Gov. Martin O'Malley, D-Md., has called for an emergency work-session with loan servicers and announced new emergency regulations and other initiatives designed to prevent foreclosure in Maryland.
‘It is time to make the loan servicers part of the solution to protect our families,’ O' Malley says. ‘Maryland has committed significant resources to help Maryland families avoid foreclosure and stay in their homes, and we are prepared to work with loan servicers to develop a framework and a model for large-scale relief for homeowners that will keep people in their homes.’
Maryland has thus adopted regulations requiring reports from mortgage loan servicers detailing their efforts to help homeowners facing default and foreclosure. According to the governor's office, the state is only the second in the nation to require these data.
The regulation requires servicers to provide to the Maryland Department of Labor and Licensing (DLLR) lists of homeowners who have adjustable-rate mortgages that are about to reset to higher interest rates.
In addition, DLLR's Commissioner of Financial Regulation is examining the operational systems, practices and procedures of Ocwen, one of the largest servicers of Maryland loans. The commissioner will review a sample of the company's Maryland loan-servicing files, the governor's office says.
