Md. Code Regs. 05.03.03.12

Current through Register Vol. 51, No. 24, December 2, 2024

Section 05.03.03.12 - Financial Counseling

A. Each borrower shall participate in a financial counseling program acceptable to the Department unless, in the written determination of the Program, a financial counseling program is not available for the borrower or the Program otherwise determines that financial counseling is not necessary.

B. In order to be acceptable to the Department, a financial counseling program shall:

(1) Require financial counseling before the loan is approved and after the loan closes, to the extent determined necessary by the Program;

(2) Provide credit counseling, including counseling about budget planning;

(3) Provide mortgage delinquency counseling, including a plan to address alternatives to a program loan such as:

(a) A repayment plan with the mortgagee or mortgagees,

(b) A forbearance agreement,

(c) A refinancing of the existing mortgage debt,

(d) Assistance from federal and private programs, and

(e) Sale by the owner directly to a third party instead of foreclosure.

Md. Code Regs. 05.03.03.12

Regulations .12 (Emergency Mortgage Assistance Program) adopted effective April 30, 1990 (17:8 Md. R. 975)