Credit Regulation - Reverse Mortgage Loans - Escrow Accounts

SB 831 requires lenders for reverse mortgage loans in Maryland to establish escrow accounts to cover specific homeowner expenses. Lenders must deduct a portion of each loan payment from borrowers and deposit it into the escrow account, ensuring timely payments for property taxes, insurance, ground rents, water/sewer assessments, and homeowners association fees. This directly affects reverse mortgage borrowers by guaranteeing these essential expenses are paid on time. The bill amends Maryland’s Commercial Law to implement this escrow requirement, effective October 1, 2025.