Bill requiring mortgage mediation passes in House

March 28, 2010

Maryland lawmakers passed a bill Saturday to require mediation between borrowers facing foreclosure and their mortgage lenders. The bill requires an application for loan modification to be sent to all homeowners 45 days before a foreclosure action is filed. It must include information on programs and counseling help. Homeowners also would not give up any rights to challenge the foreclosure when they seek mediation. Lenders would be required to certify that they have completed a loan modification analysis before putting a property up for sale. The measure, which is a priority of Gov. Martin O'Malley's, also would require those filing a foreclosure action to pay a $300 fee to help pay for mediations. The bill was approved by the House of Delegates on a 119-21 vote and now goes to the Senate.

- Associated Press

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