgagor or grantor may file a response to the motion to 14
[strike] WAIVE within 15 days. 15
(ii) The mortgagor or grantor shall mail a copy of the response to the 16
foreclosure attorney. 17
(iii) If the court grants the motion to [strike] WAIVE, the court shall 18
instruct the Office of Administrative Hearings to cancel any scheduled postfile mediation. 19
(k) (1) Within 5 days after receipt of a [request] NOTICE OF QUALIFICATION 20
for postfile mediation, the court shall transmit the [request] NOTICE to the Office of 21
Administrative Hearings for scheduling. 22
(2) (i) Within 60 days after transmittal of the [request] NOTICE OF 23
QUALIFICATION for foreclosure mediation, the Office of Administrative Hearings shall 24
conduct a foreclosure mediation. 25
(ii) For good cause, the Office of Administrative Hearings may 26
extend the time for completing the foreclosure mediation for a period not exceeding 30 days 27
or, if all parties agree, for a longer period of time. 28
(III) UNLESS A MORTGAGOR OR GRANTOR REQUESTS 29
FORECLOSURE MEDIATIO N TO BE CONDUCTED IN PERSON , FORECLOSURE 30
MEDIATION SHALL BE C ONDUCTED BY ELECTRONIC MEANS IN ACCORDANCE WITH § 31
10–211 OF THE STATE GOVERNMENT ARTICLE. 32
12 HOUSE BILL 247
(3) The Office of Administrative Hearings shall send notice of the 1
scheduled foreclosure mediation to the foreclosure attorney, the secured party, and the 2
mortgagor or grantor. 3
(4) The notice from the Office of Administrative Hearings shall: 4
(i) Include instructions regarding the documents and information, 5
as required by regulations adopted by the Commissioner of Financial Regulation, that must 6
be provided by each party to the other party and to the mediator; [and] 7
(ii) Require the information and documents to be provided no later 8
than 20 days before the scheduled date of the foreclosure mediation; 9
(III) INCLUDE INSTRUCTIONS FOR ACCESSING FORECL OSURE 10
MEDIATION BY ELECTRO NIC MEANS; 11
(IV) ADVISE THE MORTGAGOR OR GRANTOR THAT THEY MAY 12
REQUEST IN –PERSON FORECLOSURE M EDIATION IN LIEU OF MEDIATION BY 13
ELECTRONIC MEANS ; AND 14
(V) PROVIDE A FORM WITH I NSTRUCTIONS FOR THE 15
MORTGAGOR OR GRANTOR TO REQUEST IN–PERSON FORECLOSURE MEDIATION. 16
(Q) (1) IF THE COURT DISMISSE S, OR A SECURED PARTY W ITHDRAWS, AN 17
ORDER TO DOCKET , THE SECURED PARTY SH ALL SUBMIT A NOTICE OF TERMINAT ION 18
OF ORDER TO DOCKET TO THE FORECLOSED PROPERTY REGISTRY ESTABLISHED 19
BY THE COMMISSIONER OF FINANCIAL REGULATION UNDER § 7–105.14 OF THIS 20
SUBTITLE. 21
(2) THE NOTICE OF TERMINA TION SHALL BE IN A F ORM AND CONTAIN 22
INFORMATION PRESCRIB ED BY REGULATIONS AD OPTED BY THE COMMISSIONER OF 23
FINANCIAL REGULATION. 24
(3) A NOTICE OF TERMINATIO N FILED IN ACCORDANC E WITH THIS 25
SECTION: 26
(I) IS NOT A PUBLIC RECOR D AS DEFINED IN § 4–101 OF THE 27
GENERAL PROVISIONS ARTICLE; AND 28
(II) IS NOT SUBJECT TO TITLE 4 OF THE GENERAL PROVISIONS 29
ARTICLE. 30
[(q)] (R) An action for failure to comply with the provisions of this section shall 31
be brought within 3 years after the date of the order ratifying the sale. 32
HOUSE BILL 247 13
[(r)] (S) Revenue collected from the filing fees required under subsections 1
(e)(2)(ix) and (j)(1)(iii) of this section shall be distributed to the Housing Counseling and 2
Foreclosure Mediation Fund established under § 4–507 of the Housing and Community 3
Development Article. 4
[(s)] (T) The Commissioner of Financial Regulation may adopt additional 5
regulations necessary to carry out the requirements of this section. 6
7–105.19. 7
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 8
INDICATED. 9
(2) “BILLING CYCLE” MEANS: 10
(I) IF A MORTGAGE REQUIRE S PERIODIC PAYMENTS AT 11
INTERVALS OF 3 MONTHS OR LESS , THE INTERVAL BETWEEN THE DAYS OR DATES OF 12
REGULAR PERIODIC PAY MENTS REQUIRED BY TH E TERMS OF THE MORTGAGE ; OR 13
(II) IF THE MORTGAGE TERMS DO NOT REQUIRE PERIO DIC 14
PAYMENTS OR REQUIRE PERIODIC PAYMENTS ON INTERVALS GREATER TH AN 3 15
MONTHS, EVERY 3 MONTHS. 16
(3) “LOAN–RELATED CORRESPONDEN CE” MEANS WRITTEN 17
COMMUNICATION FROM A SECURED PARTY TO A MORTGAGOR THAT : 18
(I) IF THE SECURED PARTY IS R EQUIRED TO PROVIDE 19
PERIODIC STATEMENTS UNDER 12 C.F.R. § 1026.41, COMPLIES WITH THE 20
REQUIREMENTS OF THAT PROVISION; OR 21
(II) IF THE SECURED PARTY IS NOT REQUIRED TO P ROVIDE 22
PERIODIC STATEMENTS UNDER 12 C.F.R. § 1026.41, CONTAINS THE FOLLOWING: 23
1. THE NAME AND CONTACT INFORMATION OF THE 24
SECURED PARTY ; 25
2. THE CURRENT AMOUNT OF THE OUTSTANDING 26
PRINCIPAL BALANCE ; 27
3. THE CURRENT INTEREST RATE IN EFFECT; 28
4. THE AMOUNT CURRENTLY DUE DISAGGREGATED BY 29
PRINCIPAL, INTEREST, CHARGES, AND FEES; AND 30
14 HOUSE BILL 247
5. THE LENGTH OF ANY PAY MENT DELINQUENCY , 1
INCLUDING THE DATE O F LAST PAYMENT . 2
(4) “MATERIALLY DELINQUENT MORTGAGE” MEANS A MORTGAGE ON 3
WHICH NO PAYMENTS HA VE BEEN MADE BY A PARTY, OTHER THAN THE SECUR ED 4
PARTY, IN THE PRECEDING 5 YEARS, EXCLUDING ANY PERIOD OF TIME IN WHICH A 5
SECURED PARTY COULD NOT INSTITUTE A FORECLOSURE PROCEEDI NG DUE TO AN 6
EXECUTIVE ORDER OR OTHER SIMILAR OFFICIAL ACTION RESTRICTING 7
FORECLOSURE ACTIONS . 8
(5) “MORTGAGE” MEANS ANY MORTGAGE O R DEED OF TRUST 9
ENCUMBERING OWNER –OCCUPIED RESIDENTIAL PROPERTY. 10
(6) “MORTGAGOR” MEANS ANY PARTY SIGNING A MORTGAGE AS A 11
MORTGAGOR OR A DEED OF TRUST AS A G RANTOR. 12
(7) “OWNER–OCCUPIED RESIDENTIAL PROPERTY” HAS THE MEANING 13
STATED IN § 7–105.1 OF THIS SUBTITLE. 14
(8) “RESIDENTIAL PROPERTY ” HAS THE MEANING STAT ED IN § 15
7–105.1 OF THIS SUBTITLE. 16
(9) “SECURED PARTY ” MEANS AN OWNER , A SERVICER, OR ANY 17
OTHER PERSON ENTITLE D TO ENFORCE A MORTG AGE OR A DEED OF TRUST. 18
(B) (1) THIS SUBSECTION MAY NOT BE INTERPRET ED TO: 19
(I) PROHIBIT THE FILING OF A PETITION UNDER § 20
7–105.1(B)(2) OF THIS SUBTITLE; OR 21
(II) PRECLUDE THE COURT FROM GRANT ING A PETITION WITH 22
RESPECT TO A MATERIA LLY DELINQUENT MORTG AGE UNDER § 7–105.1(B)(2) OF 23
THIS SUBTITLE. 24
(2) UNLESS PROHIBITED BY LAW, REGULATION , OR EXECUTIVE 25
ORDER, A SECURED PARTY SHAL L SEND LOAN–RELATED CORRESPONDEN CE TO THE 26
MORTGAGOR OF A MATER IALLY DELINQUENT MOR TGAGE IN EACH BILLIN G CYCLE. 27
(3) PRIOR TO OCTOBER 1, 2026, A SECURED PARTY MAY ENFORCE A 28
MATERIALLY DELINQUEN T MORTGAGE THROUGH COMMENCEMENT OF A 29
FORECLOSURE OR JUDIC IAL SALE ONLY IF: 30
(I) AT LEAST ONE PIECE OF LOAN–RELATED 31
CORRESPONDENCE WAS SENT TO THE MORT GAGOR DURING EACH BI LLING CYCLE 32 HOUSE BILL 247 15
FOR THE IMMEDIATELY PRECEDING 24 MONTHS, EXCLUDING ANY PERIOD DURING 1
WHICH THE SECURED PA RTY WAS PROHIBITED B Y LAW, REGULATION , OR 2
EXECUTIVE ORDER FROM SENDING LOAN –RELATED CORRESPONDEN CE TO THE 3
MORTGAGOR ; OR 4
(II) THE SECURED PARTY SERVES NOTICE ON THE MORTGAGOR 5
OF THE MATERIALLY DELINQUEN T MORTGAGE ON A FORM PRESCRIBED BY 6
REGULATION ADOPTED B Y THE COMMISSIONER OF FINANCIAL REGULATION AT 7
LEAST 90 DAYS PRIOR TO COMMENCEMENT . 8
(4) ON OR AFTER OCTOBER 1, 2026, A SECURED PARTY MAY EN FORCE 9
A MATERIALLY DELINQU ENT MORTGAGE THROUGH A FORECLOSUR E OR JUDICIAL 10
SALE ONLY IF THE SECURED PARTY HA S MET THE REQUIREMEN TS OF PARAGRAPH 11
(2) OF THIS SUBSECTION FOR THE IMMEDIATELY PRECEDING 24 CONSECUTIVE 12
MONTHS. 13
(C) (1) IN AN ACTION TO FORECLOSE OR OTHERWISE ENFORCE A 14
MATERIALLY DELINQUEN T MORTGAGE , A MORTGAGOR MAY RAIS E A DEFENSE OF 15
LACHES. 16
(2) A COURT CONSIDERING A DEFENSE OF LACHES IN AN ACTION TO 17
FORECLOSE OR OTHERWI SE ENFORCE A MATERIA LLY DELINQUENT MORTG AGE 18
MAY: 19
(I) ATTRIBUTE ANY DELAY I N THE ENFORCEMENT OF THE 20
MORTGAGE TO THE SECU RED PARTY EVEN IF TH E SECURED PARTY DID NOT HOLD 21
AN INTEREST IN THE M ORTGAGE AT ALL TIMES DURING THE DELAY IN 22
ENFORCEMENT ; AND 23
(II) ORDER ANY RELIEF THE COURT CONSIDERS TO BE 24
APPROPRIATE . 25
(D) A SECURED PARTY MAY NO T RECEIVE FROM THE P ROCEEDS OF ANY 26
FORECLOSURE OR JUDIC IAL SALE OF A MATERI ALLY DELINQUENT MORT GAGE 27
MORE THAN 36 MONTHS OF INTEREST A CCRUING UNDER THE MORTGAGE PRIOR TO 28
THE DATE OF THE FORE CLOSURE SALE . 29
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 30
January 1, 2025. 31