All Client Alerts

Keeping ahead of frequent industry changes is essential for mortgage servicers.  Falling behind is not an option.  Failure to comply with changes in regulations, legislation, guidelines and other issues can be costly and time-consuming. 

This is why Safeguard provides its “All Client Alert” email newsletter, designed to keep you informed as changes occur.

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Maryland Lock Change
January 25th, 2001

Please see the following communication we had with Richard Dunn from the Washington HUD office regarding clarification of the Maryland lock change guideline requirements.

Baltimore Vacant Property Ordinance
January 12th, 2001

Here we go again, Baltimore just joined the cities of Chicago, LA, Philadelphia, St. Paul, NYC, and Albany to ensure that we continue to have job security.

Following please find the new Baltimore city ordinance requiring registration of non-owner occupied residential properties.

The information was provided by the Ron Deutsch Cohn, Goldberg & Deutsch, LLC.

Robert


RDeutsch@cohn-goldberg-deutsch.com
To: usfn-industry@egroups.com
Organization: Cohn, Goldberg & Deutsch, LLC.
Date: Thu, 11 Jan 2001 16:19:49 -0500
Subject: [usfn-industry] Baltimore City Code - Ordinance 382
Enforcement

We have learned that State of Maryland is attempting to enforce a section of the Baltimore City Code, which requires registration of non-owner occupied residential properties. This section is found in Ordinance No. 382.

The Ordinance requires that every owner of a non-owner occupied dwelling unit, must file a registration statement (Part A) with the Commissioner of the Department of Housing and Community Development. The registration statement must be filed upon the date of transfer AND on every September 1st annually thereafter. A $15.00 registration fee is required but in no event shall any owner be liable for registration fees in excess of $2,500.00 Failure to file the registration statement is a criminal misdemeanor, punishable by a fine of up to $500 per day that the statement is not filed. After the Part A is filed properties that are added or later sold can be reported on the Part B. Government agencies must register their properties but are exempt from the $15 registration fee.

The purpose of the Ordinance is to facilitate the City in locating the responsible individual in the event that a violation notice must be forwarded. The Part A designates the authorized agent who must be an individual who is at least 18 years old and is customarily present in the City or resides there.

The Registration statement must be returned to the Department of Housing and Community Development, 417 East Fayette Street, Room 202, Baltimore, Maryland 21202.

Any one having questions, can contact me at (410) 296-2550 x3030 or the Director of Finance at (410) 396-4139

Ron Deutsch
Cohn, Goldberg & Deutsch, LLC
600 Baltimore Avenue, Suite 208
Towson, Maryland 21204
(410) 296-2550


From: Robert Klein
To: RDeutsch@cohn-goldberg-deutsch.com
Sent: Thursday, January 11, 2001 8:46 PM
Subject: Baltimore City Code - Ordinance 382 Enforcement [usfn-industry]

Ron, I would like to ask you the 64k question the industry has.

Is the servicer of the loan who does not have possession of the property (pre-sale) or does not take title in its name (post sale) fall under the category of "owner"?

Your opinion would be greatly appreciated.

Robert


From: "Ron Deutsch" rdeutsch@cohn-goldberg-deutsch.com
To: "Robert Klein" robert.klein@safeguardproperties.com
Subject: Re: Baltimore City Code - Ordinance 382 Enforcement [usfn-
industry]
Date: Fri, 12 Jan 2001 09:46:35 -0500
Organization: Cohn, Goldberg & Deutsch, LLC.

Hi Robert!

My opinion, which of course has not been tested by a Judicial opinion yet would be that "pre-sale" clearly would not be subject to this Ordinance. "Post Sale" might, if an aggressive States Attorney argued that after ratification but before a deed has been recorded title has been transferred. But that would be an aggressive argument. Perhaps for $15 it is better to be safe than sorry. The statute states that government agencies must register but are not obligated to pay the $15.

Predatory Lending/Relocation Sample Care
January 4th, 2001

Please see the following e-mail that I received from one of our clients regarding the enforcement by HUD of the recently published Predatory Lending guidelines.

If anyone has dealt with this issue and has any suggestions or ideas, your input would be greatly appreciated.


Robert,

I just want to let you know that I received a letter today from Atlanta Homeownership Center regarding our Loan # xxxxxxx This property was foreclosed in 1998 and we have conveyed property to HUD and have filed all appropriate claims and supplemental claims (including one to HUD for funds due xxxxx). This letter in part states the following: " We have determined that the subject mortgagor was a victim of predatory lending practices and therefore meets the criteria to receive relocation cost."

The letter further instructs us to immediately provide borrower the required payment of $2,000 and forward confirmation to the Atlanta Homeownership office. It further states we can then file a supplemental to recover the money.

However I question that since we are only allowed to file one claim to recover funds due xxxx.

My question to you: Were we aware that HUD is going back on properties for which foreclosure was completed before we ever became aware of these issues and is requiring us to pay the money and then file claims? Of course, if we can't file the claim we would go back to the original servicer who we acquired the loan from. But this seems to be to opening up a whole new Pandora's box that I personally was not aware of.

Do you have any information from any other servicer or your legal people that this is apparently happening? Thanks."

This property is in Chicago.

Thank you

The following e-mail update was received from the client on this issue.

Robert,

Good morning: An update to this. I have talked to Judy M. Burley at the Atlanta Homeownership Center. She advises me that these are people who won the class action lawsuits and can be either currently in foreclosure or have had foreclosures completed. In this case, with the foreclosure completed and the borrower having already moved to another location, she is being reimbursed for relocation expenses.

We will have one more coming from this same region with the same circumstances. I was also advised that we could and probably would be getting the same thing from other areas where predatory lending practices were an issue. We are able to recover our money by filing a supplemental claim.

She indicated a push is on to get these monies out to the individuals before the new administration takes over. The only problem I see now is that it will take us several months to recover these funds through the HUD Supplemental Claim Process.

Thanks, Robert.

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