On December 17, 2020, Governor Lawrence Hogan, Jr. issued an executive order (December Order) amending and restating his prior executive order issued October 16, 2020, (October Order) which, among other things, set forth new requirements in connection with the resumption of residential foreclosures in Maryland. The Governor’s original executive order issued in April 2020 had closed the notice of intent to foreclose online registry (NOI Registry), which effectively halted the initiation of new residential foreclosures.
In the October Order, Governor Hogan directed the Maryland Department of Labor’s Commissioner of Financial Regulation (Commissioner) to reopen the NOI Registry on January 4, 2021. The October Order also imposed a new notice requirement, mandating that lenders must provide borrowers with notice of certain forbearance rights before initiating a foreclosure. That is, before a lender could issue a notice of intent to foreclose, the lender must notify the borrower of its forbearance rights under the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (if the borrower’s loan was covered by the CARES Act), or that the borrower could request a similar forbearance as provided under the CARES Act (if the borrower’s loan was not covered by the CARES Act).
On December 18, 2020, the Commissioner published Interpretational Guidance in the form of FAQs to address the December Order and update the Commissioner’s guidance regarding the October Order.
Significant takeaways from the December Order and the Interpretational Guidance include:
We are continuing to monitor the order and any guidance from the Governor’s Office and the Commissioner.
Bryan M. Mull
410-576-4227 • email@example.com
Christopher R. Rahl
410-576-4222 • firstname.lastname@example.org
For additional information on the impact of the coronavirus, visit our information hub for a list of up-to-date content.