-
Reformed State Law
2008 Session of the General Assembly
-
SB 218 /
HB 361 – Protection of Homeowners in Foreclosure - Prohibition on Foreclosure
Rescue Transactions - Enforcement – An emergency bill that bans foreclosure rescue
transactions that scam homeowners out of their homes and the equity they’ve built.
Provides additional consumer protections for people who are trying to sell their
homes because they are in default.
-
SB 270 /
HB 363 – Credit Regulation - Mortgage Lending and Other Extensions of Credit
- Requires lenders to verify a borrower’s ability to repay a loan; authorizes the
Commissioner of Financial Regulation to set mortgage lender licensing fees and examination
requirements; and expands the licensing requirements for mortgage lenders and mortgage
originators.
-
SB 217 /
HB 360 – Real Property - Maryland Mortgage Fraud Protection Act - A comprehensive
criminal mortgage fraud statute that makes mortgage fraud a crime for anyone involved
in the mortgage transaction.
-
SB 216 /
HB 365 – Real Property - Recordation of Instruments Securing Mortgage Loans
and Foreclosure of Mortgages and Deeds of Trust on Residential Property - Significantly
lengthens the foreclosure process from 15 days to approximately 150 days, making
it fairer for homeowners and providing them with more time and notice before a foreclosure
sale.
2009 Session of the General Assembly
-
SB 842 /
HB 776 – Real Property - Foreclosure of Mortgages and Deeds of Trust on
Residential Property - Notice to Occupant - Enhances notice requirements passed
during the 2008 legislative session to now also include occupants to help inform
renters of foreclosure actions pending against their landlord.
-
SB 269 /
HB 292 - Financial Institutions - Mortgage Lenders and Mortgage Loan Originators
- Revises the State’s mortgage lender and mortgage loan originator laws to conform
to the requirements of the federal Secure and Fair Enforcement Mortgage Licensing
Act of 2008 (SAFE Mortgage Licensing Act).
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Targeted Assistance to those Most in Need
Maryland has worked to target assistance to Maryland communities most affected by
foreclosure through data analysis and research. Foreclosure statistics by jurisdiction,
as well as other research and information on foreclosure is available
here.
Foreclosure Events
in Maryland, 2009 Q1
|
Foreclosure Activity in
Maryland, 2008 & 2009
|
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Helped Homeowners Find Assistance by Organizing and Facilitating Financial Support
for Counseling
DHCD supports a network of 31 nonprofit agencies to provide foreclosure prevention
assistance Statewide. The funds that have been allocated support operating costs
for the agencies that are providing assistance. In FY 2008 and FY 2009, Maryland Housing Counselors assisted more than 23,000 individuals achieving more than 7,900 Positive Outcomes.
DHCD continues to provide quarterly training sessions for all the counselors in
the network.
Financial Support for Housing Counseling, 2007 – 2009
|
Funding Initiative |
Amount |
|
TOTAL |
$5,682,450 |
|
HOPE Round One, Summer 2007 |
$1,299,493 |
|
HOPE Round Two, Spring 2008 |
$1,751,697 |
|
HOPE Round Three, Spring 2009 |
$2,131,260 |
|
Supplemental Funding From Governor, Spring 2009 |
$500,000 |
Counseling Financial
Assistance, FY07 - FY09
|
Housing Counseling
Activity FY09
|
MD Housing Counseling
Activity, February - June 2009
|
-
Implemented New Loan Products
Helping those in danger of foreclosure with refinancing programs.
Lifeline Refinance Mortgage Program
- 52 Loans for $12,987,260
Homesaver Program - 22 Loans for
$6,169,511
Bridge to Hope - 51 Loans for $520,890
-
Coordinated Legal Assistance
The Court, through the Pro Bono Resource Center, the Maryland Bar Association, along
with the State, through DLLR and DHCD, have worked with Civil Justice and other
partners to train attorneys to assist Maryland homeowners. More than 700 attorneys
have volunteered to be part of the Foreclosure Prevention Pro Bono Project, and
are helping homeowners at workshops, by taking cases and by advising nonprofit housing
counseling agencies.
Homeowners Counseled and
Referred to Legal, FY09
|
-
Created the MD HOPE Hot Line 1-877-462-7555
The MD HOPE Hotline provides information on the location of housing counseling agencies
in communities where individual homeowners need help. The Hotline also guides callers
to pro bono attorneys and fraud investigators if these are needed. The singular
message of the HOPE Hotline is, "If the mortgage is late, don’t wait!" The MD HOPE
Hotline was created to provide fast information on housing counseling for homeowners
facing foreclosure in Maryland.
MD HOPE Hotline Data
|
Fiscal Year |
Total Calls |
|
TOTAL Calls to Date |
25,683 |
|
Calls in FY 2008
|
8,525 |
|
Calls in FY 2009
|
17,158 |
HOPE Hotline Data
, FY08 & FY09
|
HOPE Hotline Calls,
by County FY08 & FY09
|
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Created the MD HOPE Website
Created www.mdhope.org as a one-stop resource
for Maryland residents facing foreclosure. Since inception, the Website has attracted
181,000 visitors.
-
Created the Maryland Servicer Initiative to Streamline Loan Service Response to
Homeowners
Early in 2008, Governor O’Malley announced plans to meet with servicers to address
the problems homeowners and counselors were having accessing meaningful loss mitigation.
Representatives from major loan servicing companies, as well as Fannie Mae and Freddie
Mac, met with the Governor and Administration officials in February and March. Following
intense negotiations and discussions, six servicers (AmeriNational Community Service,
Citi, GMAC ResCap, HSBC, Litton and Ocwen) agreed to abide by a 5-point framework
for a streamlined and transparent loss mitigation process. This agreement ensures
that assistance is made available to homeowner sooner and provides clear information
on mortgage loan servicing.
Maryland’s 5/10/60 Loss Mitigation Timeline
- 5 days to acknowledge receipt of packet
- 10 days to confirm it is complete
- 60 days to make a decision and while a decision is made halt foreclosure action
and penalties
- Dedicated resolution contacts
-
Reached At-Risk Households through Events, Marketing, and Communications
DHCD has taken its message, “Mortgage Late? Don’tWait!” to thousands of Marylanders
in danger of foreclosure. Whether through direct mail, radio and print advertising
or bus shelters and billboards, homeowners from Prince George’s County, Baltimore
City, Montgomery County and every other county in Maryland are receiving the word
– "If your mortgage is late, don’t wait. Call 1-877-462-7555 today."
DHCD MD HOPE Outreach, Communications, and Marketing Activity, FY 08 & FY 09
|
Media |
FY08 |
FY09 |
TOTALS (Apr 2008 - Jun 2009) |
|
Press Releases |
5 |
52 |
57 |
|
Print |
6 |
62 |
68 |
|
Radio |
3 |
9 |
12 |
|
TV |
1 |
11 |
12 |
|
Advertising |
FY08 |
FY09 |
TOTALS (Apr 2008 - Jun 2009) |
|
Print |
381 |
20 |
401 |
|
Radio |
1,763 |
5,855 |
7,618 |
|
TV |
0 |
173 |
1,173 |
|
Direct Mail |
680,000 |
0 |
680,000 |
|
Billboard |
165 |
110 |
275 |
|
Bus Ads |
4,185 |
2,780 |
6,965 |
|
Non-traditional Advertising* |
0 |
191,756 |
191,756 |
|
Outreach Events |
FY08 |
FY09 |
TOTALS (Apr 2008 - Jun 2009) |
|
Events |
85 |
154 |
239 |
|
Event Attendees |
11,594 |
26,058 |
37,652 |
|
Collateral Distributed |
10,174 |
47,448 |
57,662 |
|
Brochure Requests |
79 |
122 |
200 |
|
Pieces Mailed |
51,225 |
33,226 |
84,451 |
*Movie Ads
HOPE Targeted
Mailings
|
Map of HOPE
Outreach Events, FY08 & FY09
|
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Protecting Communities by Addressing Vacant and Foreclosed Homes in Maryland
Neighborhood Conservation Initiative (NCI) helps local jurisdictions stabilize communities
hardest hit by the foreclosure and subprime lending crisis. DHCD is administering
$26.7 million of the $46.3 million allocated by the U.S. Department of Housing and
Urban Development to Maryland through the Neighborhood Stabilization Program. The
funds are being used to help address the blight of abandoned houses in their neighborhoods
caused by the foreclosure crisis.
Neighborhood Conservation
Initiative Awards,
March 2009
|
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Worked to Address Fraud and Protect Homeowners
The Office of the Commissioner of Financial Regulation maintains a dedicated team
of examiners and investigators to identify and combat mortgage fraud. The agency
recovered approximately $2.9 million for Maryland consumers in Fiscal Year 2009,
primarily related to its mortgage activities. In addition, the Office of the Commissioner
of Financial Regulation has:
- Uncovered a $35 million foreclosure rescue scam involving the Metropolitan Money
store which has resulted in 10 guilty pleas to date
- Taken aggressive action against “loss mitigation consulting” schemes which illegally
charge consumers up-front fees by promising to obtain a loan modification on their
behalf including 17 cease-and-desist actions in the past four months
- Pursued an illegal payday lending operation that was abusing the state court system
to enforce illegal lending contracts resulting in the dismissal of confessed judgment
and associated garnishment actions against hundreds of Maryland consumers
- Worked to better inform property owners of pending foreclosure actions by mailing
127,000 Notices of Intent through June 2009.