§ 7-328

Maryland § 7-328

• Jurisdiction: Maryland
• Article gsf: State Finance and Procurement
• Title: 7

Text

(a) There is a Mortgage Loan Servicing Practices Settlement Fund.

(b) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of this subtitle.

(2) Except for restitution and funds designated as fines, civil penalties, and money that are otherwise required under Maryland law, a judgment, or a settlement agreement to be paid into the General Fund of the State, there shall be credited to the Fund all revenues consisting of funds received by the State from any source resulting, directly or indirectly, from any judgment against or settlement with bank mortgage servicers or any other person in the mortgage servicing industry relating to litigation, administrative proceedings, or any other claims made or prosecuted by the State to recover damages for violations of State law.

(c) The Treasurer shall:

(1) invest and reinvest the Fund in the same manner as other State funds; and

(2) credit any investment earnings to the Fund.

(d) Expenditures from the Fund shall be made by an appropriation in the annual State budget or may be transferred by budget amendment.

(e) (1) The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are:

(i) expressly provided by statute; or

(ii) required as a condition of the acceptance of funds.

(2) It is the intent of the General Assembly that disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used as provided in this section solely to supplement, and not to supplant, funds otherwise available for the programs under federal or State law.

(f) (1) The Mortgage Loan Servicing Practices Settlement Fund shall be used for housing and foreclosure–relief purposes and for related investigation and enforcement activities, including:

(i) the provision of housing counseling;

(ii) legal assistance related to foreclosure, evictions, and housing activities;

(iii) criminal or civil investigations of fraud related to housing and the securitization of mortgage loans;

(iv) relevant enforcement activities;

(v) foreclosure prevention, remediation, and restitution;

(vi) programs to address community blight;

(vii) programs reasonably targeted to benefit persons harmed by mortgage fraud; and

(viii) any other public purpose reasonably related to housing and foreclosure relief.

(2) The Mortgage Loan Servicing Practices Settlement Fund may be used to provide legal assistance related to any type of legal proceeding.

(3) The provisions of this subsection may not be construed to affect the Governor’s powers with respect to a request for an appropriation in the annual budget bill.

(g) For each program, project, or activity under subsection (f)(1) of this section for which funds are appropriated, the Governor shall:

(1) develop appropriate statements of vision, mission, key goals, objectives, and performance indicators and report these statements in a discrete part of the State budget submission, which shall also provide data for key performance indicators; and

(2) on or before October 1 of each year until 2016, report, subject to § 2–1257 of the State Government Article, to the General Assembly on:

(i) total funds expended, by program and subdivision, in the prior fiscal year from the Fund established under this section; and

(ii) the specific outcomes or public benefits resulting from that expenditure.