Update to Maryland Housing Counseling Notice

Bought HouseThe recent implementation of the Dodd-Frank Act homeownership counseling notice requirements has prompted the Maryland Department of Housing and Community Development to review its requirement for providing a state-specific notice regarding homeownership counseling. Maryland Commercial Law §12-1303 requires lenders to provide an Important Notice Regarding Housing Counseling on all first lien, closed-end loans secured by owner-occupied property in Maryland. Additionally, Maryland Commercial Law 12-409.1(d)(2) requires that a homeownership counseling notice be provided on all Secondary Mortgage Loans that are Maryland Covered Loans. After review, the Department advised that a lender who satisfies the notice requirements of the federal Real Estate Settlement Procedures Act (RESPA) and its implementing regulations (12 CFR §1026.20) is also in compliance with Maryland Commercial Law §12-1303 and its related regulations (COMAR 05.19.01), as long as the RESPA notice includes or is accompanied by a statement in substantially the same form as the following: “When applying for a mortgage loan or line of credit, we recommend you receive homebuyer education or housing counseling.”

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