Real Property – Filing Fee for Residential Mortgage Foreclosure – Increase
Summary
HB796 increases the filing fee that must accompany an order to docket or complaint to foreclose a mortgage or deed of trust on residential property in Maryland. The bill amends Real Property § 7-105.1(e) to raise the fee from $300 to $450, while leaving the rest of the foreclosure filing requirements in place. Those requirements still include documentation of the debt, proof of ownership or assignment, notices to the borrower, servicemember protections, and any applicable prefile mediation materials or loss mitigation affidavits.
The bill is a targeted change to Maryland’s residential foreclosure process and affects lenders, mortgage servicers, substitute trustees, attorneys, and homeowners involved in foreclosure actions. By increasing the mandatory filing fee, it raises the upfront cost of initiating a residential foreclosure case, which may modestly affect foreclosure-related litigation costs and court filings. The effective date is October 1, 2025.
Impact
HB796 amends Maryland Real Property law, specifically § 7-105.1(e), by increasing the required filing fee for residential mortgage foreclosure actions from $300 to $450. The change applies to orders to docket and complaints to foreclose mortgages or deeds of trust on residential property, and it does not alter the substantive foreclosure prerequisites or borrower protections already required under state law.
Sentiment
The bill appears to have received clear legislative support, passing the House 94-40 and the Senate 33-13. The vote margins suggest general approval of the fee increase, though not unanimous support. No committee transcript was provided, so the available record indicates a generally favorable but somewhat divided sentiment.
Contention
The main point of contention is the higher cost imposed on foreclosure filers, which would fall on lenders, servicers, and foreclosure counsel rather than borrowers directly. Supporters likely viewed the increase as a procedural fee adjustment within the foreclosure system, while opponents may have objected to making foreclosure more expensive or to any indirect cost pass-through to consumers. Because no committee discussion transcript is available, the record does not identify specific arguments beyond the recorded floor vote split.