EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*sb0682*
SENATE BILL 682
N1 5lr2796
CF HB 769
By: Senator Charles
Introduced and read first time: January 26, 2025
Assigned to: Judicial Proceedings
A BILL ENTITLED
AN ACT concerning 1
Real Property – Residential Foreclosures – Materially Delinquent Mortgages 2
FOR the purpose of altering certain requirements for an order to docket or a complaint to 3
foreclose a mortgage or deed of trust on residential property; requiring a secured 4
party to provide certain loan–related correspondence in order to enforce a materially 5
delinquent mortgage, subject to certain exceptions; permitting a mortgagor to raise 6
a defense of laches in an action to enforce a materially delinquent mortgage; and 7
generally relating to materially delinquent mortgages and foreclosures on 8
residential property. 9
BY repealing and reenacting, without amendments, 10
Article – Real Property 11
Section 7–105.1(a)(1), (8), and (12) and (b) 12
Annotated Code of Maryland 13
(2023 Replacement Volume and 2024 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Real Property 16
Section 7–105.1(e)(1) 17
Annotated Code of Maryland 18
(2023 Replacement Volume and 2024 Supplement) 19
BY adding to 20
Article – Real Property 21
Section 7–105.19 22
Annotated Code of Maryland 23
(2023 Replacement Volume and 2024 Supplement) 24
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
That the Laws of Maryland read as follows: 26
2 SENATE BILL 682
Article – Real Property 1
7–105.1. 2
(a) (1) In this section the following words have the meanings indicated. 3
(8) “Owner–occupied residential property” means residential property in 4
which at least one unit is occupied by an individual who: 5
(i) Has an ownership interest in the property; and 6
(ii) Uses the property as the individual’s primary residence. 7
(12) “Residential property” means real property improved by four or fewer 8
single family dwelling units that are designed principally and are intended for human 9
habitation. 10
(b) (1) Except as provided in paragraph (2) of this subsection, an action to 11
foreclose a mortgage or deed of trust on residential property may not be filed until the later 12
of: 13
(i) 90 days after a default in a condition on which the mortgage or 14
deed of trust provides that a sale may be made; or 15
(ii) 45 days after the notice of intent to foreclose required under 16
subsection (c) of this section is sent. 17
(2) (i) The secured party may petition the circuit court for leave to 18
immediately commence an action to foreclose the mortgage or deed of trust if: 19
1. The loan secured by the mortgage or deed of trust was 20
obtained by fraud or deception; 21
2. No payments have ever been made on the loan secured by 22
the mortgage or deed of trust; 23
3. The property subject to the mortgage or deed of trust has 24
been destroyed; 25
4. The default occurred after the stay has been lifted in a 26
bankruptcy proceeding; or 27
5. The property subject to the mortgage or deed of trust is 28
property that is vacant and abandoned as provided under § 7–105.18 of this subtitle. 29
(ii) The court may rule on the petition with or without a hearing. 30
SENATE BILL 682 3
(iii) If the petition is granted: 1
1. The action may be filed at any time after a default in a 2
condition on which the mortgage or deed of trust provides that a sale may be made; and 3
2. The secured party need not send the written notice of 4
intent to foreclose required under subsection (c) of this section. 5
(e) An order to docket or a complaint to foreclose a mortgage or deed of trust on 6
residential property shall: 7
(1) Include: 8
(i) If applicable, the license number of: 9
1. The mortgage originator; and 10
2. The mortgage lender; and 11
(ii) An affidavit stating: 12
1. The date on which the default occurred and the nature of 13
the default; [and] 14
2. A. WHETHER THE DEBT INST RUMENT 15
CONSTITUTES A MATERI ALLY DELINQUENT MORT GAGE WITHIN THE MEAN ING OF § 16
7–105.19 OF THIS SUBTITLE; AND 17
B. IF THE DEBT INSTRUMEN T IS A MATER IALLY 18
DELINQUENT MORTGAGE WITHIN THE MEANING O F § 7–105.19 OF THIS SUBTITLE , 19
THAT THE SECURED PAR TY HAS SATISFIED ANY REQUIREMENTS FOR INS TITUTING 20
FORECLOSURE UNDER TH AT SECTION; AND 21
[2.] 3. If applicable, that: 22
A. A notice of intent to foreclose was sent to the mortgagor or 23
grantor in accordance with subsection (c) of this section and the date on which the notice 24
was sent; and 25
B. At the time the notice of intent to foreclose was sent, the 26
contents of the notice of intent to foreclose were accurate; and 27
7–105.19. 28
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 29
INDICATED. 30 4 SENATE BILL 682
(2) “BILLING CYCLE” MEANS: 1
(I) IF A MORTGAGE REQUIRE S PERIODIC PAYMENTS AT 2
INTERVALS OF 3 MONTHS OR LESS , THE INTERVAL BETWEEN THE DAYS OR DATES OF 3
REGULAR PERIODIC PAY MENTS REQUIRED BY TH E TERMS OF THE MORTG AGE; OR 4
(II) IF THE MORTGAGE TERMS DO NOT REQUIRE PERIO DIC 5
PAYMENTS OR REQUIRE PERIODIC PAYMENTS ON INTERVALS GREATER TH AN 3 6
MONTHS, EVERY 3 MONTHS. 7
(3) “LOAN–RELATED CORRESPONDEN CE” MEANS WRITTEN 8
COMMUNICATION FROM A SECURED PARTY TO A M ORTGAGOR THAT : 9
(I) IF THE SECURED PARTY IS REQUIRED TO PROVI DE 10
PERIODIC STATEMENTS UNDER 12 C.F.R. § 1026.41, COMPLIES WITH THE 11
REQUIREMENTS OF THAT PROVISION; OR 12
(II) IF THE SECURED PARTY IS NOT REQUIRED TO PROVIDE 13
PERIODIC STATEMENTS UNDER 12 C.F.R. § 1026.41, CONTAINS THE FOLLOWI NG: 14
1. THE NAME AND CONTACT INFORMATION OF THE 15
SECURED PARTY ; 16
2. THE CURRENT AMOUNT OF THE OUTSTANDING 17
PRINCIPAL BALANCE ; 18
3. THE CURRENT INTEREST RATE IN EFFECT; 19
4. THE AMOUNT CURRENTLY DUE DISAGGREGATED BY 20
PRINCIPAL, INTEREST, CHARGES, AND FEES; AND 21
5. THE LENGTH OF ANY PAY MENT DELINQUENCY , 22
INCLUDING THE DATE O F LAST PAYMENT . 23
(4) “MATERIALLY DELINQUENT MORTGAGE ” MEANS A MORTGAGE ON 24
WHICH NO PA YMENTS HAVE BEEN MAD E BY A PARTY, OTHER THAN THE SECUR ED 25
PARTY, IN THE PRECEDING 5 YEARS, EXCLUDING ANY PERIOD OF TIME IN WHICH A 26
SECURED PARTY COULD NOT INSTITUTE A FORE CLOSURE PROCEEDING D UE TO AN 27
EXECUTIVE ORDER OR O THER SIMILAR OFFICIA L ACTION RESTRICT ING 28
FORECLOSURE ACTIONS . 29
(5) “MORTGAGE” MEANS ANY MORTGAGE O R DEED OF TRUST 30
ENCUMBERING OWNER –OCCUPIED RESIDENTIAL PROPERTY. 31 SENATE BILL 682 5
(6) “MORTGAGOR” MEANS ANY PARTY SIGN ING A MORTGAGE AS A 1
MORTGAGOR OR A DEED OF TRUST AS A GRANTO R. 2
(7) “OWNER–OCCUPIED RES IDENTIAL PROPERTY ” HAS THE MEANING 3
STATED IN § 7–105.1 OF THIS SUBTITLE. 4
(8) “RESIDENTIAL PROPERTY ” HAS THE MEANING STAT ED IN § 5
7–105.1 OF THIS SUBTITLE . 6
(9) “SECURED PARTY ” MEANS AN OWNER , A SERVICER, OR ANY 7
OTHER PERSON ENTITLE D TO ENFORCE A MORTG AGE OR A DEED OF TRU ST. 8
(B) (1) THIS SUBSECTION MAY N OT BE INTERPRETED TO : 9
(I) PROHIBIT THE FILING O F A PETITION UNDER § 10
7–105.1(B)(2) OF THIS SUBTITLE; OR 11
(II) PRECLUDE THE COURT FR OM GRANTING A PETITI ON WITH 12
RESPECT TO A MATERIA LLY DELINQUENT MORTGAGE UNDER § 7–105.1(B)(2) OF 13
THIS SUBTITLE. 14
(2) UNLESS PROHIBITED BY LAW, REGULATION , OR EXECUTIVE 15
ORDER, A SECURED PARTY SHAL L SEND LOAN–RELATED CORRESPONDEN CE TO THE 16
MORTGAGOR OF A MATER IALLY DELINQUENT MOR TGAGE IN EACH BILLIN G CYCLE. 17
(3) PRIOR TO OCTOBER 1, 2027, A SECURED PARTY MAY ENFORCE A 18
MATERIALLY DELINQUEN T MORTGAGE THROUGH C OMMENCEMENT OF A 19
FORECLOSURE OR JUDIC IAL SALE ONLY IF: 20
(I) AT LEAST ONE PIECE OF LOAN–RELATED 21
CORRESPONDENCE WAS S ENT TO THE MORTGAGOR DURING EACH BILLING CYCLE 22
FOR THE IMMEDIATELY PRECEDING 24 MONTHS, EXCLUDING ANY PERIOD DURING 23
WHICH THE SECURED PA RTY WAS PROHIBITED B Y LAW, REGULATION , OR 24
EXECUTIVE ORDER FROM SENDING LOAN –RELATED CORRESPONDEN CE TO THE 25
MORTGAGOR ; OR 26
(II) ON A FORM PROVIDED BY THE COMMISSION ER OF 27
FINANCIAL REGULATION, THE SECURED PARTY SER VES NOTICE ON THE 28
MORTGAGOR OF THE MAT ERIALLY DELINQUENT M ORTGAGE AT LEAST 90 DAYS 29
PRIOR TO COMMENCEMEN T. 30
(4) ON OR AFTER OCTOBER 1, 2027, A SECURED PARTY MAY ENFORCE 31
A MATERIALLY DELINQU ENT MORTGAGE THRO UGH A FORECLOSURE OR JUDICIAL 32 6 SENATE BILL 682
SALE ONLY IF THE SEC URED PARTY HAS MET T HE REQUIREMENTS OF P ARAGRAPH 1
(2) OF THIS SUBSECTION F OR THE IMMEDIATELY P RECEDING 24 CONSECUTIVE 2
MONTHS. 3
(5) THE COMMISSIONER OF FINANCIAL REGULATION MAY DEVELO P 4
THE FORM REQUIRED UN DER PARAGRAPH (3)(II) OF THIS SUBSECTION B Y 5
REGULATION . 6
(C) (1) IN AN ACTION TO FOREC LOSE OR OTHERWISE EN FORCE A 7
MATERIALLY DELINQUEN T MORTGAGE , A MORTGAGOR MAY RAIS E A DEFENSE OF 8
LACHES. 9
(2) A COURT CONSIDERING A DEFENSE OF LACHES IN AN ACTION TO 10
FORECLOSE OR OTHERWISE E NFORCE A MATERIALLY DELINQUENT MORTGAGE 11
MAY: 12
(I) ATTRIBUTE ANY DELAY I N THE ENFORCEMENT OF THE 13
MORTGAGE TO THE SECU RED PARTY EVEN IF TH E SECURED PARTY DID NOT HOLD 14
AN INTEREST IN THE M ORTGAGE AT ALL TIMES DURING THE DELAY IN 15
ENFORCEMENT; AND 16
(II) ORDER ANY RELIEF THE COURT CONSIDERS TO B E 17
APPROPRIATE . 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
January 1, 2026. 20