Md. Code Regs. 05.04.09.09

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

Section 05.04.09.09 - Subordinate Loans

In addition to the requirements of Regulations .07 and .08 of this chapter, for program loans secured by a subordinate mortgage or deed of trust, the borrower shall obtain from each superior mortgagee a written agreement, in the form acceptable to the Department and the Office of the Attorney General, as follows:

A. Acknowledging and consenting to the subordinate lien of the Department;

B. Agreeing to provide timely notice to the Department in the event of default by the borrower on the superior mortgage; and

C. Agreeing to suspend acceleration and foreclosure of the superior lien for a reasonable period of time if the Department brings current and maintains timely payment due on the superior mortgage.

Md. Code Regs. 05.04.09.09

Regulations .09 adopted as an emergency provision effective February 23, 1987 (14:6 Md. R. 704); adopted permanently effective July 27, 1987 (14:15 Md. R. 1657)
Regulations .09 adopted effective May 25, 1992 (19:10 Md. R. 929)
Regulation .09 amended effective February 7, 2011 (38:3 Md. R. 151)