New Laws - Maryland Emergency Legislation

By
Title Insurance with Advantage Title Company - Nationwide

I recently attended a Maryland Association of Mortgage Brokers Town Hall Meeting to review new laws affecting those of us in the mortgage business.  These three bills are considered Emergency Legislation and will take effect in Maryland very soon.  

SB216 alters the recordation requirements for Mortgages/ Deeds of Trust to include the loan originators license number.  Going forward this will allow the source of loans in foreclosure to be traced back to the individual loan originator. Those loan originators that are are the source of to many "bad loans" will be open to investigation.  

For more information on Senate Bill 216 visit: http://mlis.state.md.us/2008rs/fnotes/bil_0006/sb0216.pdf  

SB217 pertains to mortgage fraud and the new penalties for loan originators and borrowers.  This includes the maximum penalty of a person involved in multiple incidents of mortgage fraud to a $100,000 fine and 20 years imprisonment.  

For more information on Senate Bill 217 visit: http://mlis.state.md.us/2008rs/fnotes/bil_0007/sb0217.pdf  

SB218 alters several provisions protecting homeowners facing foreclosure. The bill prohibits foreclosure consultants from engaging in rescue transactions.  

For more information on Senate Bill 218 visit: http://mlis.state.md.us/2008rs/fnotes/bil_0008/sb0218.pdf

Please contact me if you have any questions.

Christopher Breck

V.P. & Director of Marketing
Advantage Title Company
Toll Free: (800) 609-8707
Phone: (410) 494-0380
Fax: (410) 494-0381
Cell: (443) 695-2090
Web: http://www.advantitle.com
Blog: http://activerain.com/blogs/cbreck
Linkedin: http://www.linkedin.com/in/marylandtitlecompany

 

Comments (3)

Thomas E. Elder
Mortgage Broker Compliance Consultants - Forest Hill, MD
Founder, Mortgage Broker Compliance Consultants

Chris,

Good to know.  Thanks for sharng the info.

May 06, 2008 05:46 AM
Jesse Barron, REALTOR® - Real Estate Made Easy™ in Anne Arundel County, MD
Keats & Co. Real Estate, LLC - Annapolis, MD

SB216 is a great idea!

Thanks for posting!

May 08, 2008 01:22 PM
Rich Dansereau
Positive Real Estate Professionals - Knoxville, TN

I think that all three of these pieces of legislation sound like positive steps to help protect homeowners from unscrupulous salespeople who are masquerading as loan officers. I am all for accountability in the mortgage industry. If some salesperson (they are not mortgage professionals) know the stiff fines and possible jail time they could face for originating fraudulent loans, the perhaps they will think twice before doing so! I like the idea of being able to track loans or groups of loans that "go bad" to particular originators. Normally, I am not one for more regulation but these seem like they would actually benefit the consumers and the industry as a whole. Thanks for all the info!

Jun 10, 2008 05:13 AM