Sweeping Bills Passed to Help Homeowners

Washington Post (04/03/08) P. A1; Rucker, Philip
Maryland's general assembly has passed a comprehensive package of bills crafted to assist people who are on the verge of losing their homes to foreclosure and also to toughen oversight of mortgage lenders. Under the various measures, mortgage industry professionals who engage in certain schemes would face criminal prosecution, the foreclosure timetable would be extended from 15 to 150 days and prepayment penalties and transactions that enable a third party to take over a home would be forbidden. Maryland Gov. Martin O'Malley (D) introduced the sweeping package and could sign the bills into law as early as April 3, and they would take effect immediately because they are emergency measures. "All of that time deliberating the issues, I believe, has resulted in what is a very good package that will provide meaningful reform for borrowers but also continue to have an environment in the state that legitimate lenders will want to lend in," Maryland Bankers Association President and Chief Executive Kathleen Murphy says of the bills, which are largely supported by the mortgage lending industry.