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MarylandHB 00382026 Regular SessionHouse

Financial Institutions - Licensing of Affiliated Insurance Producer-Mortgage Loan Originators - Alterations

Sponsored By: Pam Queen (Democratic)

Signed by Governor

Financial InstitutionsCommercial Law - Credit RegulationBonds -see also- County & Baltimore City Bonds; State BondsFinancial Institutions -see also- Banks; Credit Unions; etc.Identification -see also- Biometrics; Fingerprinting; DrLicsInsurance AdministrationInsurance -see also- Health Ins; MAIF; Motor Vehicle InsLicenses -see also- AB Lic; Certifications; DrLic; PermitsMortgages

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

License goes inactive when sponsorship ends

Beginning October 1, 2026, your license application must name your sponsoring bank or lender and be sponsored by its authorized representative. If your sponsorship ends, you must tell the Commissioner within 10 business days and update NMLS. Your license moves to nonactive status until a new approved sponsor is in place and your record is amended. You cannot originate loans while your license is nonactive.

Affiliated insurance agents can originate mortgages

Beginning October 1, 2026, licensed insurance producers with an appointment from an affiliated insurer can originate mortgage loans for one sponsoring bank or lender. The sponsor must be named in your license application and approved by the Maryland Commissioner of Financial Regulation. You may originate only loans made by that sponsor. A mortgage lender sponsor must be in good standing with regulators and in material compliance with state and federal law.

Sponsors must supervise and carry bonds

Beginning October 1, 2026, a sponsoring bank or lender must supervise the affiliated producer’s mortgage work and provide direction and checks. The sponsor is jointly and severally liable for claims from the producer’s origination activities. The sponsor must meet surety bond rules. A producer meets bond rules by holding a qualifying bond or being covered by the sponsor’s blanket bond. The blanket bond must cover all affiliated producers and be $1,000,000, or another amount set by the Commissioner.

Sponsors & Cosponsors

Sponsor

  • Pam Queen

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 179 • No: 0

Senate vote • 4/13/2026

Third Reading Passed

Yes: 43 • No: 0 • Other: 3

House vote • 2/26/2026

Third Reading Passed

Yes: 136 • No: 0

Actions Timeline

  1. Approved by the Governor - Chapter 512

    5/12/2026

  2. Returned Passed

    4/13/2026House

  3. Third Reading Passed (43-0)

    4/13/2026Senate

  4. Second Reading Passed

    4/9/2026Senate

  5. Favorable Adopted

    4/9/2026Senate

  6. Favorable Report by Finance

    4/9/2026Senate

  7. Hearing 3/24 at 1:00 p.m.

    3/18/2026Senate

  8. Referred Finance

    2/27/2026Senate

  9. Third Reading Passed (136-0)

    2/26/2026House

  10. Second Reading Passed with Amendments

    2/25/2026House

  11. Favorable with Amendments {153228/1 Adopted

    2/25/2026House

  12. Favorable with Amendments Report by Economic Matters

    2/24/2026House

  13. Hearing 2/03 at 1:30 p.m.

    2/3/2026House

  14. Hearing canceled

    2/3/2026House

  15. Hearing 2/03 at 1:00 p.m.

    1/19/2026House

  16. First Reading Economic Matters

    1/14/2026House

  17. Pre-filed

    10/28/2025House

Bill Text

  • Enacted

    5/12/2026

    PDF

  • Third Reading

    2/25/2026

    PDF

  • First Reading

    1/14/2026

    PDF

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