If, after payment of a claim by the Department, the lender recovers from a borrower any amount for which payment of the claim was made, the following apply:

1. A. If the recovered amount, when added to the claim previously paid by the Department in connection with an enrolled loan, exceeds the lender's loss on that enrolled loan, the lender shall promptly pay to the Department for deposit in the reserve account the amount of the excess; and
2. B. For the purposes of §A of this regulation and Regulation .22 of this chapter, the lender's loss on an enrolled loan is the amount of principal charged off by the lender plus accrued interest plus 1/2 of the reasonable and documented out-of-pocket expenses incurred by the lender in pursuing collection efforts.

Authority: Housing and Community Development Article, §§2-102 and 4-504, and Title 6, Subtitle 3, Annotated Code of Maryland

Effective date: December 25, 2000 (27:25 Md. R. 2279)

Regulation .03B amended effective June 19, 2006 (33:12 Md. R. 996)

Regulation .11C amended effective June 19, 2006 (33:12 Md. R. 996)

Regulation .12B amended effective June 19, 2006 (33:12 Md. R. 996)

Regulation .17A amended effective June 19, 2006 (33:12 Md. R. 996)

Regulation .25 amended effective March 16, 2015 (42:5 Md. R. 485)