| 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 | - | Underlining indicates amendments to bill. | |
| 6 | - | Strike out indicates matter stricken from the bill by amendment or deleted from the law by | |
| 7 | - | amendment. | |
| 8 | 5 | *hb0769* | |
| 9 | 6 | ||
| 10 | 7 | HOUSE BILL 769 | |
| 11 | 8 | N1 5lr1126 | |
| 12 | - | CF | |
| 9 | + | CF 5lr2796 | |
| 13 | 10 | By: Delegates D. Jones, Allen, Bagnall, Bartlett, Boafo, Holmes, J. Lewis, Pruski, | |
| 14 | - | Roberson, Schmidt, and Simmons Simmons, Behler, Boyce, Healey, | |
| 15 | - | T. Morgan, and Stewart | |
| 11 | + | Roberson, Schmidt, and Simmons | |
| 16 | 12 | Introduced and read first time: January 29, 2025 | |
| 17 | 13 | Assigned to: Environment and Transportation | |
| 18 | - | Committee Report: Favorable with amendments | |
| 19 | - | House action: Adopted | |
| 20 | - | Read second time: March 6, 2025 | |
| 21 | 14 | ||
| 22 | - | ||
| 15 | + | A BILL ENTITLED | |
| 23 | 16 | ||
| 24 | 17 | AN ACT concerning 1 | |
| 25 | 18 | ||
| 26 | 19 | Real Property – Residential Foreclosures – Materially Delinquent Mortgages 2 | |
| 27 | - | Commencement Restrictions 3 | |
| 28 | 20 | ||
| 29 | - | FOR the purpose of altering certain requirements for establishing certain restrictions for 4 | |
| 30 | - | the commencement of a foreclosure and an order to docket or a complaint to foreclose 5 | |
| 31 | - | a mortgage or deed of trust on residential property; requiring a secured party to 6 | |
| 32 | - | provide certain loan–related correspondence in order to enforce a materially 7 | |
| 33 | - | delinquent mortgage, subject to certain exceptions; permitting a mortgagor to raise 8 | |
| 34 | - | a defense of laches in an action to enforce a materially delinquent mortgage; and 9 | |
| 35 | - | generally relating to materially delinquent mortgages and foreclosures and generally 10 | |
| 36 | - | relating to an action to foreclose a mortgage or deed of trust on residential property. 11 | |
| 21 | + | FOR the purpose of altering certain requirements for an order to docket or a complaint to 3 | |
| 22 | + | foreclose a mortgage or deed of trust on residential property; requiring a secured 4 | |
| 23 | + | party to provide certain loan–related correspondence in order to enforce a materially 5 | |
| 24 | + | delinquent mortgage, subject to certain exceptions; permitting a mortgagor to raise 6 | |
| 25 | + | a defense of laches in an action to enforce a materially delinquent mortgage; and 7 | |
| 26 | + | generally relating to materially delinquent mortgages and foreclosures on 8 | |
| 27 | + | residential property. 9 | |
| 37 | 28 | ||
| 38 | - | BY repealing and reenacting, without amendments, | |
| 39 | - | Article – Real Property | |
| 40 | - | Section 7–105.1(a)(1), (8), and (12) and | |
| 41 | - | Annotated Code of Maryland | |
| 42 | - | (2023 Replacement Volume and 2024 Supplement) | |
| 29 | + | BY repealing and reenacting, without amendments, 10 | |
| 30 | + | Article – Real Property 11 | |
| 31 | + | Section 7–105.1(a)(1), (8), and (12) and (b) 12 | |
| 32 | + | Annotated Code of Maryland 13 | |
| 33 | + | (2023 Replacement Volume and 2024 Supplement) 14 | |
| 43 | 34 | ||
| 44 | - | BY repealing and reenacting, with amendments, 17 | |
| 45 | - | Article – Real Property 18 | |
| 46 | - | Section 7–105.1(e)(1) 7–105.1(e) 19 | |
| 47 | - | Annotated Code of Maryland 20 | |
| 48 | - | (2023 Replacement Volume and 2024 Supplement) 21 2 HOUSE BILL 769 | |
| 35 | + | BY repealing and reenacting, with amendments, 15 | |
| 36 | + | Article – Real Property 16 | |
| 37 | + | Section 7–105.1(e)(1) 17 | |
| 38 | + | Annotated Code of Maryland 18 | |
| 39 | + | (2023 Replacement Volume and 2024 Supplement) 19 | |
| 40 | + | ||
| 41 | + | BY adding to 20 | |
| 42 | + | Article – Real Property 21 | |
| 43 | + | Section 7–105.19 22 | |
| 44 | + | Annotated Code of Maryland 23 | |
| 45 | + | (2023 Replacement Volume and 2024 Supplement) 24 | |
| 46 | + | ||
| 47 | + | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25 | |
| 48 | + | That the Laws of Maryland read as follows: 26 2 HOUSE BILL 769 | |
| 49 | 49 | ||
| 50 | 50 | ||
| 51 | 51 | ||
| 52 | - | BY adding to 1 | |
| 53 | - | Article – Real Property 2 | |
| 54 | - | Section 7–105.19 7–105.1(e–1) 3 | |
| 55 | - | Annotated Code of Maryland 4 | |
| 56 | - | (2023 Replacement Volume and 2024 Supplement) 5 | |
| 52 | + | Article – Real Property 1 | |
| 57 | 53 | ||
| 58 | - | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6 | |
| 59 | - | That the Laws of Maryland read as follows: 7 | |
| 54 | + | 7–105.1. 2 | |
| 60 | 55 | ||
| 61 | - | ||
| 56 | + | (a) (1) In this section the following words have the meanings indicated. 3 | |
| 62 | 57 | ||
| 63 | - | 7–105.1. 9 | |
| 58 | + | (8) “Owner–occupied residential property” means residential property in 4 | |
| 59 | + | which at least one unit is occupied by an individual who: 5 | |
| 64 | 60 | ||
| 65 | - | ( | |
| 61 | + | (i) Has an ownership interest in the property; and 6 | |
| 66 | 62 | ||
| 67 | - | (8) “Owner–occupied residential property” means residential property in 11 | |
| 68 | - | which at least one unit is occupied by an individual who: 12 | |
| 63 | + | (ii) Uses the property as the individual’s primary residence. 7 | |
| 69 | 64 | ||
| 70 | - | (i) Has an ownership interest in the property; and 13 | |
| 65 | + | (12) “Residential property” means real property improved by four or fewer 8 | |
| 66 | + | single family dwelling units that are designed principally and are intended for human 9 | |
| 67 | + | habitation. 10 | |
| 71 | 68 | ||
| 72 | - | (ii) Uses the property as the individual’s primary residence. 14 | |
| 69 | + | (b) (1) Except as provided in paragraph (2) of this subsection, an action to 11 | |
| 70 | + | foreclose a mortgage or deed of trust on residential property may not be filed until the later 12 | |
| 71 | + | of: 13 | |
| 73 | 72 | ||
| 74 | - | (12) “Residential property” means real property improved by four or fewer 15 | |
| 75 | - | single family dwelling units that are designed principally and are intended for human 16 | |
| 76 | - | habitation. 17 | |
| 73 | + | (i) 90 days after a default in a condition on which the mortgage or 14 | |
| 74 | + | deed of trust provides that a sale may be made; or 15 | |
| 77 | 75 | ||
| 78 | - | (b) (1) Except as provided in paragraph (2) of this subsection, an action to 18 | |
| 79 | - | foreclose a mortgage or deed of trust on residential property may not be filed until the later 19 | |
| 80 | - | of: 20 | |
| 76 | + | (ii) 45 days after the notice of intent to foreclose required under 16 | |
| 77 | + | subsection (c) of this section is sent. 17 | |
| 81 | 78 | ||
| 82 | - | (i) | |
| 83 | - | deed of trust | |
| 79 | + | (2) (i) The secured party may petition the circuit court for leave to 18 | |
| 80 | + | immediately commence an action to foreclose the mortgage or deed of trust if: 19 | |
| 84 | 81 | ||
| 85 | - | | |
| 86 | - | ||
| 82 | + | 1. The loan secured by the mortgage or deed of trust was 20 | |
| 83 | + | obtained by fraud or deception; 21 | |
| 87 | 84 | ||
| 88 | - | | |
| 89 | - | ||
| 85 | + | 2. No payments have ever been made on the loan secured by 22 | |
| 86 | + | the mortgage or deed of trust; 23 | |
| 90 | 87 | ||
| 91 | - | | |
| 92 | - | ||
| 88 | + | 3. The property subject to the mortgage or deed of trust has 24 | |
| 89 | + | been destroyed; 25 | |
| 93 | 90 | ||
| 94 | - | 2. No payments have ever been made on the loan secured by 29 | |
| 95 | - | the mortgage or deed of trust; 30 | |
| 96 | - | HOUSE BILL 769 3 | |
| 91 | + | 4. The default occurred after the stay has been lifted in a 26 | |
| 92 | + | bankruptcy proceeding; or 27 | |
| 93 | + | ||
| 94 | + | 5. The property subject to the mortgage or deed of trust is 28 | |
| 95 | + | property that is vacant and abandoned as provided under § 7–105.18 of this subtitle. 29 | |
| 96 | + | ||
| 97 | + | (ii) The court may rule on the petition with or without a hearing. 30 HOUSE BILL 769 3 | |
| 97 | 98 | ||
| 98 | 99 | ||
| 99 | - | 3. The property subject to the mortgage or deed of trust has 1 | |
| 100 | - | been destroyed; 2 | |
| 101 | 100 | ||
| 102 | - | 4. The default occurred after the stay has been lifted in a 3 | |
| 103 | - | bankruptcy proceeding; or 4 | |
| 101 | + | (iii) If the petition is granted: 1 | |
| 104 | 102 | ||
| 105 | - | | |
| 106 | - | ||
| 103 | + | 1. The action may be filed at any time after a default in a 2 | |
| 104 | + | condition on which the mortgage or deed of trust provides that a sale may be made; and 3 | |
| 107 | 105 | ||
| 108 | - | (ii) The court may rule on the petition with or without a hearing. 7 | |
| 106 | + | 2. The secured party need not send the written notice of 4 | |
| 107 | + | intent to foreclose required under subsection (c) of this section. 5 | |
| 109 | 108 | ||
| 110 | - | (iii) If the petition is granted: 8 | |
| 109 | + | (e) An order to docket or a complaint to foreclose a mortgage or deed of trust on 6 | |
| 110 | + | residential property shall: 7 | |
| 111 | 111 | ||
| 112 | - | 1. The action may be filed at any time after a default in a 9 | |
| 113 | - | condition on which the mortgage or deed of trust provides that a sale may be made; and 10 | |
| 112 | + | (1) Include: 8 | |
| 114 | 113 | ||
| 115 | - | 2. The secured party need not send the written notice of 11 | |
| 116 | - | intent to foreclose required under subsection (c) of this section. 12 | |
| 114 | + | (i) If applicable, the license number of: 9 | |
| 117 | 115 | ||
| 118 | - | (e) An order to docket or a complaint to foreclose a mortgage or deed of trust on 13 | |
| 119 | - | residential property shall: 14 | |
| 116 | + | 1. The mortgage originator; and 10 | |
| 120 | 117 | ||
| 121 | - | | |
| 118 | + | 2. The mortgage lender; and 11 | |
| 122 | 119 | ||
| 123 | - | ( | |
| 120 | + | (ii) An affidavit stating: 12 | |
| 124 | 121 | ||
| 125 | - | 1. The mortgage originator; and 17 | |
| 122 | + | 1. The date on which the default occurred and the nature of 13 | |
| 123 | + | the default; [and] 14 | |
| 126 | 124 | ||
| 127 | - | 2. The mortgage lender; and 18 | |
| 125 | + | 2. A. WHETHER THE DEBT INST RUMENT 15 | |
| 126 | + | CONSTITUTES A MATERI ALLY DELINQUENT MORT GAGE WITHIN THE MEAN ING OF § 16 | |
| 127 | + | 7–105.19 OF THIS SUBTITLE; AND 17 | |
| 128 | 128 | ||
| 129 | - | (ii) An affidavit stating: 19 | |
| 129 | + | B. IF THE DEBT INSTRUMEN T IS A MATERIALLY 18 | |
| 130 | + | DELINQUENT MORTGAGE WITHIN THE MEANING O F § 7–105.19 OF THIS SUBTITLE , 19 | |
| 131 | + | THAT THE SECURED PAR TY HAS SATISFIED ANY REQUIREMENTS FOR INS TITUTING 20 | |
| 132 | + | FORECLOSURE UNDER TH AT SECTION; AND 21 | |
| 130 | 133 | ||
| 131 | - | 1. The date on which the default occurred and the nature of 20 | |
| 132 | - | the default; [and] 21 | |
| 134 | + | [2.] 3. If applicable, that: 22 | |
| 133 | 135 | ||
| 134 | - | ||
| 135 | - | ||
| 136 | - | ||
| 136 | + | A. A notice of intent to foreclose was sent to the mortgagor or 23 | |
| 137 | + | grantor in accordance with subsection (c) of this section and the date on which the notice 24 | |
| 138 | + | was sent; and 25 | |
| 137 | 139 | ||
| 138 | - | B. IF THE DEBT INSTRUMEN T IS A MATERIALLY 25 | |
| 139 | - | DELINQUENT MORTGAGE WITHIN THE MEANING O F § 7–105.19 OF THIS SUBTITLE , 26 | |
| 140 | - | THAT THE SECURED PARTY HAS SAT ISFIED ANY REQUIREME NTS FOR INSTITUTING 27 | |
| 141 | - | FORECLOSURE UNDER TH AT SECTION; AND 28 | |
| 140 | + | B. At the time the notice of intent to foreclose was sent, the 26 | |
| 141 | + | contents of the notice of intent to foreclose were accurate; and 27 | |
| 142 | 142 | ||
| 143 | - | ||
| 143 | + | 7–105.19. 28 | |
| 144 | 144 | 4 HOUSE BILL 769 | |
| 145 | 145 | ||
| 146 | 146 | ||
| 147 | - | A. A notice of intent to foreclose was sent to the mortgagor or 1 | |
| 148 | - | grantor in accordance with subsection (c) of this section and the date on which the notice 2 | |
| 149 | - | was sent; and 3 | |
| 147 | + | (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1 | |
| 148 | + | INDICATED. 2 | |
| 150 | 149 | ||
| 151 | - | B. At the time the notice of intent to foreclose was sent, the 4 | |
| 152 | - | contents of the notice of intent to foreclose were accurate; and 5 | |
| 150 | + | (2) “BILLING CYCLE” MEANS: 3 | |
| 153 | 151 | ||
| 154 | - | (2) Be accompanied by: 6 | |
| 152 | + | (I) IF A MORTGAGE REQUIRE S PERIODIC PAYMENTS AT 4 | |
| 153 | + | INTERVALS OF 3 MONTHS OR LESS , THE INTERVAL BETWEEN THE DAYS OR DATES OF 5 | |
| 154 | + | REGULAR PERIODIC PAY MENTS REQUIRED BY TH E TERMS OF THE MORTG AGE; OR 6 | |
| 155 | 155 | ||
| 156 | - | (i) The original or a certified copy of the mortgage or deed of trust; 7 | |
| 156 | + | (II) IF THE MORTGAGE TERMS DO NOT REQUIRE PERIO DIC 7 | |
| 157 | + | PAYMENTS OR REQUIRE PERIODIC PAYMENTS ON INTERVALS GREATER THAN 3 8 | |
| 158 | + | MONTHS, EVERY 3 MONTHS. 9 | |
| 157 | 159 | ||
| 158 | - | (ii) A statement of the debt remaining due and payable supported by 8 | |
| 159 | - | an affidavit of the plaintiff or the secured party or the agent or attorney of the plaintiff or 9 | |
| 160 | - | secured party; 10 | |
| 160 | + | (3) “LOAN–RELATED CORRESPONDEN CE” MEANS WRITTEN 10 | |
| 161 | + | COMMUNICATION FROM A SECURED PARTY TO A M ORTGAGOR THAT : 11 | |
| 161 | 162 | ||
| 162 | - | (iii) A copy of the debt instrument accompanied by an affidavit 11 | |
| 163 | - | certifying ownership of the debt instrument; 12 | |
| 163 | + | (I) IF THE SECURED PARTY IS REQUIRED TO PROVI DE 12 | |
| 164 | + | PERIODIC STATEMENTS UNDER 12 C.F.R. § 1026.41, COMPLIES WITH THE 13 | |
| 165 | + | REQUIREMENTS OF THAT PROVISION; OR 14 | |
| 164 | 166 | ||
| 165 | - | ( | |
| 166 | - | ||
| 167 | + | (II) IF THE SECURED PARTY IS NOT REQUIRED TO P ROVIDE 15 | |
| 168 | + | PERIODIC STATEMENTS UNDER 12 C.F.R. § 1026.41, CONTAINS THE FOLLOWI NG: 16 | |
| 167 | 169 | ||
| 168 | - | | |
| 169 | - | ||
| 170 | + | 1. THE NAME AND CONTACT INFORMATION OF THE 17 | |
| 171 | + | SECURED PARTY ; 18 | |
| 170 | 172 | ||
| 171 | - | (vi) If applicable, a copy of the notice of intent to foreclose; 17 | |
| 173 | + | 2. THE CURRENT AMOUNT OF THE OUTSTANDING 19 | |
| 174 | + | PRINCIPAL BALANCE ; 20 | |
| 172 | 175 | ||
| 173 | - | (vii) If the secured party and mortgagor or grantor have elected to 18 | |
| 174 | - | participate in prefile mediation, the report of the prefile mediation issued by the Office of 19 | |
| 175 | - | Administrative Hearings; 20 | |
| 176 | + | 3. THE CURRENT INTEREST RATE IN EFFECT; 21 | |
| 176 | 177 | ||
| 177 | - | (viii) If the secured party and the mortgagor or grantor have not 21 | |
| 178 | - | elected to participate in prefile mediation, a statement that the parties have not elected to 22 | |
| 179 | - | participate in prefile mediation; 23 | |
| 178 | + | 4. THE AMOUNT CURRENTLY DUE DISAGGREGATED BY 22 | |
| 179 | + | PRINCIPAL, INTEREST, CHARGES, AND FEES; AND 23 | |
| 180 | 180 | ||
| 181 | - | | |
| 182 | - | the | |
| 181 | + | 5. THE LENGTH OF ANY PAY MENT DELINQUENCY , 24 | |
| 182 | + | INCLUDING THE DATE O F LAST PAYMENT . 25 | |
| 183 | 183 | ||
| 184 | - | (x) 1. If the loss mitigation analysis has been completed subject 26 | |
| 185 | - | to subsection (g) of this section, a final loss mitigation affidavit in the form prescribed by 27 | |
| 186 | - | regulation adopted by the Commissioner of Financial Regulation; and 28 | |
| 187 | - | ||
| 188 | - | 2. If the loss mitigation analysis has not been completed, a 29 | |
| 189 | - | preliminary loss mitigation affidavit in the form prescribed by regulation adopted by the 30 | |
| 190 | - | Commissioner of Financial Regulation; AND 31 | |
| 191 | - | ||
| 192 | - | (3) BE COMMENCED NOT LATE R THAN 10 YEARS AFTER THE DATE OF 32 | |
| 193 | - | DEFAULT CLAIMED IN T HE ORDER TO DOCKET O R COMPLAINT TO FOREC LOSE. 33 HOUSE BILL 769 5 | |
| 184 | + | (4) “MATERIALLY DELINQUENT MORTGAGE ” MEANS A MORTGAGE ON 26 | |
| 185 | + | WHICH NO PAYMENTS HA VE BEEN MADE BY A PA RTY, OTHER THAN THE SECUR ED 27 | |
| 186 | + | PARTY, IN THE PRECEDING 5 YEARS, EXCLUDING ANY PERIOD OF TIME IN WHICH A 28 | |
| 187 | + | SECURED PARTY COULD NOT INSTITUTE A FORE CLOSURE PROCEE DING DUE TO AN 29 | |
| 188 | + | EXECUTIVE ORDER OR O THER SIMILAR OFFICIA L ACTION RESTRICTING 30 | |
| 189 | + | FORECLOSURE ACTIONS . 31 | |
| 190 | + | HOUSE BILL 769 5 | |
| 194 | 191 | ||
| 195 | 192 | ||
| 193 | + | (5) “MORTGAGE” MEANS ANY MORTGAGE O R DEED OF TRUST 1 | |
| 194 | + | ENCUMBERING OWNER –OCCUPIED RESIDENTIAL PROPERTY. 2 | |
| 196 | 195 | ||
| 197 | - | (E–1) IF A FORECLOSURE IS C OMMENCED BY A SECURE D PARTY THAT 1 | |
| 198 | - | ACQUIRED DEBT THAT W AS IN DEFAULT FOR 5 OR MORE YEARS BEFORE THE 2 | |
| 199 | - | ACQUISITION, THE SECURED PARTY SH ALL PRESENT THE DOCU MENTS REQUIRED 3 | |
| 200 | - | UNDER § 5–1203(B) OF THE COURTS ARTICLE WITH THE ORDE R TO DOCKET OR 4 | |
| 201 | - | COMPLAINT TO FORECLOS E. 5 | |
| 196 | + | (6) “MORTGAGOR” MEANS ANY PARTY SIGN ING A MORTGAGE AS A 3 | |
| 197 | + | MORTGAGOR OR A DEED OF TRUST AS A GRANTO R. 4 | |
| 202 | 198 | ||
| 203 | - | 7–105.19. 6 | |
| 199 | + | (7) “OWNER–OCCUPIED RESIDENTIAL PROPERTY” HAS THE MEANING 5 | |
| 200 | + | STATED IN § 7–105.1 OF THIS SUBTITLE. 6 | |
| 204 | 201 | ||
| 205 | - | ( | |
| 206 | - | ||
| 202 | + | (8) “RESIDENTIAL PROPERTY ” HAS THE MEANING STAT ED IN § 7 | |
| 203 | + | 7–105.1 OF THIS SUBTITLE . 8 | |
| 207 | 204 | ||
| 208 | - | (2) “BILLING CYCLE” MEANS: 9 | |
| 205 | + | (9) “SECURED PARTY ” MEANS AN OWNER , A SERVICER, OR ANY 9 | |
| 206 | + | OTHER PERSON ENTITLE D TO ENFORCE A MORTG AGE OR A DEED OF TRU ST. 10 | |
| 209 | 207 | ||
| 210 | - | (I) IF A MORTGAGE REQUIRE S PERIODIC PAYMENTS AT 10 | |
| 211 | - | INTERVALS OF 3 MONTHS OR LESS , THE INTERVAL BETWEEN THE DAYS OR DATES OF 11 | |
| 212 | - | REGULAR PERIODIC PAY MENTS REQUIRED BY TH E TERMS OF THE MORTG AGE; OR 12 | |
| 208 | + | (B) (1) THIS SUBSECTION MAY N OT BE INTERPRETED TO : 11 | |
| 213 | 209 | ||
| 214 | - | (II) IF THE MORTGAGE TERMS DO NOT REQUIRE PERIO DIC 13 | |
| 215 | - | PAYMENTS OR REQUIRE PERIODIC PAYMENTS ON INTERVALS GREATER TH AN 3 14 | |
| 216 | - | MONTHS, EVERY 3 MONTHS. 15 | |
| 210 | + | (I) PROHIBIT THE FILING O F A PETITION UNDER § 12 | |
| 211 | + | 7–105.1(B)(2) OF THIS SUBTITLE; OR 13 | |
| 217 | 212 | ||
| 218 | - | (3) “LOAN–RELATED CORRESPONDENCE ” MEANS WRITTEN 16 | |
| 219 | - | COMMUNICATION FROM A SECURED PARTY TO A M ORTGAGOR THAT : 17 | |
| 213 | + | (II) PRECLUDE THE COURT FROM GRANT ING A PETITION WITH 14 | |
| 214 | + | RESPECT TO A MATERIA LLY DELINQUENT MORTG AGE UNDER § 7–105.1(B)(2) OF 15 | |
| 215 | + | THIS SUBTITLE. 16 | |
| 220 | 216 | ||
| 221 | - | ( | |
| 222 | - | ||
| 223 | - | ||
| 217 | + | (2) UNLESS PROHIBITED BY LAW, REGULATION , OR EXECUTIVE 17 | |
| 218 | + | ORDER, A SECURED PARTY SHAL L SEND LOAN–RELATED CORRESPONDEN CE TO THE 18 | |
| 219 | + | MORTGAGOR OF A MATERIALLY DELINQUENT MORTGAGE IN EACH BILLING CYCL E. 19 | |
| 224 | 220 | ||
| 225 | - | (II) IF THE SECURED PARTY IS NOT R EQUIRED TO PROVIDE 21 | |
| 226 | - | PERIODIC STATEMENTS UNDER 12 C.F.R. § 1026.41, CONTAINS THE FOLLOWI NG: 22 | |
| 221 | + | (3) PRIOR TO OCTOBER 1, 2027, A SECURED PARTY MAY ENFORCE A 20 | |
| 222 | + | MATERIALLY DELINQUEN T MORTGAGE THROUGH C OMMENCEMENT OF A 21 | |
| 223 | + | FORECLOSURE OR JUDIC IAL SALE ONLY IF: 22 | |
| 227 | 224 | ||
| 228 | - | 1. THE NAME AND CONTACT INFORMATION OF THE 23 | |
| 229 | - | SECURED PARTY ; 24 | |
| 225 | + | (I) AT LEAST ONE PIECE OF LOAN–RELATED 23 | |
| 226 | + | CORRESPONDENCE WAS S ENT TO THE MORTGAGOR DURING EACH BILLING CYCLE 24 | |
| 227 | + | FOR THE IMMEDIATELY PRECEDING 24 MONTHS, EXCLUDING ANY PERIOD DURING 25 | |
| 228 | + | WHICH THE SECURED PA RTY WAS PROHIBITED B Y LAW, REGULATION , OR 26 | |
| 229 | + | EXECUTIVE ORDER FROM SENDING LOAN –RELATED CORRESP ONDENCE TO THE 27 | |
| 230 | + | MORTGAGOR ; OR 28 | |
| 230 | 231 | ||
| 231 | - | 2. THE CURRENT AMOUNT OF THE OUTSTANDING 25 | |
| 232 | - | PRINCIPAL BALANCE ; 26 | |
| 233 | - | ||
| 234 | - | 3. THE CURREN T INTEREST RATE IN E FFECT; 27 | |
| 235 | - | ||
| 236 | - | 4. THE AMOUNT CURRENTLY DUE DISAGGREGATED BY 28 | |
| 237 | - | PRINCIPAL, INTEREST, CHARGES, AND FEES; AND 29 | |
| 232 | + | (II) ON A FORM PROVIDED BY THE COMMISSIONER OF 29 | |
| 233 | + | FINANCIAL REGULATION, THE SECURED PARTY SERVES NOTICE ON THE 30 | |
| 234 | + | MORTGAGOR OF THE MAT ERIALLY DELINQUENT M ORTGAGE AT LEAST 90 DAYS 31 | |
| 235 | + | PRIOR TO COMMENCEMEN T. 32 | |
| 238 | 236 | 6 HOUSE BILL 769 | |
| 239 | 237 | ||
| 240 | 238 | ||
| 241 | - | 5. THE LENGTH OF ANY PAY MENT DELINQUENCY , 1 | |
| 242 | - | INCLUDING THE DATE O F LAST PAYMENT . 2 | |
| 239 | + | (4) ON OR AFTER OCTOBER 1, 2027, A SECURED PARTY MAY ENFORCE 1 | |
| 240 | + | A MATERIALLY DELINQU ENT MORTGAGE THROUGH A FORECLOSURE OR JUD ICIAL 2 | |
| 241 | + | SALE ONLY IF THE SEC URED PARTY HAS MET T HE REQUIREMENTS OF P ARAGRAPH 3 | |
| 242 | + | (2) OF THIS SUBSECTION F OR THE IMMEDIATELY P RECEDING 24 CONSECUTIVE 4 | |
| 243 | + | MONTHS. 5 | |
| 243 | 244 | ||
| 244 | - | (4) “MATERIALLY DELINQUENT MORTGAGE ” MEANS A MORTGAGE ON 3 | |
| 245 | - | WHICH NO PAYMENTS HA VE BEEN MADE BY A PA RTY, OTHER THAN THE SECUR ED 4 | |
| 246 | - | PARTY, IN THE PRECEDING 5 YEARS, EXCLUDING ANY PERIOD OF TIME IN WHICH A 5 | |
| 247 | - | SECURED PARTY COULD NOT INSTITUTE A FORE CLOSURE PROCEEDING D UE TO AN 6 | |
| 248 | - | EXECUTIVE ORDER OR O THER SIMILAR O FFICIAL ACTION RESTR ICTING 7 | |
| 249 | - | FORECLOSURE ACTIONS . 8 | |
| 245 | + | (5) THE COMMISSIONER OF FINANCIAL REGULATION MAY DEVELO P 6 | |
| 246 | + | THE FORM REQUIRED UN DER PARAGRAPH (3)(II) OF THIS SUBSECTION B Y 7 | |
| 247 | + | REGULATION . 8 | |
| 250 | 248 | ||
| 251 | - | (5) “MORTGAGE” MEANS ANY MORTGAGE O R DEED OF TRUST 9 | |
| 252 | - | ENCUMBERING OWNER –OCCUPIED RESIDENTIAL PROPERTY. 10 | |
| 249 | + | (C) (1) IN AN ACTION TO FOREC LOSE OR OTHERWISE EN FORCE A 9 | |
| 250 | + | MATERIALLY DELINQUEN T MORTGAGE , A MORTGAGOR MAY RAIS E A DEFENSE OF 10 | |
| 251 | + | LACHES. 11 | |
| 253 | 252 | ||
| 254 | - | (6) “MORTGAGOR” MEANS ANY PARTY SIGN ING A MORTGAGE AS A 11 | |
| 255 | - | MORTGAGOR OR A DEED OF TRUST AS A GRANTO R. 12 | |
| 253 | + | (2) A COURT CONSIDERING A DEFENSE OF LACHES IN AN ACTION TO 12 | |
| 254 | + | FORECLOSE OR OTHERWI SE ENFORCE A MATERIA LLY DELINQUENT MORTG AGE 13 | |
| 255 | + | MAY: 14 | |
| 256 | 256 | ||
| 257 | - | (7) “OWNER–OCCUPIED RESIDENTIAL PROPERTY” HAS THE MEANING 13 | |
| 258 | - | STATED IN § 7–105.1 OF THIS SUBTITLE. 14 | |
| 257 | + | (I) ATTRIBUTE ANY DELAY I N THE ENFORCEMENT OF THE 15 | |
| 258 | + | MORTGAGE TO THE SECU RED PARTY EVEN IF TH E SECURED PARTY DID NOT HOLD 16 | |
| 259 | + | AN INTEREST IN THE M ORTGAGE AT ALL TIMES DURING THE DELAY IN 17 | |
| 260 | + | ENFORCEMENT ; AND 18 | |
| 259 | 261 | ||
| 260 | - | ( | |
| 261 | - | ||
| 262 | + | (II) ORDER ANY RELIEF THE COURT CONSIDERS TO B E 19 | |
| 263 | + | APPROPRIATE . 20 | |
| 262 | 264 | ||
| 263 | - | (9) “SECURED PARTY ” MEANS AN OWNER , A SERVICER, OR ANY 17 | |
| 264 | - | OTHER PERSON ENTITLED TO ENFORCE A MORTGAGE OR A DEED OF TRUST. 18 | |
| 265 | - | ||
| 266 | - | (B) (1) THIS SUBSECTION MAY N OT BE INTERPRETED TO : 19 | |
| 267 | - | ||
| 268 | - | (I) PROHIBIT THE FILING O F A PETITION UNDER § 20 | |
| 269 | - | 7–105.1(B)(2) OF THIS SUBTITLE; OR 21 | |
| 270 | - | ||
| 271 | - | (II) PRECLUDE THE COURT FR OM GRANTING A PETITI ON WITH 22 | |
| 272 | - | RESPECT TO A MATERIALLY DELI NQUENT MORTGAGE UNDE R § 7–105.1(B)(2) OF 23 | |
| 273 | - | THIS SUBTITLE. 24 | |
| 274 | - | ||
| 275 | - | (2) UNLESS PROHIBITED BY LAW, REGULATION , OR EXECUTIVE 25 | |
| 276 | - | ORDER, A SECURED PARTY SHAL L SEND LOAN–RELATED CORRESPONDEN CE TO THE 26 | |
| 277 | - | MORTGAGOR OF A MATER IALLY DELINQUENT MOR TGAGE IN EACH BILLING CYCLE. 27 | |
| 278 | - | ||
| 279 | - | (3) PRIOR TO OCTOBER 1, 2027, A SECURED PARTY MAY ENFORCE A 28 | |
| 280 | - | MATERIALLY DELINQUEN T MORTGAGE THROUGH C OMMENCEMENT OF A 29 | |
| 281 | - | FORECLOSURE OR JUDIC IAL SALE ONLY IF: 30 | |
| 282 | - | ||
| 283 | - | (I) AT LEAST ONE PIECE OF LOAN–RELATED 31 | |
| 284 | - | CORRESPONDENCE WAS S ENT TO THE MORTGAG OR DURING EACH BILLI NG CYCLE 32 HOUSE BILL 769 7 | |
| 285 | - | ||
| 286 | - | ||
| 287 | - | FOR THE IMMEDIATELY PRECEDING 24 MONTHS, EXCLUDING ANY PERIOD DURING 1 | |
| 288 | - | WHICH THE SECURED PA RTY WAS PROHIBITED B Y LAW, REGULATION , OR 2 | |
| 289 | - | EXECUTIVE ORDER FROM SENDING LOAN –RELATED CORRESPONDEN CE TO THE 3 | |
| 290 | - | MORTGAGOR ; OR 4 | |
| 291 | - | ||
| 292 | - | (II) ON A FORM PROVIDED BY THE COMMISSIONER OF 5 | |
| 293 | - | FINANCIAL REGULATION, THE SECURED PARTY SE RVES NOTICE ON THE 6 | |
| 294 | - | MORTGAGOR OF THE MAT ERIALLY DELINQUENT M ORTGAGE AT LEAST 90 DAYS 7 | |
| 295 | - | PRIOR TO COMMENCEMEN T. 8 | |
| 296 | - | ||
| 297 | - | (4) ON OR AFTER OCTOBER 1, 2027, A SECURED PARTY MAY ENFORCE 9 | |
| 298 | - | A MATERIAL LY DELINQUENT MORTGA GE THROUGH A FORECLO SURE OR JUDICIAL 10 | |
| 299 | - | SALE ONLY IF THE SEC URED PARTY HAS MET T HE REQUIREMENTS OF P ARAGRAPH 11 | |
| 300 | - | (2) OF THIS SUBSECTION F OR THE IMMEDIATELY P RECEDING 24 CONSECUTIVE 12 | |
| 301 | - | MONTHS. 13 | |
| 302 | - | ||
| 303 | - | (5) THE COMMISSIONER OF FINANCIAL REGULATION MAY DE VELOP 14 | |
| 304 | - | THE FORM REQUIRED UN DER PARAGRAPH (3)(II) OF THIS SUBSECTION B Y 15 | |
| 305 | - | REGULATION . 16 | |
| 306 | - | ||
| 307 | - | (C) (1) IN AN ACTION TO FOREC LOSE OR OTHERWISE EN FORCE A 17 | |
| 308 | - | MATERIALLY DELINQUEN T MORTGAGE , A MORTGAGOR MAY RAIS E A DEFENSE OF 18 | |
| 309 | - | LACHES. 19 | |
| 310 | - | ||
| 311 | - | (2) A COURT CONSIDERING A DEFENSE OF LACHES IN AN ACTION TO 20 | |
| 312 | - | FORECLOSE OR OTHERWI SE ENFORCE A MATERIA LLY DELINQUENT MORTG AGE 21 | |
| 313 | - | MAY: 22 | |
| 314 | - | ||
| 315 | - | (I) ATTRIBUTE ANY DELAY I N THE ENFORCEMENT OF THE 23 | |
| 316 | - | MORTGAGE TO THE SECU RED PARTY EVEN IF TH E SECURED PARTY DID NOT HOLD 24 | |
| 317 | - | AN INTEREST IN THE M ORTGAGE AT ALL TIMES DURING THE DELAY IN 25 | |
| 318 | - | ENFORCEMENT ; AND 26 | |
| 319 | - | ||
| 320 | - | (II) ORDER ANY RELIEF THE COURT CONSIDERS TO B E 27 | |
| 321 | - | APPROPRIATE . 28 | |
| 322 | - | ||
| 323 | - | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 29 | |
| 324 | - | January 1, 2026 June 1, 2025. 30 | |
| 325 | - | ||
| 265 | + | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 21 | |
| 266 | + | January 1, 2026. 22 |