Maryland Governor Passes Emergency Resolution Requiring Lenders to Inform State about Potential Foreclosures
February 21st, 2008 by 
admin
In reaction to the rising foreclosure rate of foreclosure all over the state, Maryland Governor Mike O’Malley announced a new emergency order Tuesday requiring mortgage lenders to notify the state ahead of the homeowner when a default is going to be issued on a delinquent mortgage. The legislation is intended to give local authorities a chance to offer help and assistance to the homeowner before the process begins, so that they will be better prepared and more equipped to avoid an eventual foreclosure.
In a speech accompanying the announcement, O’Malley blamed the mortgage industry for the recent foreclosure crisis that has swept the nation, citing their lack of responsibility in assisting homeowners in trouble with their mortgage payments. He was careful to point out that while many companies are quick to draw homebuyers into mortgage loans that may be dangerous for them, they fail in the realm of customer service and providing information to homeowners on what to do when they cannot meet their required payments. The governor plans to meet with major mortgage brokerage executives later in the week, and will also move to consider revoking the licenses of some firms that have drawn considerable heat from the public regarding alleged unethical lending standards.
Maryland foreclosures have shot up in recent times, with suburbs of Washington D.C. like Bethesda and Silver Spring being some of the hardest hit areas. Montgomery county and Prince George county have also been especially affected by the trend, as rates in those areas nearly doubled from the end of 2006 to the end of 2007.
Maryland is the second state to issue this kind of emergency rule, as California recently required lenders to provide information on homeowners with Adjustable Rate Mortgages that are about to reset. The wide proliferation of ARMs is blamed for a good portion of the foreclosure surge, as homeowners are unable to keep up with the varying monthly payments required by them.
Moves like these suggest that local governments are starting to take the foreclosure trend very seriously, especially in the wake of many experts predicting that 2008 may be the worst year yet. The housing market slump has had a huge effect on the overall economy, and with economists predicting an imminent recession, states are doing all they can to buck the trend. O’Malley’s administration is in the process of pushing bills through the state legislature which would lengthen the time required by law between a default and a foreclosure and increase the penalties for mortgage fraud.
The wheels of legislation are in motion in several other states as well, and it will be interesting to see whether or not new laws can ultimately affect the health of the foreclosure and housing market.
Related Links:
- Baltimore Foreclosure Homes
- Upper Marlboro Foreclosure Homes
- Maryland Foreclosure Homes
- Foreclosures
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Posted in Maryland | 
February 21st, 2008 at 1:11 pm
[...] Maryland Governor Passes Emergency Resolution Requiring Lenders to Inform State about Potential Fore…In reaction to the rising foreclosure rate of foreclosure all over the state, Maryland Governor Mike O’Malley announced a new emergency order Tuesday requiring mortgage lenders to notify the state ahead of the homeowner when a default is going to be issued on a delinquent mortgage. The legislation is intended to give local authorities a chance to offer help and assistance to the homeowner before the process begins, so that they will be better prepared and more equipped to avoid an eventual foreclosure. [...]
February 23rd, 2008 at 8:02 pm
[...] Maryland Governor Passes Emergency Resolution Requiring Lenders to Inform State about Potential Fore…In reaction to the rising foreclosure rate of foreclosure all over the state, Maryland Governor Mike O’Malley announced a new emergency order Tuesday requiring mortgage lenders to notify the state ahead of the homeowner when a default is going to be issued on a delinquent mortgage. The legislation is intended to give local authorities a chance to offer help and assistance to the homeowner before the process begins, so that they will be better prepared and more equipped to avoid an eventual foreclosure. [...]
February 24th, 2008 at 9:01 pm
[...] Maryland Governor Passes Emergency Resolution Requiring Lenders to Inform State about Potential Fore…In reaction to the rising foreclosure rate of foreclosure all over the state, Maryland Governor Mike O’Malley announced a new emergency order Tuesday requiring mortgage lenders to notify the state ahead of the homeowner when a default is going to be issued on a delinquent mortgage. The legislation is intended to give local authorities a chance to offer help and assistance to the homeowner before the process begins, so that they will be better prepared and more equipped to avoid an eventual foreclosure. [...]
March 22nd, 2008 at 10:53 am
[...] Maryland Governor Passes Emergency Resolution Requiring Lenders to Inform State about Potential Fore…In reaction to the rising foreclosure rate of foreclosure all over the state, Maryland Governor Mike O’Malley announced a new emergency order Tuesday requiring mortgage lenders to notify the state ahead of the homeowner when a default is going to be issued on a delinquent mortgage. The legislation is intended to give local authorities a chance to offer help and assistance to the homeowner before the process begins, so that they will be better prepared and more equipped to avoid an eventual foreclosure. [...]
March 24th, 2008 at 9:49 pm
[...] Maryland Governor Passes Emergency Resolution Requiring Lenders to Inform State about Potential Fore…In reaction to the rising foreclosure rate of foreclosure all over the state, Maryland Governor Mike O’Malley announced a new emergency order Tuesday requiring mortgage lenders to notify the state ahead of the homeowner when a default is going to be issued on a delinquent mortgage. The legislation is intended to give local authorities a chance to offer help and assistance to the homeowner before the process begins, so that they will be better prepared and more equipped to avoid an eventual foreclosure. [...]
March 29th, 2008 at 3:56 pm
[...] Maryland Governor Passes Emergency Resolution Requiring Lenders to Inform State about Potential Fore…In reaction to the rising foreclosure rate of foreclosure all over the state, Maryland Governor Mike O’Malley announced a new emergency order Tuesday requiring mortgage lenders to notify the state ahead of the homeowner when a default is going to be issued on a delinquent mortgage. The legislation is intended to give local authorities a chance to offer help and assistance to the homeowner before the process begins, so that they will be better prepared and more equipped to avoid an eventual foreclosure. [...]
March 30th, 2008 at 6:01 pm
[...] Maryland Governor Passes Emergency Resolution Requiring Lenders to Inform State about Potential Fore…In reaction to the rising foreclosure rate of foreclosure all over the state, Maryland Governor Mike O’Malley announced a new emergency order Tuesday requiring mortgage lenders to notify the state ahead of the homeowner when a default is going to be issued on a delinquent mortgage. The legislation is intended to give local authorities a chance to offer help and assistance to the homeowner before the process begins, so that they will be better prepared and more equipped to avoid an eventual foreclosure. [...]