Effective April 4, 2008, Governor Martin O'Malley signed into law HB 365 / SB 216 as emergency measures.  Among other things, these emergency measures enact a new law (codified as MD Real Property Code Section 3-104.1) requiring every security instrument securing "residential property" to contain the name and license number of the mortgage originator and mortgage lender in order to record the security instrument.  "Residential Property" is defined under Section 3-104.1(A) as "real property improved by four or fewer single family dwelling units."  In addition, the new law provides that if the originator is exempt under the Mortgage Originators Act, or if the lender is exempt under the Maryland Mortgage Lender Law, an affidavit to the security instrument stating this fact is required. 

According to the Maryland Commissioner of Financial Regulation's New Foreclosure Rules Pursuant to Emergency Legislation - Senate Bill 216/House Bill 365 4-7-08 - Advisories - Consumer Credit, the Commissioner is in the process of preparing regulations implementing the provisions of Section 3-104.1.  Until the Commissioner of Financial Regulation adopts these regulations, the failure to include the above information in the security instrument "may not be a basis for a clerk of the court to fail to record the security instrument." 

DocMagic, Inc.'s Compliance Department will await published regulations from the Commissioner of Financial Regulation before taking any action in response to the enactment of HB 365 and SB 216.  The Compliance Department may also wait to modify the Fannie Mae/Freddie Mac Maryland security instruments until these respective government-sponsored enterprises publish an announcement regarding their compliance with HB 365 / SB 216, as they have done, for example, for changes in Massachusetts law recently.  The Compliance Department will advise DocMagic customers of any changes that will be made to Maryland security instruments by supplementing this article.  Meanwhile, please contact the Compliance Department with any questions concerning the contents of this article.