License requirement inapplicable to the mortgage industry and trusts
The Maryland Court of Appeals issued a long-awaited decision today in the consolidated cases of Blackstone v. Sharma, Shanahan v. Marvastian, O’Sullivan v. Altenburg, and Goldberg v. Neviaser, Case No. 040, September Term 2017 argued November 30, 2017. In a 64-page opinion with two dissents, the Court overruled the decision below, held that the legislative intent and history of the statute did not intend to force registration on foreign statutory trusts and remanded the case to the Circuit Courts to be reinstated and handled there consistent with the holding of the Court of Appeals.The Court analyzed the plain meaning of the statutes and the ordinary and dictionary definitions of “doing business” as well as the legislative history and intent and certain studies and reports from Maryland regulatory agencies to reach its conclusion. The Court found that there was never an intent to apply the licensing requirement to the mortgage industry. The legislation was specifically targeted at about 40 debt collection agencies whose primary business was buying defaulted consumer debt and being compensated on a percentage of the recovery. “The legislative history persuades this Court that the General Assembly did not intend to regulate or license the mortgage industry actors, including foreign statutory trusts serving as a repository for mortgage loans, as collection agencies due to the specific exemptions and the limited scope of MCALA.”
The decision clarified the significance and impact of the Maryland Collection Agency Licensing Act (MCALA) codified generally at Md. BUSINESS REGULATION Code Ann. § 7-101 et seq. (2017). Lower courts held that judgments and foreclosure decrees obtained against consumers in violation of MCALA were void and unenforceable and stated that Maryland foreclosures conducted by unlicensed investors were covered by the statute whether the debt servicers were licensed or not. This had the effect of imposing licensing requirements not only on loan servicers who were generally already licensed, but upon investors and trusts holding Notes and secured obligations, who were generally not individually licensed prior to the decisions.
Next Steps for Mortgage Servicers
Pending cases should now be reviewed to determine whether they should resume or be reinstated in compliance with the statute. As a reminder, the statute still contains a number of exceptions to the licensing requirement which may include non-resident borrowers, debt which was not in default at time of acquisition, property for which relief from stay was obtained in a bankruptcy proceeding, certain deceased borrowers, and vacant or abandoned properties. Such situations should be reviewed by a licensed Maryland attorney familiar with both real property and debt collection requirements before proceeding. S&E offers comprehensive default legal services in Maryland out of the firm's regional operations hub in Balitmore, MD.
November 1, 2019 | Warrington, PA Stern & Eisenberg, an industry leader in the creditors rights' industry, today was recognized by The MReport, an industry publication focusing on mortgage servicing trends and news, as a Top 25 Company to Work For. The MReport is a sister publication to DS News and is published in print and online by the Five Star Institute, a Dallas, TX-based leader in mortgage and servicing related content, events, and publications. In the issue, out digitally November 1 and on desks across the industry next week, highlights 25 companies across the mortgage servicing industry that are leading the pack in employee satisfaction, retention, and recognition as people-first organizations.
"We've worked diligently to improve our internal communications around the innovative things we're doing for the S&E family. With over 250 employees, we put significant focus on meeting their needs from workplace amenities to benefits to creating a positive, collaborative, and open environment that breeds innovation and quality client care," said Chief Value Officer Kathy Brady.
Stern & Eisenberg offers generous benefits, an innovative healthcare hotline where employees can access care without making in-person doctors visits, and offers an in-depth and robust on-boarding and orientation process for new hires. "We're not just focused on people walking in the door. We care deeply about our team members and we actively train new hires, cross train different teams, and retrain our people as roles and needs change," said Steven K. Eisenberg, Esq., founder and chief executive of S&E.
About Stern & Eisenberg
Stern & Eisenberg is a leading, regional, full-service law firm operating in twelve states and the District of Columbia. For over forty years, Stern & Eisenberg has built a collaborative, high-performing team environment which promotes data-driven decision-making, creates innovative opportunities, and allows for performance, operational, and technological seamlessness across its multi-state footprint which includes New York, New Jersey, Pennsylvania, Delaware, West Virginia, Maryland, Virginia, North Carolina, South Carolina, Georgia, Tennessee, Alabama, and the District of Columbia. Learn more online at SternEisenberg.com or contact the Stern & Eisenberg Value Department at SEValue@sterneisenberg.com.
The DC Court is changing its’ Early Mediation procedure effective November 1, 2018. As of that date the Court will no longer be setting the date for Early Mediation at the Initial Scheduling Conference. Instead, it will wait to see if the parties complete the initial stages of the process such as submitting a complete loss mitigation application and conducting a timely analysis before setting a mediation date.
Upon determining that the matter is actually ready for mediation, the Court will then schedule a mediation approximately thirty (30) days out with the Confidential Settlement Statement due 10-14 days in advance.
This Stern & Eisenberg webinar offers an in-depth look at issues surrounding the Pennsylvania Inheritance Tax. Specifically, presenters Steven K. Eisenberg, Esq. and Thomas E. Shea, Esq. cover what happens when a borrower passes away, dive into the issues surrounding inheritance tax and secured claims/mortgages by analyzing what the law dictates, and will offer solutions and possible resolutions. An open Q&A follows the presenters' prepared remarks and conclude the webinar.
Explore the Advantageous Uses and Benefits of LLCs | December 18 | Bethlehem, PA
Limited liability companies can be a favorable route for business owners, but do you have the knowledge you need to stay in compliance with current legislation and make them work for you? Join us for a comprehensive program where you'll gain the information you need to make informed decisions on taking advantage of LLCs and putting them to work for you. Enroll today!
Who Should AttendThis intermediate level seminar will provide attendees the knowledge and skills they need to expand their understanding of limited liability companies. Those who should attend include:
Continuing Legal Education (CLE) credits are offered for this course. For pricing, registration, CLE, and other pertinent details, click the button below.
Win for Mortgage Industry: license requirement inapplicable to the mortgage industry and trusts
The Maryland Court of Appeals issued a long-awaited decision today in the consolidated cases of Blackstone v. Sharma, Shanahan v. Marvastian, O’Sullivan v. Altenburg, and Goldberg v. Neviaser, Case No. 040, September Term 2017 argued November 30, 2017. In a 64-page opinion with two dissents, the Court overruled the decision below, held that the legislative intent and history of the statute did not intend to force registration on foreign statutory trusts and remanded the case to the Circuit Courts to be reinstated and handled there consistent with the holding of the Court of Appeals.
Stern & eisenberg expands into tennessee and alabama, now services 12 states and the district of columbia
[Warrington, PA] Today Stern & Eisenberg announced the firm’s expansion into Tennessee and Alabama. With the expansion, Stern & Eisenberg now operates in twelve states and the District of Columbia. The firm’s other states of service are New York, New Jersey, Pennsylvania, Delaware, West Virginia, Maryland, Virginia, North Carolina, South Carolina, and Georgia. Stern & Eisenberg maintains GSE-compliant, brick-and-mortar operations in each of its twelve states of service and has large, regional processing hubs in Baltimore, MD and Warrington, PA where the firm is headquartered.
This Stern & Eisenberg New York-focused webinar (MAY 23 AT 2:00PM EST) will provide an in-depth discussion of the following issues important to mortgage servicers operating in New York State:
Stern & Eisenberg Presents: CFPB Rule Changes - Successors in Interest & Bankruptcy Periodic Statements
Are you prepared to comply with the most recent amendment to the existing mortgage servicing regulatory framework? The latest CFPB rule changes regarding successors in interest and bankruptcy periodic statements are effective April 19, 2018. Let us guide you on the new road to achieve compliance. S&E hosted a client webinar on Wednesday, March 28, 2018 for a detailed presentation with question and answer session! Here’s what you’ll learn during the S&E webinar:
On Tuesday, February 20th Stern & Eisenberg's Managing Attorney for New Jersey, David Lambropoulos, Esq., hosted an hour-long webinar regarding foreclosure actions in the State of New Jersey. The session touched on current timelines, fundamentals, and stumbling blocks specific to New Jersey. Recent updates and pending legislation which has the potential to significantly impact your process were also discussed. Finally, the panel, which included Chief Compliance Officer Jackie McNally, Esq., presented alternate procedures which have the potential to improve timelines and save clients time and money. Chief Compliance Officer Jackie McNally, Esq. and presenter David Lambropoulos concluded the presentation with an open Q&A with clients attending the live presentation. If you're a mortgage servicer and would like a complimentary recording of the presentation and a PDF copy of the materials used, please contact the S&E Value Department.
S&E Attorneys &
Stern & Eisenberg is a leading regional firm serving twelve states and the District of Columbia. For over forty years, Stern & Eisenberg has built a collaborative, diverse, high-performing team environment which promotes data-driven decision-making, creates innovative opportunities, and allows for performance, operational, and technological seamlessness across its multi-state footprint. Click here to contact the S&E Value Department.