Bill > H1146

This bill establishes a Resolution Trust Fund administered by the Treasurer to address mortgage-related issues, particularly focusing on mortgage loans without identifiable owners. The fund can accept mortgage loans without clear mortgagees, and is required to modify such loans to meet "traditional prime lending characteristics" - which include having a principal of no more than 80% of the home's value, a prime interest rate, fixed payment schedule, standard underwriting criteria, and no prepayment penalties. The fund will receive mortgage payments, establish escrow accounts, pay real estate taxes, and service loans. If a homeowner becomes delinquent, the fund must make efforts to help the homeowner stay in their home, and if foreclosure becomes necessary, it can do so in the Commonwealth's name. At the end of each fiscal year, the fund will allocate proceeds among counties based on the number of "Eaton affidavits" (legal documents related to mortgage issues) filed in those counties. The Treasurer must also hold public hearings in counties that receive significant funds to gather community input on how those funds should be distributed, with a preference for areas with high numbers of Eaton affidavits. The fund can retain up to 15% of mortgage payments for administrative costs, and must provide an annual report detailing the fund's expenditures, regional distribution, and impact on affordable housing and community development.

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https://malegislature.gov/Bills/194/H1146