MD SB682

Defines "materially delinquent mortgage" as one with no payments made in the preceding 5 years (excluding periods when foreclosure was restricted by executive order)

Requires secured parties to send loan-related correspondence to mortgagors of materially delinquent mortgages during each billing cycle, including principal balance, interest rate, amounts due, and delinquency length

Before October 1, 2027, allows foreclosure on materially delinquent mortgages only if loan correspondence was sent each billing cycle for the preceding 24 months, or if 90 days' notice is provided on a Commissioner of Financial Regulation form

After October 1, 2027, requires secured parties to have sent loan correspondence for 24 consecutive months before initiating foreclosure on materially delinquent mortgages

Permits mortgagors to raise a defense of laches in foreclosure actions on materially delinquent mortgages, with courts able to attribute enforcement delays to the secured party even if ownership changed during the delay period

Takes effect January 1, 2026