Maryland Allows Lenders to Create Escrow Accounts for Water and Sewer Facilities Assessments

The Maryland governor signed into law Senate Bill 755 on April 24, 2018.  Once effective, upon request by the borrower, a lending institution that lends money secured by a first mortgage or first deed of trust on any interest in residential real property has the option to create an escrow account for the borrower solely for the payment of water and sewer facilities assessments.  The statute will not require the lending institution to create such an escrow account simply upon the request of the borrower.  This bill becomes effective October 1, 2018.

The entire bill can be found here.