Maryland governor and newspapers at odds over his proposal to reduce legal ads on foreclosures

Like the rest of the country, Maryland has seen the number of foreclosures continue to rise. In January, the state's Democratic governor, Martin O'Malley, proposed a homeownership preservation package to address the issue, but parts of his initiative have drawn opposition, including one that would cut back on foreclosure public-notice ads. Such legal advertising is especially important to rural weekly newspapers.

There was definite tension when Gov. Malley attended the Maryland-Delaware-District of Columbia Press Association's legislative breakfast, reports Press News, the group's monthly newsletter. O'Malley began his remarks by admitting he was aware of newspaper publishers' opposition to reducing foreclosure ads from three to one. "President Chris Eddings welcomed O'Malley's willingness to listen to the publishers, but said the association would continue to work with the legislature to block the change," Press News reported. (Read more)

O'Malley's package has also drawn opposition from consumer-rights advocates, legislators and lobbyists, reports Laura Smitherman of The Baltimore Sun. During a Senate panel meeting, some legislators said they wanted more immediate action than offered by O'Malley's proposals, while newspaper representatives spoke about the public notices. "Christopher A. Eddings, publisher of The Daily Record, argued that reducing the number of required ads would 'shield the scope of the problem from public view,'" Smitherman writes. "He said an ad in his paper would cost up to $350 but declined to say how much his company stood to lose." (Read more)

It appears publishers will get their way, since "key lawmakers said Thursday the chances are slim for a reduction to one listing," reports Andy Rosen of The Daily Record in Baltimore County. Legislators told Rosen the bill would fail because they thought it doesn't provide enough benefits for homeowners. John J. Murphy, the executive director of the press association, "said while newspapers have a financial interest in the proposed change, more published listings also benefit the wider community," Rosen writes. "More listings give more opportunity for community members to respond to a foreclosure, and may notify family members that a loved one is in trouble, he said, adding that listings help raise interest in a foreclosure sale, thus increasing the price." (Read more)