(BALTIMORE, 6/30/10) -- Sarah Bloom Raskin, Commissioner of Financial Regulation for the Department of
Labor, Licensing and Regulation, today announced refunds to Maryland consumers of approximately $246,000
related to a series of completed regulatory examinations of mortgage loan servicers. Litton Loan Servicing and
Saxon Mortgage Services have each refunded approximately $71,000 to a combined total of 160 Maryland consumers,
while Bayview Loan Servicing has refunded approximately $104,000 to 40 Maryland consumers. The refunds followed
compliance examinations conducted by the Office of the Commissioner of Financial Regulation that uncovered previous
violations of Maryland law, primarily related to restrictions on the imposition of prepayment penalties.
"Maryland has provided protections related to prepayment penalties, and we are committed to making sure
Maryland consumers receive those protections. We appreciate the cooperation of these firms in resolving this
matter," Commissioner Raskin said.
"These refunds relate to violations of prepayment restrictions in effect prior to the 2008 Maryland
mortgage and foreclosure regulatory reforms. In 2008, Governor O'Malley signed into law a blanket prohibition
against prepayment penalties in connection with Maryland residential mortgage loans."
Maryland is one of the few states that maintain licensing and examination authority over independent
mortgage servicers. The state does not have authority over those servicers owned by federally chartered banks
and thrifts.
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