Maryland Modifies Provisions Relating to Foreclosure and Licensing

Maryland Modifies its Foreclosed Property Registry

Maryland has passed House Bill 107, the purpose of which is to substitute the “Commissioner of Financial Regulation” wherever the “Department of Labor, Licensing, and Regulation” appears in the Residential Property Foreclosure Procedures and to renumber certain sections relating to the Foreclosed Property Registry.

The provisions of this act are effective October 1, 2019 and the full text of the act may be found at: https://legiscan.com/MD/text/HB107/id/2005440/Maryland-2019-HB107-Chaptered.pdf

Maryland Modifies the Net Worth Requirements of Certain Licensees

Maryland has enacted House Bill 61 which modifies the net worth requirements for applicants and licensees who engage in mortgage lending, loan servicing, and loan origination activities.

HB 61 requires that an applicant for a new license or the renewal of an existing license must maintain a minimum tangible net worth. An applicant or licensee that acts as a mortgage broker must maintain a minimum tangible net worth in the amount of $25,000. An applicant or licensee that acts as a mortgage servicer for a GSE must maintain a tangible net worth in the largest amount required by the standards of the GSE. An applicant or licensee that acts as a mortgage servicer but does not operate as a servicer for a GSE must maintain a minimum tangible net worth as detailed in the act based upon the unpaid principal balance of the entire servicing portfolio.

The provisions of this act are effective October 1, 2019 and the full text of the act may be found at: https://legiscan.com/MD/text/HB61/id/2005901/Maryland-2019-HB61-Chaptered.pdf

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Adam Faria, JD, is a regulatory compliance consultant with CLA. He is a graduate of Northeastern University and earned his juris doctor at Suffolk University Law School. He is admitted to the bar in Massachusetts and New Hampshire.

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