Maryland seeks U.S. mortgage servicer scrutiny
WASHINGTON, Jan 14 (Reuters) - Maryland Gov. Martin O'Malley's said on Monday that he wants the state's mortgage servicers to file detailed monthly reports on how they deal with U.S. borrowers headed toward foreclosure.
While mortgage lenders underwrite home loans, the servicers are contracted to collect payments and are responsible if a borrower goes into default.
"There are thousands of Marylanders on the verge of foreclosure and we need information now to learn what actions servicers are taking to prevent foreclosure," the state's secretary for licensing and regulation, Thomas Perez, said in a statement.
Under the governor's initiative Maryland would become the second state, after California, to give mortgage servicers such scrutiny.
"Data collection and reporting is a critical accountability tool," Perez said in a statement.
In other reforms proposed by O'Malley, Maryland would fund a new program offering emergency, no-interest loans to struggling borrowers.
A raft of proposed regulations for mortgage brokers and lenders closely track new federal standards that are being mulled by lawmakers in Washington and that would grant more consumer protections against flawed loans. (Reporting by Patrick Rucker; editing by Leslie Adler)
