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Unannotated Code of Maryland (Last Updated: May 16, 2014) |
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COMMERCIAL LAW |
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TITLE 13. CONSUMER PROTECTION ACT |
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SUBTITLE 3. UNFAIR OR DECEPTIVE TRADE PRACTICES |
§ 13-316. Mortgage servicers
Latest version.
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(a) Definitions. --
(1) In this section the following terms have the meanings indicated.
(2) "Mortgage" includes a mortgage, deed of trust, security agreement, or other lien on 1 to 4 family residential real estate located in this State.
(3) "Servicer" means a person responsible for collection and payment of principal, interest, escrow, and other moneys under an original mortgage.
(b) Notice to mortgagor after acquisition of mortgage servicing. -- Within 7 days of acquiring mortgage servicing, a servicer shall send to the mortgagor a written notice containing the following information regarding the mortgage on the date of transfer:
(1) The name, address, and telephone number of the new servicer and the address where mortgage payments are to be forwarded;
(2) The principal balance and escrow balance;
(3) The telephone number of the contact designated under subsection (c) of this section;
(4) The responsibilities of the contact under subsection (c) of this section; and
(5) A statement that the servicer's violation of this section will result in the servicer being held liable under subsection (e) of this section.
(c) Contact person for complaints and inquiries. --
(1) A servicer shall designate a contact to whom mortgagors may direct complaints and inquiries.
(2) The contact shall respond in writing to each written complaint or inquiry within 15 days if requested.
(d) Payments of tax or insurance premiums. -- A servicer shall make timely payments of the taxes or insurance premiums due under the mortgage so long as the mortgagor has paid an amount sufficient to pay the tax or insurance premium due and, with regard to the taxes, so long as the servicer is in possession of either the tax bill or notice from the taxing authority.
(e) Penalties for noncompliance. --
(1) If a servicer fails to comply with any provision of this section, the servicer is liable for any economic damages caused by the violation.
(2) The penalties provided in this section are in addition to any other applicable remedies.
(f) Toll-free telephone number. -- A servicer shall provide a toll-free telephone number through which any borrower residing in this State may direct telephone inquiries on outstanding loans during regular business hours.