In this chapter, the following terms have the meanings indicated. Terms Defined. “Borrower” has the meaning stated in Financial Institutions Article, §11–501, Annotated Code of Maryland. “Department” means the Department of Housing and Community Development, a principal department of the State. “Homebuyer education or housing counseling” means instruction on preparing for home ownership, shopping for a home, obtaining a mortgage, loan closing, and life as a homeowner. “Initial application” means when: An applicant requests that a mortgage loan be made or obtained on the applicant's behalf; and The person to whom the request was made agrees to begin processing the loan application. “Lender” has the meaning stated in Commercial Law Article, §12–1301, Annotated Code of Maryland. “Mortgage loan” has the meaning stated in Financial Institutions Article, §11–501, Annotated Code of Maryland. “Owner-occupied residential real property” means real property that is a one- to four-family home occupied or to be occupied by the borrower as the borrower's primary residence. “Secondary mortgage loan” has the meaning stated in Commercial Law Article, §12-1301, Annotated Code of Maryland. This chapter applies to any lender that makes a mortgage loan secured by owner–occupied residential real property located in the State. This chapter does not apply to: Any mortgage loan in which the initial application was completed prior to January 1, 2011; A secondary mortgage loan; An open–end or revolving home equity line of credit; A construction loan; An individual who takes back a deferred purchase money mortgage in connection with the sale of residential real property owned by, and titled in the name of, the individual; or An individual who makes a mortgage loan to a borrower who is the individual’s spouse, child, child’s spouse, parent, sibling, grandparent, grandchild, or grandchild’s spouse. Form. Unless the lender is otherwise required by federal or State law to refer a borrower to housing counseling, a lender shall provide a notice of homebuyer education or housing counseling in substantially the following form to a borrower to comply with the requirements set forth in Commercial Law Article, §12-1303, Annotated Code of Maryland: The notice required under Regulation .03 of this chapter shall be provided to a borrower within 10 business days after initial application. A lender may require borrower to complete a written application before agreeing to begin processing the loan, if that requirement is explained to the applicant. A lender may not close on a mortgage loan unless the lender has provided the notice required under §A of this regulation. The Department shall: Maintain information about nonprofit homebuyer education and housing counseling programs and services provided by nonprofit and government organizations certified by the U.S. Department of Housing and Urban Development that are available to residents of the State; Assemble the information into a form that can be used as the required attachment under Regulation .03A(2) of this chapter; and Provide the form to lenders and the general public at: The Department’s website addresses: http://www.mdhousing.org/Website/Housing/Counseling/Default.aspx; and http://www.mdhousing.org/Website/Housing/Default.aspx; The Department of Housing and Community Development, 100 Community Place, Crownsville, Maryland 20736; and The Maryland Department of Labor’s website address, http://www.dllr.state.md.us/finance/. Commercial Law Article, §12-1303, Annotated Code of Maryland Effective date: January 1, 2011 (37:20 Md. R. 1392) In this chapter, the following terms have the meanings indicated. Terms Defined. “Department” means the Department of Housing and Community Development, a principal department of the State. “Housing counseling services” means assistance provided to mortgagors or grantors by nonprofit and governmental entities that are identified on a list maintained by the Department of Housing and Community Development under COMAR 05.19.01.05. “Prefile mediation” means foreclosure mediation that occurs in accordance with Real Property Article, §7-105.1(d), Annotated Code of Maryland, before the date on which the order to docket or complaint to foreclose is filed. The purpose of this chapter is to prescribe the timing and form of certification of a mortgagor or grantor’s participation in housing counseling services as a precondition to prefile mediation in accordance with Real Property Article, §7-105.1(d), Annotated Code of Maryland . The Department shall: Maintain information on housing counseling programs and services provided by nonprofit and government organizations certified by the U.S. Department of Housing and Urban Development that are available to residents of the State; and Provide the information on housing counseling services and a sample of the form under Regulation .04 of this chapter to the general public at: The Department’s website address, http://www.mdhousing.org/Website/Housing/Default.aspx; Department of Housing and Community Development, 100 Community Place Crownsville, Maryland 20736; and The Maryland Department of Labor’s website address, http://www.dllr.state.md.us/finance/. A mortgagor or grantor that has elected to participate in prefile mediation offered by a secured party must: Regardless if they have previously completed housing counseling services, either: Obtain housing counseling services after their election to be participate in prefile mediation; or Be receiving housing counseling services at the time of their election to participate in prefile mediation; and Complete the housing counseling services prior to the prefile mediation. Upon completion of housing counseling services, the entity that provided the services shall provide the mortgagor or grantor with a certificate of housing counseling services in substantially the following form: Real Property Article, §7-105.1(d)(4)(ii), Annotated Code of Maryland Effective date: Regulations .01—.04 adopted as an emergency provision effective October 1, 2012 (39:21 Md. R. 1375); emergency status extended to September 30, 2013 (40:9 Md. R. 788); adopted permanently effective August 5, 2013 (40:15 Md. R. 1228) These regulations describe the policies and procedures for making: Operating assistance grants under the National Foreclosure Mitigation Counseling Program (NFMC); Operating assistance grants under the Housing Counseling and Foreclosure Mediation Fund (HCFMF); and Other housing counseling grants. The objectives of the Programs are to: Make NFMC operating assistance grants to eligible entities that: Provide housing counseling assistance to owner-occupants of single-family properties, primarily in areas of the State with high rates of defaults and foreclosures; and Provide housing counseling assistance in other areas when there is a demonstrated need for such assistance; Make HCFMF operating assistance grants to eligible entities that provide housing counseling services to existing and prospective owner-occupants of single-family properties across the State; and Make other operating and housing counseling assistance grants to eligible entities as resources become available. In this chapter, the following terms have the meanings indicated. Terms Defined. “Act” means Housing and Community Development Article, Annotated Code of Maryland. “Department” means the Department of Housing and Community Development, a principal department of the State. “Eligible entities” means professional nonprofit housing counseling agencies, legal service providers, United States Department of Housing and Urban Development (HUD) certified housing counseling agencies and other eligible entities appearing on the list of nonprofit and government agencies that provide housing counseling, which list is maintained by the Department pursuant to Commercial Law Article, §12-1303(b), Annotated Code of Maryland. “Foreclosure mediation” means a conference at which the parties in a foreclosure action, their attorneys, additional representatives of the parties, or a combination of those persons appear before an impartial individual to discuss the positions of the parties in an attempt to reach agreement on a loss mitigation program for the mortgagor or grantor as set forth in the Real Property Act. “Fund” means the Housing Counseling and Foreclosure Mediation Fund established under Housing and Community Development Article, §4-507, Annotated Code of Maryland. “Housing counseling services” means professional pro bono housing counseling services, including foreclosure prevention assistance, foreclosure mediation assistance, legal counseling, post-mitigation and foreclosure counseling, loss mitigation and analysis assistance, credit repair, financial literacy counseling, homebuyer education, and prepurchase counseling provided to mortgagors or grantors by the Eligible Entities. “Local government” means any municipal corporation subject to the provisions of the State Constitution, Article XI-E, or any one of the 23 counties of the State or Baltimore City. “Loss mitigation analysis” means an evaluation of the facts and circumstances of a loan secured by owner-occupied single-family property to determine, as defined in the Real Property Act: Whether a mortgagor or grantor qualifies for a loan modification; and If there will be no loan modification, whether any other loss mitigation program may be made available to the mortgagor or grantor. “Nonprofit organization” means a corporation, foundation, or other legal entity, no part of the net earnings of which inures to the benefit of any private shareholder or individual holding an interest in the entity. “Operating assistance grants” means NMFC and HCFMF grants, or grants funded with other resources, made to eligible entities pursuant to this chapter. “Programs” means the National Foreclosure Mitigation Program and the Housing Counseling and Foreclosure Mediation Fund Grant Programs, or other housing counseling grant programs implemented by the Department. “Real Property Act” means Real Property Article, §7-105.1, Annotated Code of Maryland. “Secretary” means the Secretary of Housing and Community Development. “Single-family property” means residential property of four or fewer single-family dwelling units in which at least one unit is occupied by an individual who, as defined in the Real Property Act: Has an ownership interest in the property; and Uses the property as the individual's primary residence. “State” means the State of Maryland. Eligible entities shall meet the following requirements to qualify for an operating assistance grant: Have all requisite legal capacity and due authority to enter into the grant; Satisfy all legal requirements to operate in the State; and Meet the performance standards of the Department, as follows: Not have defaulted on a prior grant or loan from the Department; and Not be currently barred or suspended from any of the Department's programs. NFMC grants may be used for costs associated with providing housing counseling services primarily in areas of the State with high rates of defaults and foreclosures, or in other areas, based on demonstrated need, to owner-occupants of single-family properties who are: Delinquent or are at risk of becoming delinquent on their mortgages; and At risk of default and foreclosure. HCFMF grants may be used for costs associated with providing housing counseling services to existing or prospective owner-occupants of single-family properties across the State who are: Delinquent or are at risk of becoming delinquent on their mortgages; At risk of default and foreclosure; or In need of homebuyer education, housing advice, or financial counseling. Eligible costs include: Staff salaries and benefits; A portion of general operating costs of the grantee reasonably associated with the approved activities of the grantee, including travel, administrative overhead, telephone, postage, office supplies, publications, and services; Costs directly associated with undertaking approved activities; and Other costs approved by the Department in its sole discretion. Ineligible Costs. No funds made available under NFMC or HCFMF may be provided directly to lenders, homeowners, or occupants to discharge outstanding mortgage balances or for any other direct debt reduction payments unless it is permitted by the source of the grant funds made available to the Department. Allocations. The amount of funds available in the fiscal year for grants shall be determined as of July 1 of each fiscal year. Initial determinations may be adjusted if appropriated funds available for the Programs are increased or decreased after July 1 in any fiscal year. The Department shall notify eligible entities of allocations, fund availability, and application cycles by advertisement posted on the Department’s website and other statewide housing partners’ websites, direct mailings, press releases, or other methods selected by the Department. Grants. Applications for grants shall be evaluated on the following factors, to the extent applicable: The need for services provided by the applicant in the applicant’s service area; The geographic area and client base demographics served by the applicant; The applicant’s experience and performance in carrying out existing housing counseling and foreclosure prevention activities; The ability of the applicant to use the grant to improve the ability of the applicant to provide Programs services; Whether the applicant’s proposed services have measurable outcomes; The applicant’s staffing and capacity, including bilingual and technology capacity and client management software capacity; The applicant’s other funding resources dedicated to carrying out the approved activities; The level of activities, number of clients served, and anticipated outcomes that the applicant proposes to achieve; and Other factors considered relevant by the Department. The Department shall establish grant terms and conditions in accordance with the terms of the funding source. Grant Applications. Applications for grants shall be on forms approved by the Department. The applications shall include the following information and supporting documentation: Organizational documents of the applicant; A description of the services to be funded with the applicable grant; A description of the geographic area in which the applicant will concentrate its efforts; An operating budget for the services, including the use of funds and the identification and description of leveraged funds and other resources; The term and amount of funds the applicant is seeking; and Other documentation the Department considers necessary to evaluate the grant request. Grant Awards. Applications for grants shall be evaluated based on the criteria set forth in Regulation .06B of this chapter by the Department's Division of Neighborhood Revitalization, which shall make recommendations to the Secretary for awards of grants. The Secretary or the Secretary’s designee may disapprove or approve a grant either on the terms recommended by the Division of Neighborhood Revitalization or on other terms and conditions as the Secretary considers appropriate. Following approval by the Secretary, the Department shall enter into a grant agreement with each successful applicant. Recipients of grants shall maintain accurate financial records, in forms acceptable to the Department, of all transactions which relate to the grants, and make these records available to the Department for review on request for a period of not less than 3 years following the expiration of the grant agreements. Grantees receiving grants shall submit periodic progress reports, in forms required by the Department and on schedules specified in the grant agreements, which clearly show progress of the grantee in relation to the grantee's strategic plan and proposed goals and objectives. Grantees that do not show adequate progress in meeting goals may not be approved for funding in the subsequent years of the grants. All grantees under the Programs shall make their books, accounts, records, administrative offices, and personnel, whether full-time, part-time, consultants, or volunteers, available to the Department during reasonable working hours for the duration of the grant period and for a period of not less than 3 years following the expiration of the grant agreements. Grantees may not discriminate against any person on the basis of race, color, religion, national origin, sex, marital status, physical or mental handicap, or age in any aspect of their projects. Each grantee shall comply with applicable federal, State, and local laws regarding discrimination and equal opportunity in employment, housing, and credit practices including: Titles VI and VII of the Civil Rights Act of 1964; Title VIII of the Civil Rights Act of 1968, as amended; For nonresidential properties, the Americans with Disabilities Act of 1990; and The Department's Minority Business Enterprise Program, as amended. Grantees shall comply with the provisions of the Governor's Executive Order 01.01.1989.18 regarding a drug and alcohol free workplace and any regulations promulgated under it. Covenants implementing these requirements, including affirmative action measures, shall be included in appropriate agreements between the Department and the grantee. Except for waivers under §D of this regulation, any action or decision required or permitted to be taken or made by the Department under these regulations may be taken or made by the Assistant Secretary, Division of Neighborhood Revitalization, or the Assistant Secretary's designee. The Department may terminate a grant or refuse to make additional disbursements under a grant agreement if it finds that the grantee is not complying with any of the requirements of a Program or the grant agreement. The Department may establish from time to time operational handbooks or manuals governing matters relating to the Programs, including descriptive statements of Programs’ procedures which do not directly affect the rights of the public or the procedures available to the public. The Secretary may waive or vary particular provisions of these regulations if: The waiver or variance is not inconsistent with the authorizing provisions of the Act or the Real Property Act; In the written determination of the Secretary, the application of the regulations in a specific case or in an emergency situation would be inequitable or contrary to the purposes of the Act or the Real Property Act; and The Office of the Attorney General approves the waiver for form and legal sufficiency. A person may not knowingly make or cause to be made any false statement or report in any documents required to be furnished to the Department by any agreement relating to the Programs. Commercial Law Article, §12-1303; Housing and Community Development Article, §§2-102, 2-111, and 4-507; Real Property Article, §7-105.1; Annotated Code of Maryland Effective date: October 13, 2014 (41:20 Md. R. 1111) Regulation .01B amended effective December 10, 2015 (42:24 Md. R. 1504) Regulation .02B amended effective December 10, 2015 (42:24 Md. R. 1504) Regulation .03B amended effective December 10, 2015 (42:24 Md. R. 1504) Regulation .05B, D amended effective December 10, 2015 (42:24 Md. R. 1504)