Maryland Modifies Financial Consumer Protection Act and Provisions Regarding Mortgage Brokers Finder’s Fee
Maryland Provisions Regarding Mortgage Brokers Finder’s Fee
Maryland has passed House Bill 1511 which modifies a certain provision of its regulations regarding mortgage brokers finder’s fees. Previously, a mortgage broker who obtained more than one mortgage loan on the same property within a 24 month period could charge a finder’s fee only on “so much of the loan as is in excess of the initial loan.” Under HB 1511 “a mortgage broker obtaining a mortgage loan with respect to the same property more than once within a 24-month period may charge a finder’s fee if the fee is not in excess of 8% of the initial loan amount when combined with the finder’s fee charged on the initial loan and on any other finder’s fee collected during that 24 month period.”
These provisions are effective October 1, 2018 and the full text of House Bill 1511 may be found at: https://legiscan.com/MD/text/HB1511/id/1804145/Maryland-2018-HB1511-Chaptered.pdf
Maryland Modifies Provisions of its Financial Consumer Protection Act
Maryland has passed House Bill 1297 which makes wide ranging changes to its Financial Consumer Protection Act. Among the sections amended include Section 12-114.1 which prohibits an unlicensed person from making a covered loan, meaning a loan subject to Section 12-103(A)(3) or (C) of the act; Section 12-303 which applies to a loan of $25,000.00 or less made for personal, family, or householder purposes; and Section 12-314 which prohibits a person from lending $25,000.00 or less if the person directly or indirectly charges an interest rate prohibited by law, or if the transaction violates the Federal Military Lending Act, or if the person is not licensed under or exempt from the Maryland Consumer Loan Law Licensing Provisions. Additionally, amendments to Section 12-402.1 allow a lender, on or after January 1, 2019, to make a loan under the provisions of this subtitle so long as, among other things, the lender makes a written election in the agreement specifying that this subtitle will govern the loan.
The full text of the amendments may be found at: http://mgaleg.maryland.gov/2018RS/bills/hb/hb1297E.pdf
Adam Faria, JD, is a regulatory compliance consultant with CLA. He is a graduate of Northeastern University and earned his juris doctor at Suffolk University Law School. He is admitted to the bar in Massachusetts and New Hampshire.
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