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.”