Maryland HB1509 regulates mortgage servicers' handling of insurance proceeds and interest earnings, including fees and disbursement methods.

Maryland HB1509 mandates that mortgage servicers deposit insurance proceeds into a loss draft account in a federally insured banking institution with a simple interest rate of at least 2% per annum. Borrowers can choose to have interest earnings credited to the loss draft account or paid directly to them. The bill prohibits mortgage servicers from charging unreasonable fees, fees that lower interest earnings below 2%, fees for direct deposit disbursement, or fees exceeding actual costs. It also sets out specific methods and procedures for disbursing insurance proceeds and interest earnings.

Maryland HB1509 regulates mortgage servicers' handling of insurance proceeds and interest earnings, including fees and disbursement methods.

Maryland HB1509 mandates that mortgage servicers deposit insurance proceeds into a loss draft account in a federally insured banking institution with a simple interest rate of at least 2% per annum. Borrowers can choose to have interest earnings credited to the loss draft account or paid directly to them. The bill prohibits mortgage servicers from charging unreasonable fees, fees that lower interest earnings below 2%, fees for direct deposit disbursement, or fees exceeding actual costs. It also sets out specific methods and procedures for disbursing insurance proceeds and interest earnings.