MD SB831

Requires reverse mortgage lenders to establish escrow accounts for borrowers to cover property taxes, required insurance premiums, ground rents, water and sewer assessments, and homeowners association fees

Lenders must deduct funds from each loan distribution to the borrower and deposit them into the escrow account in amounts proportional to the distribution schedule and sufficient to cover estimated expenses

Lenders are responsible for making on-time payments directly to collection entities for each eligible homeowner expense from the escrow account

Escrow accounts must comply with existing requirements under § 12-1026 of the Commercial Law Article and allow monthly collection and deposit of funds

Takes effect October 1, 2025