Maryland Code, FINANCIAL INSTITUTIONS 11-502
Terms Used In Maryland Code, FINANCIAL INSTITUTIONS 11-502
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- including: means includes or including by way of illustration and not by way of limitation. See
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
- state: means :
(1) a state, possession, territory, or commonwealth of the United States; or
(2) the District of Columbia. See
(b) The provisions of this subtitle do not apply to:
(1) Any bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of this State or the United States or any other-state bank having a branch in this State;
(2) Any insurance company authorized to do business in the State;
(3) Any corporate instrumentality of the Government of the United States including:
(i) The Federal Home Loan Mortgage Corporation;
(ii) The Federal National Mortgage Association; and
(iii) The Government National Mortgage Association;
(4) Any person who takes back a deferred purchase money mortgage in connection with the sale of:
(i) A dwelling or residential real estate owned by, and titled in the name of, that person; or
(ii) A new residential dwelling that the person built;
(5) A nonprofit charitable organization registered with the Maryland Secretary of State or a nonprofit religious organization;
(6) An employer making a mortgage loan to an employee;
(7) A person making a mortgage loan to a borrower who is the person’s spouse, child, child’s spouse, parent, sibling, grandparent, grandchild, or grandchild’s spouse;
(8) A real estate broker who:
(i) Is licensed in the State; and
(ii) Makes a mortgage loan providing a repayment schedule of 2 years or less to assist the borrower in the purchase or sale of a dwelling or residential real estate through the broker;
(9) A home improvement contractor licensed under the Maryland Home Improvement Law who assigns a mortgage loan without recourse within 30 days after completion of the contract to a person licensed under this subtitle or to an institution that is exempt from this subtitle under item (1), (2), or (10) of this subsection;
(10) A subsidiary or affiliate of an institution described in subsection (c) of this section, which subsidiary or affiliate:
(i) Is subject to audit or examination by a regulatory body or agency of this State or the state where the subsidiary or affiliate maintains its principal office; and
(ii) Files with the Commissioner, prior to making mortgage loans, information sufficient to identify:
1. The correct corporate name of the subsidiary or affiliate;
2. An address and telephone number of a contact person for the subsidiary or affiliate;
3. A resident agent; and
4. Any additional information considered necessary by the Commissioner for protection of the public;
(11) Any employee benefit plan qualified under Internal Revenue Code § 401 or persons acting as fiduciaries with respect to such a plan, making mortgage loans solely to plan participants from plan assets; or
(12) Employees acting within the scope of their employment with:
(i) A licensed mortgage lender; or
(ii) A person who is exempt from licensure under this subtitle.
(c) The exemption in subsection (b)(10) of this section applies to subsidiaries and affiliates of:
(1) Any bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of this State; or
(2) Any other-state bank, as that term is defined in § 5-1001 of this article, having a branch that accepts deposits in this State.
(d) The exemptions provided in subsection (b) of this section do not apply to any person who has been denied a license to engage in business as a mortgage lender or real estate broker or whose license to engage in such activities has been suspended or revoked within the 3 immediately preceding calendar years.