Foreclosures

Consumer advocates warn of another potential mortgage crisis in Maryland, call for legislative help

Consumer advocates warn of another potential mortgage crisis in Maryland, call for legislative help

Another Maryland mortgage crisis may be on the horizon as out-of-state hedge funds buy up distressed loans and seek to foreclose on people’s houses, consumer advocates warned Thursday.

The advocates, flanked by homeowners and lawmakers at a rally in Mount Vernon calling for legislative action, said the hedge funds go unregulated and untaxed in Maryland because a state law expanded after the last housing crisis in the mid-2000s didn’t specifically require big investment funds to be licensed as debt collectors.

“It was an issue we thought was settled,” said Del. Charles E. Sydnor III, a Baltimore County Democrat. “Everyone should be playing by the same rules.”

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