Maryland OFR Issues Guidance on Foreclosure Submissions by Third Parties

Maryland's Office of Financial Regulation (OFE) has issued guidance intended to minimize duplicate submissions by third parties through the state's Foreclosure Registration System.

The industry advisory recommends mortgage servicers, secured parties, and foreclosure purchasers ("clients") develop policies and procedures to avoid duplicate submissions when engaging with multiple third parties.

OFR, according to the advisory, has noticed a significant volume of duplicate submissions, often from multiple third parties submitting notices or registrations for the same client. Specifically concerning foreclosed property registrations, if a different party intends to submit the final registration, the initial submitter should transfer it using the system's "transfer function."

Before final submission, third parties should obtain authorization from their clients rather than contacting OFR directly. In the event that a party fails to use the transfer function, OFR cannot provide account access to new third-party users. Notices of foreclosure and foreclosed property registrations are not public records, and OFR is prohibited from sharing the information on these documents with any third parties who did not submit them.

Despite this, OFR frequently receives inquiries from third parties encountering "duplicate submission" notices after unsuccessful attempts to submit final registrations. These inquiries cause delays, as OFR cannot disclose information about initial submissions or prior entities. Therefore, third parties are urged to consult their clients before submission to confirm proper authorization and obtain necessary instructions for timely registration.