§ 13-316
387 words·~2 min read·
/md/commercial-law/13-316A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§13–316.
(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 money under an original mortgage.
(b)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.
(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.
(1)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.
(2)A servicer shall make timely payment of the water and sewer facilities assessments due under a lien on the residential real property for public water and wastewater facilities provided that:
(i)The mortgagor has paid an amount sufficient to pay the assessment due; and
(ii)The servicer is in possession of the assessment bill.
(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)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.