Code of Maryland Regulations
Title 09 - MARYLAND DEPARTMENT OF LABOR
Subtitle 03 - COMMISSIONER OF FINANCIAL REGULATION
Chapter 09.03.12 - Foreclosure Procedures for Residential Property
Section 09.03.12.09 - Office of Administrative Hearings

Universal Citation: MD Code Reg 09.03.12.09

Current through Register Vol. 51, No. 19, September 20, 2024

A. Borrower Information Worksheet and Instructions.

(1) With respect to a scheduled prefile mediation session, the Office of Administrative Hearings shall provide the Borrower(s) Information Worksheet and the instructions regarding the documents and information that must be provided by each party to the other and to the Office of Administrative Hearings in a form substantially similar to that in Appendix OAH-1 of this regulation.

(2) With respect to a scheduled postfile mediation session, the Office of Administrative Hearings shall provide the Borrower(s) Information Worksheet and the instructions regarding the documents and information that must be provided by each party to the other and to the Office of Administrative Hearings in a form substantially similar to that in Appendix OAH-2 of this regulation.

B. Housing Counseling.

(1) The certification of housing counseling shall be in the form, and shall be delivered to the Office of Administrative Hearings at the time, required by COMAR 05.19.02.02B.

(2) At the option of the secured party, a borrower who fails to deliver the housing counseling certification may sign a borrower certification of housing counseling in a form substantially similar to that in Appendix OAH-5 of this regulation.

(3) At the option of the secured party, the secured party may waive the housing counseling certification at the prefile mediation session by signing the waiver of housing counseling in a form substantially similar to that in Appendix OAH-6 of this regulation.

(4) Housing counseling services provided in accordance with Real Property Article, §7-105.1(d)(10), Annotated Code of Maryland, shall comply with the National Industry Standards for Foreclosure Counseling created by the Advisory Council for the National Industry Standards for Homeownership Education and Counseling.

C. Mediation Checklist.

(1) The mediation checklist required by Real Property Article, §7-105.1(d)(10), Annotated Code of Maryland, to be used in a prefile mediation shall be in a form substantially similar to that in Appendix OAH-3 of this regulation and may, as applicable, include Appendix OAH-5 or Appendix OAH-6 of this regulation.

(2) The mediation checklist required by Real Property Article, §7-105.1(l), Annotated Code of Maryland, to be used in a postfile mediation shall be in a form substantially similar to that in Appendix OAH-4 of this regulation.

D. Designee Language. Each mediation agreement resulting from prefile mediation shall include the following statements in 14 point, bold type:

[Name of borrower] is not entitled to postfile mediation unless otherwise agreed in this agreement.

[Name of borrower] may call [Insert name and address of designee] to report a change of financial circumstances that could affect [name of borrower's] ability to carry out the terms of this agreement.

E. Appearance.

(1) At a scheduled foreclosure mediation, the secured party, or a representative of the secured party, shall be present in person or by telephonic means for the entirety of the foreclosure mediation in accordance with COMAR 28.02.01.20B B.

(2) If the secured party, or a representative of the secured party, fails to appear for the entirety of the foreclosure mediation, then the secured party shall be deemed to have failed to appear pursuant to COMAR 28.02.01.23B.

(3) In the case of postfile mediation, if the mediator determines that a party fails to appear at a scheduled foreclosure mediation, then the mediator shall file a notice with the appropriate circuit court stating such a finding.

(4) If the secured party, itself or through a representative of the secured party, is found by the mediator to have failed to appear at a scheduled foreclosure mediation, then the secured party may not schedule a foreclosure sale until:
(a) The secured party, or a representative of the secured party, appears and participates in a foreclosure mediation;

(b) The borrower withdraws the borrowers' request to participate in the foreclosure mediation; or

(c) The foreclosure action has been dismissed and a new foreclosure action is filed in full compliance with State law and this chapter.

F. Mediation Documents and Information.

(1) The Commissioner may allow the submission of information and documents required for the foreclosure mediation under this regulation by an electronic method.

(2) Documents and information provided by one party to another and to the Office of Administrative Hearing as provided for in this regulation, shall be furnished timely and in an accessible and legible format.

G. Postfile Mediation Agreement Terms. If the postfile mediation results in an agreement, including a conditional agreement, the Office of Administrative Hearings shall draft the postfile mediation agreement term sheet during the mediation session, and, at the conclusion of a postfile mediation session, the mediator and each party shall sign the term sheet.

H. Mediation Outcome.

(1) Pursuant to the time frame provided for in Real Property Article, §7-105.1(l)(4), Annotated Code of Maryland, the Office of Administrative Hearings shall file a report with the court that states the outcome of the request for foreclosure mediation that will include:
(a) A statement as to whether the postfile mediation was held and, if not, the reasons why it was not held;

(b) If applicable, a copy of the mediation checklist as provided for in this regulation; and

(c) If applicable, the documented postfile mediation agreement term sheet provided for in §G of this regulation.

(2) The Office of Administrative Hearings shall furnish a copy of the report provided for in Real Property Article, §7-105.1(l)(4), Annotated Code of Maryland, as described in this section, to each party that appears at the mediation.

(3) The contents of the report filed by the Office of Administrative Hearings pursuant to Real Property Article, §7-105.1(l)(4), Annotated Code of Maryland, shall be privileged.

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