EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0769*
HOUSE BILL 769
N1 5lr1126
CF SB 682
By: Delegates D. Jones, Allen, Bagnall, Bartlett, Boafo, Holmes, J. Lewis, Pruski,
Roberson, Schmidt, and Simmons Simmons, Behler, Boyce, Healey,
T. Morgan, and Stewart
Introduced and read first time: January 29, 2025
Assigned to: Environment and Transportation
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 6, 2025
CHAPTER ______
AN ACT concerning 1
Real Property – Residential Foreclosures – Materially Delinquent Mortgages 2
Commencement Restrictions 3
FOR the purpose of altering certain requirements for establishing certain restrictions for 4
the commencement of a foreclosure and an order to docket or a complaint to foreclose 5
a mortgage or deed of trust on residential property; requiring a secured party to 6
provide certain loan–related correspondence in order to enforce a materially 7
delinquent mortgage, subject to certain exceptions; permitting a mortgagor to raise 8
a defense of laches in an action to enforce a materially delinquent mortgage; and 9
generally relating to materially delinquent mortgages and foreclosures and generally 10
relating to an action to foreclose a mortgage or deed of trust on residential property. 11
BY repealing and reenacting, without amendments, 12
Article – Real Property 13
Section 7–105.1(a)(1), (8), and (12) and, (b), and (f) 14
Annotated Code of Maryland 15
(2023 Replacement Volume and 2024 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Real Property 18
Section 7–105.1(e)(1) 7–105.1(e) 19
Annotated Code of Maryland 20
(2023 Replacement Volume and 2024 Supplement) 21 2 HOUSE BILL 769
BY adding to 1
Article – Real Property 2
Section 7–105.19 7–105.1(e–1) 3
Annotated Code of Maryland 4
(2023 Replacement Volume and 2024 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Real Property 8
7–105.1. 9
(a) (1) In this section the following words have the meanings indicated. 10
(8) “Owner–occupied residential property” means residential property in 11
which at least one unit is occupied by an individual who: 12
(i) Has an ownership interest in the property; and 13
(ii) Uses the property as the individual’s primary residence. 14
(12) “Residential property” means real property improved by four or fewer 15
single family dwelling units that are designed principally and are intended for human 16
habitation. 17
(b) (1) Except as provided in paragraph (2) of this subsection, an action to 18
foreclose a mortgage or deed of trust on residential property may not be filed until the later 19
of: 20
(i) 90 days after a default in a condition on which the mortgage or 21
deed of trust provides that a sale may be made; or 22
(ii) 45 days after the notice of intent to foreclose required under 23
subsection (c) of this section is sent. 24
(2) (i) The secured party may petition the circuit court for leave to 25
immediately commence an action to foreclose the mortgage or deed of trust if: 26
1. The loan secured by the mortgage or deed of trust was 27
obtained by fraud or deception; 28
2. No payments have ever been made on the loan secured by 29
the mortgage or deed of trust; 30
HOUSE BILL 769 3
3. The property subject to the mortgage or deed of trust has 1
been destroyed; 2
4. The default occurred after the stay has been lifted in a 3
bankruptcy proceeding; or 4
5. The property subject to the mortgage or deed of trust is 5
property that is vacant and abandoned as provided under § 7–105.18 of this subtitle. 6
(ii) The court may rule on the petition with or without a hearing. 7
(iii) If the petition is granted: 8
1. The action may be filed at any time after a default in a 9
condition on which the mortgage or deed of trust provides that a sale may be made; and 10
2. The secured party need not send the written notice of 11
intent to foreclose required under subsection (c) of this section. 12
(e) An order to docket or a complaint to foreclose a mortgage or deed of trust on 13
residential property shall: 14
(1) Include: 15
(i) If applicable, the license number of: 16
1. The mortgage originator; and 17
2. The mortgage lender; and 18
(ii) An affidavit stating: 19
1. The date on which the default occurred and the nature of 20
the default; [and] 21
2. A. WHETHER THE DEBT INST RUMENT 22
CONSTITUTES A MATERI ALLY DELINQUENT MORT GAGE WITHIN THE MEAN ING OF § 23
7–105.19 OF THIS SUBTITLE; AND 24
B. IF THE DEBT INSTRUMEN T IS A MATERIALLY 25
DELINQUENT MORTGAGE WITHIN THE MEANING O F § 7–105.19 OF THIS SUBTITLE , 26
THAT THE SECURED PARTY HAS SAT ISFIED ANY REQUIREME NTS FOR INSTITUTING 27
FORECLOSURE UNDER TH AT SECTION; AND 28
[2.] 3. 2. If applicable, that: 29
4 HOUSE BILL 769
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; AND 31
(3) BE COMMENCED NOT LATE R THAN 10 YEARS AFTER THE DATE OF 32
DEFAULT CLAIMED IN T HE ORDER TO DOCKET O R COMPLAINT TO FOREC LOSE. 33 HOUSE BILL 769 5
(E–1) IF A FORECLOSURE IS C OMMENCED BY A SECURE D PARTY THAT 1
ACQUIRED DEBT THAT W AS IN DEFAULT FOR 5 OR MORE YEARS BEFORE THE 2
ACQUISITION, THE SECURED PARTY SH ALL PRESENT THE DOCU MENTS REQUIRED 3
UNDER § 5–1203(B) OF THE COURTS ARTICLE WITH THE ORDE R TO DOCKET OR 4
COMPLAINT TO FORECLOS E. 5
7–105.19. 6
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 7
INDICATED. 8
(2) “BILLING CYCLE” MEANS: 9
(I) IF A MORTGAGE REQUIRE S PERIODIC PAYMENTS AT 10
INTERVALS OF 3 MONTHS OR LESS , THE INTERVAL BETWEEN THE DAYS OR DATES OF 11
REGULAR PERIODIC PAY MENTS REQUIRED BY TH E TERMS OF THE MORTG AGE; OR 12
(II) IF THE MORTGAGE TERMS DO NOT REQUIRE PERIO DIC 13
PAYMENTS OR REQUIRE PERIODIC PAYMENTS ON INTERVALS GREATER TH AN 3 14
MONTHS, EVERY 3 MONTHS. 15
(3) “LOAN–RELATED CORRESPONDENCE ” MEANS WRITTEN 16
COMMUNICATION FROM A SECURED PARTY TO A M ORTGAGOR THAT : 17
(I) IF THE SECURED PARTY IS REQUIRED TO PROVI DE 18
PERIODIC STATEMENTS UNDER 12 C.F.R. § 1026.41, COMPLIES WITH THE 19
REQUIREMENTS OF THAT PROVISION; OR 20
(II) IF THE SECURED PARTY IS NOT R EQUIRED TO PROVIDE 21
PERIODIC STATEMENTS UNDER 12 C.F.R. § 1026.41, CONTAINS THE FOLLOWI NG: 22
1. THE NAME AND CONTACT INFORMATION OF THE 23
SECURED PARTY ; 24
2. THE CURRENT AMOUNT OF THE OUTSTANDING 25
PRINCIPAL BALANCE ; 26
3. THE CURREN T INTEREST RATE IN E FFECT; 27
4. THE AMOUNT CURRENTLY DUE DISAGGREGATED BY 28
PRINCIPAL, INTEREST, CHARGES, AND FEES; AND 29
6 HOUSE BILL 769
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 PA RTY, 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 FORE CLOSURE PROCEEDING D UE TO AN 6
EXECUTIVE ORDER OR O THER SIMILAR O FFICIAL ACTION RESTR ICTING 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 SIGN ING A MORTGAGE AS A 11
MORTGAGOR OR A DEED OF TRUST AS A GRANTO R. 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 ENTITLED TO ENFORCE A MORTGAGE OR A DEED OF TRUST. 18
(B) (1) THIS SUBSECTION MAY N OT BE INTERPRETED TO : 19
(I) PROHIBIT THE FILING O F A PETITION UNDER § 20
7–105.1(B)(2) OF THIS SUBTITLE; OR 21
(II) PRECLUDE THE COURT FR OM GRANTING A PETITI ON WITH 22
RESPECT TO A MATERIALLY DELI NQUENT MORTGAGE UNDE R § 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 BILLING CYCLE. 27
(3) PRIOR TO OCTOBER 1, 2027, A SECURED PARTY MAY ENFORCE A 28
MATERIALLY DELINQUEN T MORTGAGE THROUGH C OMMENCEMENT OF A 29
FORECLOSURE OR JUDIC IAL SALE ONLY IF: 30
(I) AT LEAST ONE PIECE OF LOAN–RELATED 31
CORRESPONDENCE WAS S ENT TO THE MORTGAG OR DURING EACH BILLI NG CYCLE 32 HOUSE BILL 769 7
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) ON A FORM PROVIDED BY THE COMMISSIONER OF 5
FINANCIAL REGULATION, THE SECURED PARTY SE RVES NOTICE ON THE 6
MORTGAGOR OF THE MAT ERIALLY DELINQUENT M ORTGAGE AT LEAST 90 DAYS 7
PRIOR TO COMMENCEMEN T. 8
(4) ON OR AFTER OCTOBER 1, 2027, A SECURED PARTY MAY ENFORCE 9
A MATERIAL LY DELINQUENT MORTGA GE THROUGH A FORECLO SURE OR JUDICIAL 10
SALE ONLY IF THE SEC URED PARTY HAS MET T HE REQUIREMENTS OF P ARAGRAPH 11
(2) OF THIS SUBSECTION F OR THE IMMEDIATELY P RECEDING 24 CONSECUTIVE 12
MONTHS. 13
(5) THE COMMISSIONER OF FINANCIAL REGULATION MAY DE VELOP 14
THE FORM REQUIRED UN DER PARAGRAPH (3)(II) OF THIS SUBSECTION B Y 15
REGULATION . 16
(C) (1) IN AN ACTION TO FOREC LOSE OR OTHERWISE EN FORCE A 17
MATERIALLY DELINQUEN T MORTGAGE , A MORTGAGOR MAY RAIS E A DEFENSE OF 18
LACHES. 19
(2) A COURT CONSIDERING A DEFENSE OF LACHES IN AN ACTION TO 20
FORECLOSE OR OTHERWI SE ENFORCE A MATERIA LLY DELINQUENT MORTG AGE 21
MAY: 22
(I) ATTRIBUTE ANY DELAY I N THE ENFORCEMENT OF THE 23
MORTGAGE TO THE SECU RED PARTY EVEN IF TH E SECURED PARTY DID NOT HOLD 24
AN INTEREST IN THE M ORTGAGE AT ALL TIMES DURING THE DELAY IN 25
ENFORCEMENT ; AND 26
(II) ORDER ANY RELIEF THE COURT CONSIDERS TO B E 27
APPROPRIATE . 28
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 29
January 1, 2026 June 1, 2025. 30