Current through Register Vol. 51, No. 19, September 20, 2024
A. Subject to
§§ F, G, and H of this regulation, a person required to send a notice
of intent to foreclose under Real Property Article, §7105.1, Annotated
Code of Maryland, shall send a notice of intent to foreclose, which shall fully
conform with §B, C, or D of this regulation.
B. Owner-Occupied Residential Property.
(1) Subject to §C of this regulation, a
notice of intent to foreclose on owner-occupied residential property shall be
in a form substantially similar to that in:
(a) Appendix A of this regulation if the loan
is not a federally related mortgage loan;
(b) Appendix A-f of this regulation if the
loan is a federally related mortgage loan; or
(c) With respect to a notice of intent to
foreclose from a secured party offering prefile mediation for a loan that is
not a federally related mortgage loan, Appendix A-1 of this regulation, as
follows:
(i) Appendix A-1 shall be
accompanied in the same envelope or package by the packets of documents and
forms substantially similar to Schedule 1 (Prefile Mediation Packet) and
Schedule 2 (Loss Mitigation Packet) of Appendix A-1 of this
regulation.
(ii) Each of the
documents and forms constituting Appendix A-1, Schedule 1, and Schedule 2 as
required under subparagraph (i) of this paragraph shall be in the sequence of
documents and forms presented in Appendix A-1, Schedule 1, and Schedule 2,
respectively of this regulation. Appendix A-1 shall be the first in the
sequence. Schedule 1 shall be the second in the sequence and shall be directly
behind Appendix A-1. Schedule 2 shall be the third in the sequence and shall be
directly behind Schedule 1. Appendix A-1, Schedule 1, and Schedule 2 shall be
separated from each other by any reasonable method that ensures that the
borrower can identify the forms and documents constituting each of Appendix
A-1, Schedule 1, and Schedule 2.
(iii) The Loss Mitigation Application and
Instruction required in Schedule 2 of Appendix A-1 may be in the form
authorized under Regulation .03 of this chapter.
(d) With respect to a notice of intent to
foreclose from a secured party offering prefile mediation for a loan that is a
federally related mortgage loan, Appendix A-1(f) of this regulation, as
follows:
(i) Appendix A-1(f) shall be
accompanied in the same envelope or package by the packets of documents and
forms substantially similar to Schedule 1 (Prefile Mediation Packet) and
Schedule 2 (Loss Mitigation Packet) of Appendix A-1(f) of this
regulation.
(ii) Each of the
documents and forms constituting Appendix A-1(f), Schedule 1, and Schedule 2 as
required under subparagraph (i) of this paragraph shall be in the sequence of
documents and forms presented in Appendix A-1(f), Schedule 1, and Schedule 2,
respectively. Appendix A-1(f) shall be the first in the sequence. Schedule 1
shall be the second in the sequence and shall be directly behind Appendix
A-1(f), Schedule 2 shall be the third in the sequence and shall be directly
behind Schedule 1. Appendix A-1(f), Schedule 1, and Schedule 2 shall be
separated from each other by any reasonable method that ensures that the
borrower can identify the forms and documents constituting each of Appendix
A-1(f), Schedule 1, and Schedule 2.
(iii) The Loss Mitigation Application and
Instruction required in Schedule 2(f) of Appendix A-1(f) may be in the form
authorized under Regulation .03 of this chapter.
(2) For purposes of the notice set
forth in §B(1) of this regulation, the names and license numbers of
mortgage lender licensees and mortgage loan originator licensees are required
to be included in the notice only if this information is included on or
recorded with the security instrument securing the mortgage loan related to the
notice, or is otherwise known to the person sending the notice. The person
sending the notice set forth in §B(1) of this regulation may satisfy the
requirement to include the license number of the mortgage lender licensee and
mortgage loan originator licensee by including the NMLS unique identifier. If
the mortgage lender was exempt from licensure under Financial Institutions
Article, §11-501 et
seq., Annotated Code of Maryland, at the time the mortgage loan was made, then
a mortgage lender license number is not required under this section. If the
mortgage loan originator was exempt from licensure under Financial Institutions
Article, §11-601 et
seq., Annotated Code of Maryland, at the time the mortgage loan was originated,
then a mortgage lender license number is not required under this section.
(3) The notice of intent to
foreclose shall be accompanied in the same envelope or package by:
(a) A loss mitigation application for loss
mitigation programs that are applicable to the loan secured by the mortgage or
deed of trust that is the subject of the notice. If the secured party does not
have its own loss mitigation application, the secured party shall use the form
of loss mitigation application set forth in Regulation .03 of this
chapter;
(b) Instructions for
completing the loss mitigation application with a telephone number to call to
confirm receipt by the secured party, or representative of the secured party,
of the completed application;
(c) A
description of the eligibility requirements for the loss mitigation programs
offered by the secured party that may be applicable to the loan secured by the
mortgage or deed of trust that is the subject of the notice. If the mortgage
loan is owned, securitized, insured, or guaranteed by the Federal National
Mortgage Association, Federal Home Loan Mortgage Corporation, or Federal
Housing Administration, providing documentation to the borrower as required by
those programs satisfies the requirement to provide a description of the
eligibility requirement for the applicable loss mitigation program;
and
(d) An addressed envelope in
conformity with Regulation .10 of this chapter addressed to the person (an
individual, a group of individuals, or a department such a "loss mitigation
department") responsible for conducting the loss mitigation analysis on behalf
of the secured party for the mortgage loan.
C. If the basis for the authority to
foreclose on the owner-occupied residential property is a homeowners'
association lien, condominium association lien, mechanic's lien, a similar
statutory or contractual lien, or a basis other than a mortgage loan default, a
notice of intent to foreclose shall be in a form substantially similar to that
in Appendix B of this regulation.
D. Not an Owner-Occupied Residential
Property.
(1) A notice of intent to foreclose
on residential property that is not an owner-occupied residential property
shall be in a form substantially similar to that in Appendix C of this chapter
if the loan is not a federally related mortgage loan.
(2) A notice of intent to foreclose on
residential property that is not an owner-occupied residential property shall
be in a form substantially similar to that in Appendix C(f) of this chapter if
the loan is a federally related mortgage loan.
(3) A notice of intent to foreclose under
§D(1) or §D(2) of this regulation shall be sent to the borrower and
record owner only if the secured party, or representative of the secured party,
has a reasonable belief that the residential property is not owner-occupied
residential property.
(4) If the
borrower or record owner contests the determination that the residential
property is not owner-occupied residential property, and it is determined that
the residential property is owner-occupied residential property, the secured
party shall send the appropriate notice of intent to foreclose in compliance
with Real Property Article, §7-105.1, Annotated Code
of Maryland, and this regulation.
E. Any notice of intent to foreclose under
this regulation may include a separate addendum, sequenced at the end of the
notice of intent to foreclose, with any additional information, notice, or
advice required as a prerequisite to commencing foreclosure by the terms of the
deed of trust or mortgage that is the subject of the notice, government
regulatory guidelines applicable to such deed of trust or mortgage or by the
servicer, investor, or insurer of such deed of trust or mortgage, provided the
additional information, notice, or advice does not contradict any information
required to be contained in the notice of intent to foreclose.
F. Filing Electronically. A person required
to send the Commissioner a copy of a notice of intent to foreclose under Real
Property Article, §7-105.1, Annotated Code
of Maryland, shall meet that requirement by making an electronic submission
within 5 business days of mailing a notice of intent to foreclose through the
Maryland Foreclosure Registration System (the "System"). A link to the System
is available on the Commissioner's website at
http://www.labor.maryland.gov/finance.
G. The secured party, or representative of
the secured party, shall include all information required in a form provided
for under §B, C, or D of this regulation in the spaces indicated by
brackets and blank lines.
H. A
notice of intent to foreclose that is sent in compliance with Real Property
Article, §7-105.1, Annotated Code
of Maryland, and is otherwise valid under the law, shall expire and will not be
effective:
(1) If, after 1 year from the date
on which it is sent to the borrower, an action to foreclose the mortgage or
deed of trust pursuant to such notice of intent to foreclose has not been
filed;
(2) If an action to
foreclose the mortgage or deed of trust filed pursuant to such notice of intent
to foreclose is dismissed by the appropriate adjudicative body;
(3) If the borrower cures the default
described in the notice of intent to foreclose and becomes current on payment,
whether pursuant to the terms of the mortgage or deed of trust or a loss
mitigation agreement entered into by the parties;
(4) As provided for in Real Property Article,
§7-105.1(d)(18),
Annotated Code of Maryland; or
(5)
As provided for in §D(4) of this regulation.
I. If a notice of intent to foreclosure
expires and becomes ineffective as provided for in §H(1) of this
regulation, the secured party shall send a new notice of intent to foreclose in
compliance with Real Property Article, §7-105.1, Annotated Code
of Maryland, and this regulation prior to filing an action to foreclose a
mortgage or deed of trust on residential property.
J. The Commissioner shall retain an
electronic copy of all submissions made on the System for at least 6 months.
Click here to view ALL Appendices
referenced in this chapter.
