Maryland Administrative Code

.04 Licensing and Application Requirements. A. Scope. (1) If otherwise required to be licensed under Financial Institutions Article, §11-502, Annotated Code of Maryland, a person is not exempt because the person: (a) Is an out-of-State deposit-taking financial institution; (b) Do…

.05 Records. A. Preservation of Records. (1) A licensee shall preserve the records of a mortgage loan in one or more of the following ways: (a) Original books, accounts, and files; (b) An approved electronic equivalent; or (c) An approved microphotographic copy. (2) A licensee’s …

.06 Advertising and Solicitation. A. A person may not publish, or cause to be published, any advertisement, or make or cause to be made any representation, that: (1) Contains any false, misleading, or deceptive statements regarding the making, brokering, or servicing of mortgage …

.07 Financing Agreements. A. For purposes of Commercial Law Article, §§12-125, 12-922, and 12-1022, Annotated Code of Maryland: (1) An application is completed at the time of initial application; (2) Settlement occurs when the loan proceeds are disbursed by the person conducting …

.08 Agreements with the Borrower. A. Written Agreements. (1) Agreements between a borrower and a licensee shall be: (a) In writing; and (b) Provided promptly to the borrower following execution by all parties. (2) Exact copies of original documents may be provided to the borrower…

.09 Loan Processing. A. A mortgage lender: (1) May not cause or permit any loan to be characterized as a commercial loan if there are circumstances known to the licensee which indicate that any portion of the loan proceeds will not be used for commercial purposes; (2) Which canno…

.10 Fees. A. A licensee may not retain a fee, or any portion of a fee, collected from the borrower if the fee is represented as a charge to be paid to a third party for services in connection with the loan. B. Timing of Collection. (1) If a financing agreement is required under C…

.11 Closing. A. Disbursement of Loan Proceeds. (1) A licensee shall disburse all loan proceeds in a timely manner as provided in the loan documents. (2) Disbursement of all loan proceeds to a third-party closing agent is deemed compliance with this section. B. A licensee may not …

.12 Brokers. A. A person acting as a mortgage broker in a loan transaction may not obtain an exclusive dealing or exclusive agency agreement from any borrower. B. Notwithstanding §A of this regulation, a person acting as a mortgage broker may obtain an agreement from a borrower t…

.13 Expedition. A. A licensee shall act expeditiously in processing and underwriting loan applications. B. A licensee may not: (1) Issue any agreement that locks in or sets an interest rate and points on the loan applied for, if the licensee knows that the time period established…

.14 Payoff and Accounting Statements — Releases. A. Within 5 business days after written request by the borrower, a licensee shall provide the borrower or the borrower's designee with a written statement of the dollar figure which will repay a loan in full. B. Upon written reques…

.15 Waivers. A. An act, agreement, or statement of an applicant may not constitute a valid waiver of any benefit or protection provided to an applicant under these regulations or applicable law. B. Nothing in this regulation affects the validity of any waiver specifically permitt…

.16 Bonds, Letters of Credit, and Trust Accounts. A. The required amount of a bond, letter of credit, or trust account established to meet the requirements of Financial Institutions Article, §11-508, Annotated Code of Maryland, shall be subject to recalculation at the time a lice…

.17 Enforcement. A person who violates these regulations is subject to the enforcement provisions of Financial Institutions Article, §11-517, Annotated Code of Maryland.

.18 Continuing Education. A. Purpose and Applicability. (1) The State legislature has determined that it is in the public interest to require licensees to comply with a continuing education requirement as a prerequisite to the renewal of a mortgage lender license. (2) The continu…

.19 Ability to Repay. A. Purpose and Scope. (1) The General Assembly has determined that it is in the public interest to require lenders to comply with special rules with respect to certain mortgage loans. (2) This regulation applies to loans subject to Commercial Law Article, §§…

.20 Duty of Care. A. Good Faith and Fair Dealing. A licensee has a duty of good faith and fair dealing in communications, transactions, and course of dealings with a borrower in connection with the advertisement, solicitation, making, servicing, purchase, or sale of any mortgage …

.21 Nontraditional and Higher-Priced Mortgage Loans. A. In this regulation, the following terms have the meanings indicated: (1) “Interest-only mortgage loan” means a mortgage loan on which, for a specified period of time, the borrower is required to: (a) Pay only the interest du…

.22 Fees. A. Application Investigation Fee. The nonrefundable investigation fee required by Financial Institutions Article, §11-507(b)(1), Annotated Code of Maryland, is $1. B. Initial License Fee. (1) The license fee required by Financial Institutions Article, §11-507(b)(2), Ann…

.23 Supervision of Mortgage Loan Originators. A. A licensee who is the employer of a mortgage loan originator shall at all times reasonably and adequately supervise those activities of the mortgage loan originator that are conducted within the scope of the mortgage loan originato…

.24 Data Protection. A. A licensee that adequately demonstrates compliance with the federal Interagency Guidelines Establishing Information Security Standards, 12 CFR Part 30, Appendix B, as it may be amended from time to time, shall be deemed to be in compliance with §§B—G of th…

.25 Significant Event Reporting. A. A licensee shall comply with the duty to report set forth in COMAR 09.03.10.02. B. A licensee shall notify the Commissioner in writing through NMLS, and, if applicable, amend the licensee’s information and disclosures in NMLS, within 2 business…

.26 Corporate Governance. A. Corporate Governance — Generally. (1) A licensee shall establish, document, and maintain sufficient corporate governance. (2) Each element of a licensee’s corporate governance shall be commensurate with the size, operational complexity, and overall ri…

.27 Enhanced Prudential Standards for Certain Mortgage Servicers. A. Definitions. (1) In this regulation, the following terms have the meanings indicated. (2) Terms Defined. (a) “Agency” means Fannie Mae, Freddie Mac, and Ginnie Mae. (b) “Allowable assets for liquidity means” tho…

.28 Examination of Licensees. A. Definitions. (1) In this regulation, the following terms have the meanings indicated. (2) Terms Defined. (a) “Examination” means the Commissioner’s examination of a licensee pursuant to Financial Institutions Article, §11-515(a), Annotated Code of…

.01 Scope. This chapter governs certain registration requirements and business operations of consumer reporting agencies who collect credit information and furnish consumer reports on residents of this State. The provisions of this chapter are to promote accuracy in consumer repo…

.02 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Breach of the security of a system” has the meaning stated in Commercial Law Article, §14-3504, Annotated Code of Maryland. (2) “Business customer” means a person who supp…

.03 Annual Registration. A. During the time period established by the Commissioner under §B of this regulation, each consumer reporting agency shall: (1) Obtain and maintain a valid unique identifier issued by NMLS when an account is created with NMLS; and (2) Transfer registrati…

.04 Bond. A. The amount of a consumer reporting agency surety bond shall be determined as follows based on the number of consumer reports that the consumer reporting agency assembled, evaluated, or sold during the prior calendar year: (1) Less than or equal to 10 percent of the t…

.05 Operational Procedures. A. A consumer reporting agency shall devise procedures to identify inaccurate information in consumer credit information submitted to it by a person who furnishes information to a consumer reporting agency. B. As a part of the procedures required in §A…

.06 Permissible Purposes of Consumer Reports. A. If the Commissioner finds that a person is in the business of making loans that are usurious or otherwise void or unenforceable under Maryland law or can use information in credit reports in connection with the making of loans that…

.07 Current Listing of Consumer Reporting Agencies. The Commissioner shall make available to the public a current listing of the names, addresses, and telephone numbers of registered consumer reporting agencies through the NMLS Consumer Access portal.

.01 Scope. This chapter governs the conduct of any individual employed as a mortgage loan originator with respect to residential real estate located in this State.

.02 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Applicant” means an individual applying for a license. (2) “Average prime offer rate” has the meaning stated in 12 CFR Part 1026, as may be amended from time to time. (3) …

.03 Education and Testing Requirements. A. Prelicensing Education. To qualify for a license, a mortgage loan originator shall have: (1) Successfully completed at least 20 hours of prelicensing education as required by Financial Institutions Article, §11-606, Annotated Code of Mar…

.04 Duty of Care. A. Good Faith and Fair Dealing. A mortgage loan originator has a duty of good faith and fair dealing in communications and transactions with a borrower, including, but not limited to: (1) The duty to recommend to a borrower or induce a borrower to enter into onl…

.05 Applications. A. The Commissioner shall approve or deny an application for an initial license, a renewal license, or a license amendment within 60 days after the Commissioner receives a completed application, including a surety bond and all required fees. B. If the Commission…

.06 Fees. A. Application Investigation Fee. The nonrefundable investigation fee required by Financial Institutions Article, §11-604(c)(1), Annotated Code of Maryland, is $1. B. Initial License Fee. (1) The license fee required by Financial Institutions Article, §11-606(b)(2), Ann…

.07 Locations. A. A mortgage loan originator may not conduct mortgage lending business at any location different from a licensed location that is listed for the mortgage loan originator or the mortgage loan originator's employer on NMLS. B. Notwithstanding §A of this regulation, …

.08 Loan Origination Under Expired License. A. A person may not take or receive a mortgage loan application or offer or negotiate the terms of a mortgage loan without a license. B. Notwithstanding §A of this regulation, a mortgage loan originator operating under an expired licens…

.09 Advertising and Solicitation. A. A mortgage loan originator may not publish, or cause to be published, any advertisement, or make or cause to be made any representation, that: (1) Contains any false, misleading, or deceptive statements regarding the making, brokering, or serv…

.01 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) Balloon Payment. (a) “Balloon payment” means any scheduled payment on a mortgage loan that is more than two times the average of all other payments scheduled to repay the m…

.02 Reporting Fraud, Other Violations of Law, and Convictions. A. Duty to Report. (1) Except as provided in §E of this regulation, a regulated person shall submit a report to the Commissioner within 30 business days after the person discovers that an act, or has reason to believe…

.03 Disclosures for Certain Mortgage Loans. A. Mortgage Loan Provisions Requiring Disclosure. A regulated person that offers to make or procure a mortgage loan secured by residential real estate shall provide to the borrower the disclosures set forth in §B of this regulation if t…

.04 Consumer Loans. The term loan account in Financial Institutions Article, §11-219, Annotated Code of Maryland: A. Means any loan or advance of money or credit subject to Commercial Law Article, Title 12, Subtitle 3, Annotated Code of Maryland, the Maryland Consumer Loan Law — …

.05 Mobile Home Retail Sales Financing Information Disclosure Statement. The written statement required in Commercial Law Article, §14–4202(b)(3), Annotated Code of Maryland, shall be in a form substantially similar to the following: Form on following page.

.01 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Mortgage lender licensee” means a person licensed under Financial Institutions Article, §§11-501—11-524, Annotated Code of Maryland. (2) “Mortgage loan” means any loan or …

.02 Information in Recorded Security Instrument. A. Licensee Information or Affidavit in Lieu of Licensee Information. (1) If a mortgage lender licensee is named in the promissory note or agreement evidencing a mortgage loan on a residential property that is secured by a security…

.01 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Addressed envelope” means: (a) An envelope that is preprinted with the address where it should be delivered; (b) An envelope that contains a label with a preprinted addres…

.02 Notice of Intent to Foreclose. A. Subject to §§F, G, and H of this regulation, a person required to send a notice of intent to foreclose under Real Property Article, §7-105.1, Annotated Code of Maryland, shall send a notice of intent to foreclose, which shall fully conform wi…