COMAR 09.03.12.04. Prefile Mediation Process

A. A borrower who elects to accept a secured party's offer to participate in prefile mediation in accordance with Real Property Article §7-105 .1, Annotated Code of Maryland, shall send to the secured party or the identified representative of the secured party the completed and signed application for prefile mediation included in Schedule 1 to Appendix A-1 within 25 days after the date on which the notice of intent to foreclose was mailed by the secured party. The instructions for the prefile mediation application shall include a telephone number to confirm receipt by the secured party or the secured party's representative of the application.

B. Within 5 business days after the date on which the secured party or the identified representative of the secured party receives an application for prefile mediation from a borrower, the secured party or the representative of the secured party shall notify the Office of Administrative Hearings that the borrower has submitted an application for prefile mediation. The notification shall be in a form substantially similar to that in Appendix I of this regulation.

C. The obligation of the Office of Administrative Hearings to schedule a mediation session arises upon the receipt of notice from the secured party required under §B of this regulation .

D. The Office of Administrative Hearings shall conduct the mediation session within 60 days after the receipt of the notice required under §B of this regulation from the secured party unless a postponement, requested in accordance with Appendix OAH-2 of this chapter, is granted.

E. The total fee for prefile mediation is $1. In accordance with instructions from the Department of Housing and Community Development, the secured party shall pay the full amount of the prefile mediation fee to the Housing Counseling and Foreclosure Mediation Fund established under Housing and Community Development Article, §4-507, Annotated Code of Maryland

ix OAH-2 of this chapter, is granted.

E. The total fee for prefile mediation is $1. In accordance with instructions from the Department of Housing and Community Development, the secured party shall pay the full amount of the prefile mediation fee to the Housing Counseling and Foreclosure Mediation Fund established under Housing and Community Development Article, §4-507, Annotated Code of Maryland . The secured party may elect to pay the prefile mediation fee on behalf of the homeowner or collect all or any portion of the fee as part of the resolution of the mortgage loan through prefile mediation or foreclosure, as applicable.

F. Good Faith and Fair Dealing. The secured party, or any representative of the secured party, has a duty of good faith and fair dealing in its participation at a prefile foreclosure mediation, including, but not limited to:

(1) Providing the borrower with an accurate accounting of the debt owed;

(2) Making the borrower aware of all loss mitigation options and services offered by the secured party; and

(3) Pursuing loss mitigation when reasonably possible.

APPENDIX I IS AT THE END OF CHAPTER .