An NPR report found that more than 700 homeowners in Maryland are facing foreclosure on second mortgages that they believed were resolved or died years ago. Yet these zombie mortgages are rising now to feast on the rising equity in many Maryland homes.

The vast majority of these foreclosures on second-mortgages are concentrated in Baltimore City and Prince George’s County, which means Black and Brown homeowners are disproportionately affected by these foreclosures, just as they were hardest hit by predatory mortgage products.

Yet, Governor Moore’s Office of Financial Regulation has introduced HB1516/SB1026, which will allow these predatory debt buyers to avoid oversight, investigation, regulation, and enforcement. It protects predatory zombie debt buyers instead of hardworking Maryland families.

The legislation may also allow unscrupulous car dealers, high-cost lenders, and others to avoid scrutiny by creating a loophole that bad actors can take advantage of. They can develop new products and structures and avoid licensing, registration, and any oversight by the Office of Financial Regulation. Because this bill is coming from the administration, we need your voice now more than ever to protect Maryland’s homeowners.

Help us protect homeowners, not zombie debt buyers. Please contact your legislators on Economic Matters and Finance and urge them to vote no on this bill!