<section article="gfi" article_name="Financial Institutions" number="11-101" title_number="11" title_name="Consumer Credit" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Examination” means an examination or investigation performed by the Commissioner, or the Commissioner’s designee, which is required or authorized under this article or Title 12 of the Commercial Law Article.</text> </level> <level label="3"> <text>“Licensee” means a person licensed by the Commissioner under this title.</text> </level> <level label="4"> <text>“Person” includes an individual, corporation, business trust, statutory trust, estate, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.</text> </level> </level> <level label="b"> <text>Travel and living expenses reasonably incurred by the Commissioner or the Commissioner’s designated examiners arising from the examination of a licensee whose place of business being examined is located outside the geographical boundaries of Maryland, shall be paid by the entity being examined.</text> </level> <level label="c"> <level label="1"> <text>Subsection (b) of this section does not apply if the licensee physically produces all documentation deemed by the Commissioner to be necessary or appropriate to the examination within Maryland at a location designated by the Commissioner.</text> </level> <level label="2"> <text>The production of documentation under this subsection, instead of an on-site examination, shall be made at the Commissioner’s sole discretion.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-201" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Control person” means a person who has the power, directly or indirectly, to direct the management or policies of a licensee or license applicant, whether through ownership of securities, by contract, or otherwise.</text> </level> <level label="2"> <text>“Control person” includes a person who:</text> <level label="i"> <text>Is a general partner, an officer, or a director of a licensee or license applicant, or occupies a similar position or performs a similar function;</text> </level> <level label="ii"> <text>Directly or indirectly has the right to vote 10% or more of a class of voting securities, or has the power to sell or direct the sale of 10% or more of a class of voting securities of a licensee or license applicant; or</text> </level> <level label="iii"> <text>In the case of a partnership, a limited partnership, a limited liability partnership, a limited liability company, or any other business entity:</text> <level label="1"> <text>Has the right to receive on liquidation or dissolution of a licensee or license applicant 10% or more of the capital of the licensee or license applicant; or</text> </level> <level label="2"> <text>Has contributed 10% or more of the capital of a licensee or license applicant.</text> </level> </level> </level> </level> <level label="c"> <text>“License” means a license issued in any form by the Commissioner under this subtitle to make loans under the Maryland Consumer Loan Law, including as provided for through NMLS.</text> </level> <level label="d"> <text>“Licensed location” means any location listed by the licensee in NMLS in accordance with this subtitle.</text> </level> <level label="e"> <text>“Licensed name” means:</text> <level label="1"> <text>The licensee’s legal name; and</text> </level> <level label="2"> <text>Any trade name used by the licensee in accordance with § 2–121 of this article.</text> </level> </level> <level label="f"> <text>“Licensee” means a person licensed under this subtitle to make loans under the Maryland Consumer Loan Law.</text> </level> <level label="g"> <text>“Loan” means any loan or advance of money or credit subject to Title 12, Subtitle 3 of the Commercial Law Article, the Maryland Consumer Loan Law – Credit Provisions, regardless of whether the loan or advance of money or credit is or purports to be made under Title 12, Subtitle 3 of the Commercial Law Article.</text> </level> <level label="h"> <text>“Maryland Consumer Loan Law” means this subtitle and Title 12, Subtitle 3 of the Commercial Law Article.</text> </level> <level label="i"> <text>“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.</text> </level> <level label="j"> <text>“Unique identifier” means a number or another identifier assigned by NMLS.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-202" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>The Maryland Consumer Loan Law does not change any powers conferred by law on any person who is not required or permitted to be licensed under this subtitle.</text> </level> <level label="b"> <text>The Commissioner may not license any bank, trust company, savings bank, credit union, or savings and loan association.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-203" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <text>The Commissioner may adopt rules and regulations to carry out the provisions of this subtitle.</text> </section> <section article="gfi" article_name="Financial Institutions" number="11-203.1" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>Unless a person is licensed by the Commissioner, the person may not:</text> <level label="1"> <text>Make a loan; or</text> </level> <level label="2"> <text>In any way use any advantage provided by the Maryland Consumer Loan Law.</text> </level> </level> <level label="b"> <text>Except as otherwise provided in § 11–204 of this subtitle or authorized by the Commissioner by regulation, a licensee may not engage in the business of making loans at a location other than a licensed location.</text> </level> <level label="c"> <text>During the time period established by the Commissioner under subsection (d) of this section, each licensee shall:</text> <level label="1"> <text>Obtain and maintain a valid unique identifier issued by NMLS when an account is created with NMLS;</text> </level> <level label="2"> <text>Transfer licensing information to NMLS; and</text> </level> <level label="3"> <text>Pay to the Commissioner a license extension fee calculated in accordance with subsection (d)(5) of this section.</text> </level> </level> <level label="d"> <level label="1"> <text>The Commissioner shall establish a time period that is not less than 2 months within which a licensee must transfer licensing information to NMLS.</text> </level> <level label="2"> <text>The time period that the Commissioner establishes under this subsection shall begin on or after July 1, 2017.</text> </level> <level label="3"> <text>At least 30 days before the transfer period begins, the Commissioner shall:</text> <level label="i"> <text>Notify all licensees of the transfer period; and</text> </level> <level label="ii"> <text>Provide instructions for the transfer of licensing information to NMLS.</text> </level> </level> <level label="4"> <text>For each licensee that complies with subsection (c) of this section, the term of the licensee’s license shall extend to December 31 of the year in which the license otherwise would have expired.</text> </level> <level label="5"> <text>The license extension fee required under subsection (c)(3) of this section is nonrefundable and, based on the annual license fee, shall be prorated to the number of days between the date the license otherwise would have expired and December 31 of the same year.</text> </level> </level> <level label="e"> <text>Subject to subsection (c) of this section, an applicant for an initial license or a license renewal shall apply for the initial license or license renewal through NMLS:</text> <level label="1"> <text>On or after July 1, 2017; or</text> </level> <level label="2"> <text>If the Commissioner has not joined NMLS with respect to persons required to be licensed under this subtitle as of July 1, 2017, on or after the date that the Commissioner joins, as specified by the Commissioner by public notice.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-203.2" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <level label="1"> <text>The requirements under any federal law and Title 4, Subtitles 1 through 5 of the General Provisions Article regarding the privacy or confidentiality of information or material provided to NMLS, and any privilege arising under federal or state law, including the rules of any federal or state court with respect to that information or material, shall continue to apply to that information or material after the information or material has been disclosed to NMLS.</text> </level> <level label="2"> <text>The information and material may be shared with all state and federal regulatory officials having oversight authority over persons required to be licensed under this subtitle, including the Financial Crimes Enforcement Network and the Office of Foreign Assets Control, and any successor to these agencies, without the loss of privilege or the loss of confidentiality protections provided by federal law or Title 4, Subtitles 1 through 5 of the General Provisions Article.</text> </level> </level> <level label="b"> <text>Information or material that is subject to a privilege or confidentiality under subsection (a) of this section may not be subject to:</text> <level label="1"> <text>Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or agency of the federal government or a state that has received the information or material; or</text> </level> <level label="2"> <text>Subpoena, discovery, or admission into evidence, in any private civil litigation or administrative process, unless, with respect to any privilege held by NMLS, the person to whom the information or material pertains waives, in whole or in part, that privilege.</text> </level> </level> <level label="c"> <text>Any provisions of Title 4, Subtitles 1 through 5 of the General Provisions Article relating to the disclosure of any information or material described in subsection (a) of this section that are inconsistent with subsection (a) of this section shall be superseded by the requirements of this section.</text> </level> <level label="d"> <text>This section does not apply to information or material relating to publicly adjudicated disciplinary and enforcement actions against a person required to be licensed under this subtitle that is included in NMLS and designated for access by the public.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-203.3" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>All revenue received for the licensing and assessment of persons under this subtitle and Subtitle 3 of this title and any other fee or revenue received by the Commissioner under this subtitle shall be:</text> <level label="1"> <text>Credited to the Non–Depository Special Fund established under § 2–120 of this article; and</text> </level> <level label="2"> <text>Used in accordance with § 2–120(d) of this article.</text> </level> </level> <level label="b"> <text>Notwithstanding subsection (a) of this section, the Commissioner shall pay all fines and penalties collected by the Commissioner under this subtitle and Subtitle 3 of this title into the General Fund of the State.</text> </level> <level label="c"> <text>Subject to § 2–120(h) of this article, the Commissioner may impose an annual assessment on any licensee under this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-204" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>A person may not:</text> <level label="1"> <text>Receive any application for a loan or allow any note or contract for a loan to be signed at any place of business that is not a licensed location;</text> </level> <level label="2"> <text>Conduct any business under the Maryland Consumer Loan Law under a name different from the licensed name; or</text> </level> <level label="3"> <text>Evade the application of this section by any device, subterfuge, or pretense of any kind.</text> </level> </level> <level label="b"> <text>This section does not prohibit a licensee from accommodating a borrower, at the borrower’s request, by making a loan by mail because of the borrower’s sickness or hours of employment or for similar reasons.</text> </level> <level label="c"> <text>Notwithstanding subsections (a) and (b) of this section, for a loan that is to be secured by residential real property:</text> <level label="1"> <text>A licensee may solicit and accept an application for a loan:</text> <level label="i"> <text>By mail;</text> </level> <level label="ii"> <text>By telephone or other electronic means; or</text> </level> <level label="iii"> <text>At any location requested by the prospective borrower;</text> </level> </level> <level label="2"> <text>Except as provided in item (3) of this subsection, the loan closing shall be conducted at:</text> <level label="i"> <text>A licensed location;</text> </level> <level label="ii"> <text>The office of an attorney representing the licensee, the borrower, the title company, or title insurer in connection with the loan; or</text> </level> <level label="iii"> <text>The office of the title insurer or title agency performing closing services in connection with the loan; and</text> </level> </level> <level label="3"> <text>A licensee may conduct the loan closing at another location at the written request of the borrower or the borrower’s designee to accommodate the borrower because of the borrower’s sickness.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-205" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <text>To qualify for a license, an applicant shall satisfy the Commissioner that:</text> <level label="1"> <text>The applicant has at least $20,000 in liquid assets available to be used in the business to be covered by the license;</text> </level> <level label="2"> <text>The business will promote the convenience and advantage of the community in which the place of business will be located; and</text> </level> <level label="3"> <text>The applicant or, if the applicant is not an individual, the owners, officers, directors, or members have sufficient experience, character, financial responsibility, and general fitness to:</text> <level label="i"> <text>Command the confidence of the public; and</text> </level> <level label="ii"> <text>Warrant the belief that the business will be operated lawfully, honestly, fairly, and efficiently.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-206" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <level label="1"> <text>To apply for a license, an applicant shall:</text> <level label="i"> <text>Complete, sign, and submit to the Commissioner an application made under oath in the form, and in accordance with the process, that the Commissioner requires; and</text> </level> <level label="ii"> <text>Provide all the information that the Commissioner requests.</text> </level> </level> <level label="2"> <text>The application shall include:</text> <level label="i"> <text>The applicant’s legal name and any trade name used by the applicant in accordance with § 2–121 of this article;</text> </level> <level label="ii"> <text>The applicant’s principal executive office address;</text> </level> <level label="iii"> <text>If the applicant is not an individual, the name and residence address of each control person;</text> </level> <level label="iv"> <text>The address of each additional location, if any, that:</text> <level label="1"> <text>The general public may reasonably view as a location that makes loans, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;</text> </level> <level label="2"> <text>Houses any core operational infrastructure or technology systems;</text> </level> <level label="3"> <text>Conducts any core management, information security and technology, risk and compliance, or finance functions; or</text> </level> <level label="4"> <text>Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle; and</text> </level> </level> <level label="v"> <text>Any other pertinent information that the Commissioner requires for an investigation and findings under § 11–207 of this subtitle.</text> </level> </level> </level> <level label="b"> <text>With the application, the applicant shall pay to the Commissioner:</text> <level label="1"> <text>An investigation fee of $100; and</text> </level> <level label="2"> <text>A license fee of $850.</text> </level> </level> <level label="c"> <level label="1"> <text>With the application, the applicant shall file a surety bond.</text> </level> <level label="2"> <text>The bond shall run to the Commissioner, as obligee, for the benefit of:</text> <level label="i"> <text>The State; and</text> </level> <level label="ii"> <text>Any person who has a cause of action against the applicant under the Maryland Consumer Loan Law.</text> </level> </level> <level label="3"> <text>The bond shall be:</text> <level label="i"> <text>In an amount determined by the Commissioner under subsection (d) of this section;</text> </level> <level label="ii"> <text>Issued by a surety company that:</text> <level label="1"> <text>Is authorized to do business in the State; and</text> </level> <level label="2"> <text>Holds a certificate of authority issued by the Maryland Insurance Commissioner; and</text> </level> </level> <level label="iii"> <text>Conditioned that the licensee shall:</text> <level label="1"> <text>Comply with the Maryland Consumer Loan Law; and</text> </level> <level label="2"> <text>Pay to the State or to any person any money that the licensee may owe to the State or to the person under the Maryland Consumer Loan Law.</text> </level> </level> </level> <level label="4"> <text>The liability of the surety:</text> <level label="i"> <text>Shall be continuous;</text> </level> <level label="ii"> <text>May not be aggregated or cumulative, whether or not the bond is renewed, continued, replaced, or modified;</text> </level> <level label="iii"> <text>May not be determined by adding together the penal sum of the bond, or any part of the penal sum of the bond, in existence at any two or more points in time;</text> </level> <level label="iv"> <text>Shall be considered to be one continuous obligation, regardless of increases or decreases in the penal sum of the bond;</text> </level> <level label="v"> <text>May not be affected by:</text> <level label="1"> <text>The insolvency or bankruptcy of the licensee;</text> </level> <level label="2"> <text>Any misrepresentation, breach of warranty, failure to pay a premium, or any other act or omission of the licensee or an agent of the licensee; or</text> </level> <level label="3"> <text>The suspension of the licensee’s license;</text> </level> </level> <level label="vi"> <text>May not require an administrative enforcement action by the Commissioner as a prerequisite to liability; and</text> </level> <level label="vii"> <text>Shall continue for 3 years after the later of the date on which:</text> <level label="1"> <text>The bond is canceled; or</text> </level> <level label="2"> <text>The licensee, for any reason, ceases to be licensed.</text> </level> </level> </level> <level label="5"> <level label="i"> <text>A bond may be canceled by the surety or the licensee by giving notice of cancellation to the Commissioner.</text> </level> <level label="ii"> <text>Notice under subparagraph (i) of this paragraph shall:</text> <level label="1"> <text>Be in writing; and</text> </level> <level label="2"> <text>Be sent by certified mail, return receipt requested.</text> </level> </level> <level label="iii"> <text>A cancellation of a bond under this paragraph is not effective until 90 days after receipt of a notice of cancellation by the Commissioner.</text> </level> </level> <level label="6"> <text>A claim against the bond may be filed with the surety by:</text> <level label="i"> <text>A claimant; or</text> </level> <level label="ii"> <text>The Commissioner for the benefit of a claimant or the State.</text> </level> </level> <level label="7"> <text>If the amount of claims against a bond exceeds the amount of the bond, the surety:</text> <level label="i"> <text>Shall pay the amount of the bond to the Commissioner for pro rata distribution to claimants; and</text> </level> <level label="ii"> <text>Is relieved of liability under the bond.</text> </level> </level> <level label="8"> <text>If the penal amount of a bond is reduced by payment of a claim or judgment, the licensee shall file a new or additional bond with the Commissioner.</text> </level> <level label="9"> <text>A penalty imposed against a licensee under § 2–115(b) of this article may be collected and paid from the proceeds of a bond required under this subsection.</text> </level> </level> <level label="d"> <level label="1"> <text>The amount of the surety bond under subsection (c) of this section shall be in an amount of not less than $50,000 and not more than $200,000, as determined by the Commissioner for each licensee.</text> </level> <level label="2"> <text>In setting the amount of the surety bond, the Commissioner may consider:</text> <level label="i"> <text>The nature and volume of the business or proposed business of the licensee or applicant;</text> </level> <level label="ii"> <text>The financial condition of the licensee or applicant, including:</text> <level label="1"> <text>The amount, nature, quality, and liquidity of the assets of the licensee or applicant;</text> </level> <level label="2"> <text>The amount and nature of the liabilities, including contingent liabilities, of the licensee or applicant;</text> </level> <level label="3"> <text>The history of and prospects for the licensee or applicant to earn and retain income; and</text> </level> <level label="4"> <text>The potential harm to consumers if the applicant or licensee becomes financially impaired;</text> </level> </level> <level label="iii"> <text>The quality of the operations of the licensee or applicant;</text> </level> <level label="iv"> <text>The quality of the management of the licensee or applicant;</text> </level> <level label="v"> <text>The nature and quality of the person that has control of the licensee or applicant; and</text> </level> <level label="vi"> <text>Any other factor that the Commissioner considers relevant.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-207" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>When an applicant for a license files the application and bond and pays the fees required by § 11–206 of this subtitle, the Commissioner shall investigate the facts relevant to the application to determine if the applicant meets the requirements of this subtitle.</text> </level> <level label="b"> <text>Unless the Commissioner and an applicant agree in writing to extend the time, the Commissioner shall approve or deny each application for a license within 60 days after the date on which the complete application is filed, the fees are paid, and the surety bond is filed.</text> </level> <level label="c"> <text>The Commissioner shall issue a license to any applicant who meets the requirements of this subtitle.</text> </level> <level label="d"> <level label="1"> <text>If an applicant does not meet the requirements of this subtitle, the Commissioner shall:</text> <level label="i"> <text>Deny the application;</text> </level> <level label="ii"> <text>Notify the applicant immediately of this fact;</text> </level> <level label="iii"> <text>Return the bond filed under § 11–206 of this subtitle;</text> </level> <level label="iv"> <text>Refund the license fee; and</text> </level> <level label="v"> <text>Keep the investigation fee.</text> </level> </level> <level label="2"> <level label="i"> <text>Within 10 days after the Commissioner denies an application, the Commissioner shall send a written notice to the applicant stating the reasons for the denial.</text> </level> <level label="ii"> <text>The notice shall be sent by United States mail, e–mail, or any means provided through NMLS to the address listed in the application.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-208" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>Information in NMLS associated with a license approved by the Commissioner under this subtitle shall include the following:</text> <level label="1"> <text>The licensee’s legal name and any trade name used by the licensee in accordance with § 2–121 of this article;</text> </level> <level label="2"> <text>The address of the licensee’s principal executive office; and</text> </level> <level label="3"> <text>The address of each additional location, if any, where the licensee does business and that:</text> <level label="i"> <text>The general public may reasonably view as a location that makes loans, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;</text> </level> <level label="ii"> <text>Houses any core operational infrastructure or technology systems;</text> </level> <level label="iii"> <text>Conducts any core management, information security and technology, risk and compliance, or finance functions; or</text> </level> <level label="iv"> <text>Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle.</text> </level> </level> </level> <level label="b"> <text>A licensee shall maintain and update the information in NMLS associated with the licensee’s license to reflect accurately at all times the information required by subsection (a) of this section.</text> </level> <level label="c"> <text>The unique identifier of the licensee shall constitute the license number for the license.</text> </level> <level label="d"> <text>A license authorizes the licensee to do business under the license at any licensed location and under any licensed name, or as otherwise authorized by the Commissioner through regulation.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-209" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>An initial license term shall:</text> <level label="1"> <text>Begin on the date the license is issued; and</text> </level> <level label="2"> <text>Expire on December 31 of the year:</text> <level label="i"> <text>In which the license is issued, if the license is issued before November 1; or</text> </level> <level label="ii"> <text>Immediately following the year in which the license is issued, if the license is issued on or after November 1.</text> </level> </level> </level> <level label="b"> <text>On or after November 1 of the year in which a license expires, the license may be renewed for an additional 1–year term, if the licensee:</text> <level label="1"> <text>Otherwise is entitled to be licensed;</text> </level> <level label="2"> <text>Pays to the Commissioner a renewal fee of $850; and</text> </level> <level label="3"> <text>Submits to the Commissioner a renewal application in the form, and in accordance with the process, that the Commissioner requires.</text> </level> </level> <level label="c"> <text>The Commissioner may waive the requirements of § 11–205(1) and (2) of this subtitle for the renewal of a license.</text> </level> <level label="d"> <text>To the extent required or permitted by NMLS, the Commissioner may determine that licenses issued under this subtitle shall expire on a staggered basis.</text> </level> <level label="e"> <text>A licensee may not renew a license unless, before the submission of the license renewal application, the licensee has transferred the licensee’s licensing information to NMLS in accordance with § 11–203.1(c) of this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-209.1" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>A licensee may surrender a license through NMLS in accordance with the process that the Commissioner requires.</text> </level> <level label="b"> <text>If a license is surrendered voluntarily, or is suspended or revoked, the Commissioner may not refund any part of the license fee regardless of the time remaining in the license term.</text> </level> <level label="c"> <text>The surrender of a license does not affect any civil or criminal liability of the licensee for acts committed before the license was surrendered.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-210" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>A license is not transferable.</text> </level> <level label="b"> <level label="1"> <text>Each licensee shall conspicuously post, in 48 point or larger type, at each licensed location the following information:</text> <level label="i"> <text>The licensee’s unique identifier; and</text> </level> <level label="ii"> <text>A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.</text> </level> </level> <level label="2"> <text>Each licensee shall conspicuously display the following information on the licensee’s website, any software application accessible to the public and used to make loans under the Maryland Consumer Loan Law, and profile page within each social media platform the licensee uses:</text> <level label="i"> <text>The licensee’s unique identifier; and</text> </level> <level label="ii"> <text>A link to the NMLS Consumer Access website.</text> </level> </level> </level> <level label="c"> <text>A licensee is not required to post the information required in subsection (b)(1) of this section at a licensed location if the licensee does not regularly grant access to that licensed location to members of the general public.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-211" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>A licensee may not add, delete, or modify a location required to be listed in NMLS under § 11–208(a)(2) or (3) of this subtitle unless:</text> <level label="1"> <text>The licensee provides to the Commissioner, through NMLS and in accordance with any regulations the Commissioner adopts, notice of the addition, deletion, or modification;</text> </level> <level label="2"> <text>The addition, deletion, or modification of the location is recorded with the information associated with the licensee’s license in NMLS; and</text> </level> <level label="3"> <text>The addition, deletion, or modification of the location otherwise complies with this subtitle.</text> </level> </level> <level label="b"> <text>The licensee may not do business at a location required to be listed in NMLS by § 11–208(a)(2) or (3) of this subtitle until the location is recorded with the information associated with the licensee’s license in NMLS.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-213" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <text>Each licensee shall keep:</text> <level label="1"> <text>The books and records that the Commissioner considers necessary to determine compliance with the Maryland Consumer Loan Law; and</text> </level> <level label="2"> <text>For at least 2 years after the licensee makes the final entry on any loan in the licensee’s business, the records of that entry, including cards used in a card system.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-214" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>To discover any violations of the Maryland Consumer Loan Law, the Commissioner, at any time and as often as the Commissioner considers appropriate, may investigate the loans made by and the business of:</text> <level label="1"> <text>Any licensee; or</text> </level> <level label="2"> <text>Any other person who makes a loan or on whose behalf a loan is made, whether or not that person:</text> <level label="i"> <text>Acts or claims to act as a principal, agent, or broker; or</text> </level> <level label="ii"> <text>Acts or claims to act under the Maryland Consumer Loan Law.</text> </level> </level> </level> <level label="b"> <text>For the purposes of this section, the Commissioner:</text> <level label="1"> <text>Shall be given access to any books, papers, records, safes, or vaults of the person under investigation; and</text> </level> <level label="2"> <text>May examine under oath any person whose testimony the Commissioner requires.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-215" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>Subject to the hearing provisions of § 11-217 of this subtitle, the Commissioner may order a licensee or any other person to cease and desist from a course of conduct if the course of conduct results in an evasion or violation of the Maryland Consumer Loan Law or of any rule or regulation adopted under it.</text> </level> <level label="b"> <level label="1"> <text>Subject to the provisions of paragraph (2) of this subsection, when the Commissioner determines that a licensee or any other person is about to engage in an act or practice constituting an evasion or violation of the Maryland Consumer Loan Law or of any rule or regulation adopted under the Maryland Consumer Loan Law, and that immediate action against the licensee or person is in the public interest, the Commissioner may in the Commissioner’s discretion issue, without a prior hearing, a summary order directing the licensee or person to cease and desist from engaging in the act or practice.</text> </level> <level label="2"> <text>A summary cease and desist order issued under paragraph (1) of this subsection shall give the licensee or person:</text> <level label="i"> <text>Subject to the hearing provisions of § 11-217 of this subtitle, notice of the opportunity for a hearing to determine whether the summary cease and desist order should be vacated, modified, or entered as final; and</text> </level> <level label="ii"> <text>Notice that the summary cease and desist order will be entered as final if the licensee or person does not request a hearing within 15 days of receipt of the summary cease and desist order.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-216" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>Subject to the hearing provisions of § 11-217 of this subtitle, the Commissioner may suspend or revoke the license of any licensee who:</text> <level label="1"> <text>Violates any provision of the Maryland Consumer Loan Law; or</text> </level> <level label="2"> <text>Knowingly and repeatedly violates any provision of the Maryland Consumer Debt Collection Act.</text> </level> </level> <level label="b"> <level label="1"> <text>The Commissioner shall revoke the license of any licensee who is convicted twice of violating § 12-316 of the Commercial Law Article if the second violation occurs after the first conviction.</text> </level> <level label="2"> <text>The Commissioner may not issue another license to any person whose license is revoked under this subsection.</text> </level> </level> <level label="c"> <text>If the Commissioner suspends or revokes a license, the Commissioner shall file in the Commissioner’s office:</text> <level label="1"> <text>Findings; and</text> </level> <level label="2"> <text>A statement of all the facts on which the findings are based.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-217" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>Before the Commissioner takes any action under § 11-215 or § 11-216(a) of this subtitle, the Commissioner shall give the licensee an opportunity for a hearing before the Commissioner.</text> </level> <level label="b"> <text>Notice of the hearing shall be given and the hearing shall be held in accordance with the Administrative Procedure Act.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-218" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>Any applicant for a license or any licensee who is aggrieved by a decision of the Commissioner to deny an application for or suspend or revoke a license may appeal:</text> <level label="1"> <text>To the circuit court for the county in which the aggrieved person resides or did business; or</text> </level> <level label="2"> <text>To the Circuit Court for Baltimore City.</text> </level> </level> <level label="b"> <text>An appeal shall be heard and decided on the record of the proceedings before the Commissioner. However, if the court finds that additional evidence is necessary, the court may permit that evidence to be introduced.</text> </level> <level label="c"> <text>If a decision of the Commissioner is appealed, the court may reverse, affirm, or modify the decision.</text> </level> <level label="d"> <text>The aggrieved applicant or licensee or the Commissioner may appeal the decision of the court to the Appellate Court of Maryland.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-219" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>A licensee may not sell a loan account to any person who is not licensed under this subtitle.</text> </level> <level label="b"> <text>A loan account that is acquired by a person who is not licensed under this subtitle is not enforceable.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-220" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <text>The Commissioner shall report to the appropriate State’s Attorney any alleged criminal violation of the Maryland Consumer Loan Law.</text> </section> <section article="gfi" article_name="Financial Institutions" number="11-221" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <text>This subtitle shall be interpreted and construed to effectuate its general remedial purpose.</text> </section> <section article="gfi" article_name="Financial Institutions" number="11-222" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <text>Any person who violates any provision of § 11–203.1(a) of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000 or imprisonment not exceeding 3 years or both.</text> </section> <section article="gfi" article_name="Financial Institutions" number="11-223" title_number="11" title_name="Consumer Credit" subtitle_number="2" subtitle_name="Consumer Loans -- Licensing Provisions"> <level label="a"> <text>This subtitle may be cited as the Maryland Consumer Loan Law – Licensing Provisions.</text> </level> <level label="b"> <text>This subtitle and the Maryland Consumer Loan Law – Credit Provisions may be cited jointly as the Maryland Consumer Loan Law.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-301" title_number="11" title_name="Consumer Credit" subtitle_number="3" subtitle_name="Installment Loans -- Licensing Provisions"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Installment loan” means a loan or extension of credit made for consideration under § 12–103(a)(3) or (c) or Title 12, Subtitle 9, or Subtitle 10 of the Commercial Law Article.</text> </level> <level label="c"> <text>“License” means a license issued in any form by the Commissioner under this subtitle to make installment loans, including as provided for through NMLS.</text> </level> <level label="d"> <text>“Licensee” means a person licensed under this subtitle to make installment loans.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-302" title_number="11" title_name="Consumer Credit" subtitle_number="3" subtitle_name="Installment Loans -- Licensing Provisions"> <level label="a"> <text>This subtitle does not apply to any loan or extension of credit:</text> <level label="1"> <text>Between relatives;</text> </level> <level label="2"> <text>Between an employer and an employee;</text> </level> <level label="3"> <text>Between a landlord and a tenant; or</text> </level> <level label="4"> <text>Between a primary or secondary or nonprofit degree–granting postsecondary academic educational institution and a student or parents or guardian of that student, for tuition or other expenses of education at that institution.</text> </level> </level> <level label="b"> <text>The licensing provisions of this subtitle do not apply to any of the following persons, if organized under the laws of this State or otherwise qualified to do business in this State:</text> <level label="1"> <text>A banking institution;</text> </level> <level label="2"> <text>A national banking association;</text> </level> <level label="3"> <text>A federal or State savings and loan association;</text> </level> <level label="4"> <text>A federal or State credit union;</text> </level> <level label="5"> <text>A licensee under Subtitle 2 of this title;</text> </level> <level label="6"> <text>A seller of goods or services or both not engaged in:</text> <level label="i"> <text>Making loans; or</text> </level> <level label="ii"> <text>Acting as a credit services business as defined under Title 14, Subtitle 19 of the Commercial Law Article;</text> </level> </level> <level label="7"> <text>A licensee under Subtitle 5 of this title engaged solely in a mortgage lending business as defined in that subtitle; or</text> </level> <level label="8"> <text>An entity exempt from licensing as a mortgage lender under § 11–502(b)(3), (10), or (13) of this title.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-303" title_number="11" title_name="Consumer Credit" subtitle_number="3" subtitle_name="Installment Loans -- Licensing Provisions"> <text>Unless the person is licensed by the Commissioner, a person may not:</text> <level label="1"> <text>Engage in the business of making installment loans;</text> </level> <level label="2"> <text>Make more than 5 installment loans a year; or</text> </level> <level label="3"> <text>Engage in the business of a credit services business as defined under Title 14, Subtitle 19 of the Commercial Law Article.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-304" title_number="11" title_name="Consumer Credit" subtitle_number="3" subtitle_name="Installment Loans -- Licensing Provisions"> <text>A license under this subtitle shall be applied for and issued in accordance with, and is subject to, the licensing and investigatory provisions of Subtitle 2 of this title, the Maryland Consumer Loan Law – Licensing Provisions.</text> </section> <section article="gfi" article_name="Financial Institutions" number="11-305" title_number="11" title_name="Consumer Credit" subtitle_number="3" subtitle_name="Installment Loans -- Licensing Provisions"> <text>Any person who violates any provision of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000 or imprisonment not exceeding 3 years or both.</text> </section> <section article="gfi" article_name="Financial Institutions" number="11-401" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Agreement” means an installment sale agreement, a renewed or extended installment sale agreement, and any renewal, extension, or refund agreement made in connection with an installment sale agreement.</text> </level> <level label="c"> <level label="1"> <text>“Buyer” means a person who buys or leases goods under an installment sale agreement, even though the person has entered into one or more renewal, extension, or refund agreements.</text> </level> <level label="2"> <text>“Buyer” includes a prospective buyer.</text> </level> </level> <level label="d"> <level label="1"> <text>“Collateral security” means any security interest in, encumbrance on, or pledge of property or goods that is given to secure performance of an obligation of a buyer or a surety for a buyer under an agreement.</text> </level> <level label="2"> <text>“Collateral security” includes the undertaking of a surety for a buyer.</text> </level> <level label="3"> <text>“Collateral security” does not include any goods or interest in goods that are the subject of an installment sale agreement.</text> </level> </level> <level label="e"> <level label="1"> <text>“Control person” means a person who has the power, directly or indirectly, to direct the management or policies of a licensee or license applicant, whether through ownership of securities, by contract, or otherwise.</text> </level> <level label="2"> <text>“Control person” includes a person who:</text> <level label="i"> <text>Is a general partner, an officer, a director, or a member of a licensee or license applicant, or occupies a similar position or performs a similar function;</text> </level> <level label="ii"> <text>Directly or indirectly has the right to vote 20% or more of a class of voting securities, or has the power to sell or direct the sale of 20% or more of a class of voting securities, of a licensee or license applicant; or</text> </level> <level label="iii"> <text>In the case of a partnership, a limited partnership, a limited liability partnership, a limited liability company, or any other business entity:</text> <level label="1"> <text>Has the right to receive on liquidation or dissolution of a licensee or license applicant 20% or more of the capital of the licensee or license applicant; or</text> </level> <level label="2"> <text>Has contributed 20% or more of the capital of a licensee or license applicant.</text> </level> </level> </level> </level> <level label="f"> <level label="1"> <text>“Goods” means all tangible personal property that has a cash price of $25,000 or less.</text> </level> <level label="2"> <text>“Goods” does not include money or things in action.</text> </level> </level> <level label="g"> <level label="1"> <text>“Installment sale agreement” means a contract for the retail sale of consumer goods, negotiated or entered into in this State, under which:</text> <level label="i"> <text>Part or all of the price is payable in one or more payments after the making of the contract; and</text> </level> <level label="ii"> <text>The seller takes collateral security or keeps a security interest in the goods sold.</text> </level> </level> <level label="2"> <text>“Installment sale agreement” includes:</text> <level label="i"> <text>A prospective installment sale agreement;</text> </level> <level label="ii"> <text>A purchase money security agreement; and</text> </level> <level label="iii"> <text>A contract for the bailment or leasing of consumer goods under which the bailee or lessee contracts to pay as compensation a sum that is substantially equal to or is more than the value of the goods.</text> </level> </level> <level label="3"> <text>“Installment sale agreement” does not include:</text> <level label="i"> <text>A bona fide C.O.D. transaction or a layaway agreement as defined in § 14–1101(g) of the Commercial Law Article; or</text> </level> <level label="ii"> <text>A lease for industrial, commercial, or agricultural purposes.</text> </level> </level> </level> <level label="h"> <text>“License” means a license issued in any form by the Commissioner under this subtitle to do business as a sales finance company, including as provided for through NMLS.</text> </level> <level label="i"> <text>“Licensed location” means any location listed by the licensee in NMLS in accordance with this subtitle.</text> </level> <level label="j"> <text>“Licensed name” means:</text> <level label="1"> <text>The licensee’s legal name; and</text> </level> <level label="2"> <text>Any trade name used by the licensee in accordance with § 2–121 of this article.</text> </level> </level> <level label="k"> <text>“Licensee” means a person licensed under this subtitle to do business as a sales finance company.</text> </level> <level label="l"> <text>“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.</text> </level> <level label="m"> <text>“Retail sale” means the sale of goods for use or consumption by the buyer or for the benefit or satisfaction that the buyer may derive from the use or consumption of the goods by another, but not for resale by the buyer.</text> </level> <level label="n"> <text>“Sales finance company” means a person who is engaged, whether by purchase, discount, pledge, loan, or otherwise, in the business of acquiring, investing in, or lending money or credit on the security of any interest in:</text> <level label="1"> <text>An installment sale agreement made between other parties;</text> </level> <level label="2"> <text>A retail credit account transaction, as defined in § 12–501 of the Commercial Law Article, made between other parties; or</text> </level> <level label="3"> <text>A transaction that deals with home improvement, as defined in § 8–101 of the Business Regulation Article, made between other parties, if collateral security is required by and given to the contractor as a condition to the transaction.</text> </level> </level> <level label="o"> <text>“Security interest” has the meaning stated in § 1–201(37) of the Commercial Law Article.</text> </level> <level label="p"> <text>“Seller” means a person who sells or leases or agrees to sell or lease goods under an installment sale agreement.</text> </level> <level label="q"> <level label="1"> <text>“Surety” includes a guarantor.</text> </level> <level label="2"> <text>“Surety” does not include a seller who sells, transfers, or assigns an agreement.</text> </level> </level> <level label="r"> <text>“Unique identifier” means a number or another identifier assigned by NMLS.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-402" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <text>The licensing provisions of this subtitle do not apply to any banking institution, national banking association, or other-state bank having a branch in this State.</text> </section> <section article="gfi" article_name="Financial Institutions" number="11-402.1" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <level label="a"> <text>All revenue received for the licensing and assessment of persons under this subtitle and any other fee, investigation fee or assessment, or revenue received by the Commissioner under this subtitle shall be:</text> <level label="1"> <text>Credited to the Non–Depository Special Fund established under § 2–120 of this article; and</text> </level> <level label="2"> <text>Used in accordance with § 2–120(d) of this article.</text> </level> </level> <level label="b"> <text>Notwithstanding subsection (a) of this section, the Commissioner shall pay all fines and penalties collected by the Commissioner under this subtitle into the General Fund of the State.</text> </level> <level label="c"> <text>Subject to § 2–120(h) of this article, the Commissioner may impose an annual assessment on any licensee under this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-403" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <level label="a"> <text>Except as otherwise provided in this subtitle or §§ 10–14A–03 and 10–14B–03 of the State Government Article, a person may not engage in business as a sales finance company unless the person is licensed by the Commissioner.</text> </level> <level label="b"> <text>A licensee may do business as a sales finance company only at a licensed location or as otherwise authorized by the Commissioner through regulation.</text> </level> <level label="c"> <text>A political subdivision may not require a licensee to have a local license or pay a local fee for permission to engage in business as a sales finance company.</text> </level> <level label="d"> <text>During the time period established by the Commissioner under subsection (e) of this section, each licensee shall:</text> <level label="1"> <text>Obtain and maintain a valid unique identifier issued by NMLS when an account is created with NMLS;</text> </level> <level label="2"> <text>Transfer licensing information to NMLS; and</text> </level> <level label="3"> <text>Pay to the Commissioner a license extension fee calculated in accordance with subsection (e)(5) of this section.</text> </level> </level> <level label="e"> <level label="1"> <text>The Commissioner shall establish a time period that is not less than 2 months within which a licensee must transfer licensing information to NMLS.</text> </level> <level label="2"> <text>The time period that the Commissioner establishes under this subsection shall begin on or after July 1, 2017.</text> </level> <level label="3"> <text>At least 30 days before the transfer period begins, the Commissioner shall:</text> <level label="i"> <text>Notify all licensees of the transfer period; and</text> </level> <level label="ii"> <text>Provide instructions for the transfer of licensing information to NMLS.</text> </level> </level> <level label="4"> <text>For each licensee that complies with subsection (d) of this section, the term of the licensee’s license shall be extended to December 31 of the year in which the license otherwise would have expired.</text> </level> <level label="5"> <text>The license extension fee required under subsection (d)(3) of this section is nonrefundable and, based on the annual license fee, shall be prorated to the number of days between the date the license otherwise would have expired and December 31 of the same year.</text> </level> </level> <level label="f"> <text>Subject to subsection (d) of this section, an applicant for an initial license or a license renewal shall apply for the initial license or license renewal through NMLS:</text> <level label="1"> <text>On or after July 1, 2017; or</text> </level> <level label="2"> <text>If the Commissioner has not joined NMLS with respect to persons required to be licensed under this subtitle as of July 1, 2017, on or after the date that the Commissioner joins, as specified by the Commissioner by public notice.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-404" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <level label="a"> <level label="1"> <text>To apply for a license, an applicant shall:</text> <level label="i"> <text>Complete, sign, and submit to the Commissioner a completed application made under oath in the form, and in accordance with the process, that the Commissioner requires; and</text> </level> <level label="ii"> <text>Provide all the information that the Commissioner requests.</text> </level> </level> <level label="2"> <text>The application shall include:</text> <level label="i"> <text>The applicant’s legal name and any trade name used by the applicant in accordance with § 2–121 of this article;</text> </level> <level label="ii"> <text>The applicant’s principal executive office address;</text> </level> <level label="iii"> <text>If the applicant is not an individual, the name and residence address of each control person;</text> </level> <level label="iv"> <text>The address of each additional location, if any, that:</text> <level label="1"> <text>The general public may reasonably view as a location that does business as a sales finance company, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;</text> </level> <level label="2"> <text>Houses any core operational infrastructure or technology systems;</text> </level> <level label="3"> <text>Conducts any core management, information security and technology, risk and compliance, or finance functions; or</text> </level> <level label="4"> <text>Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle; and</text> </level> </level> <level label="v"> <text>Any other pertinent information that the Commissioner requires.</text> </level> </level> </level> <level label="b"> <text>With the application, the applicant shall pay to the Commissioner:</text> <level label="1"> <text>An investigation fee of $100; and</text> </level> <level label="2"> <text>A license fee of $125.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-405" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <text>The Commissioner may deny an application if the applicant or any current owner, director, officer, member, partner, employee, agent, or spouse of the applicant:</text> <level label="1"> <text>Has had a license revoked under this subtitle;</text> </level> <level label="2"> <text>Was responsible for any act or omission that caused the revocation under this subtitle of the license of any person; or</text> </level> <level label="3"> <text>Was convicted of violating any provision of this subtitle or of any other law that regulates agreements.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-406" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <level label="a"> <text>In addition to the investigation fee required by § 11–404 of this subtitle, if an applicant requests any licensed location outside of the State and the investigation includes travel to that location, the applicant shall pay to the Commissioner, on presentation by the Commissioner of a detailed account, the reasonable travel and living expenses incurred on account of the investigation.</text> </level> <level label="b"> <text>Except for the payments required by this section, the applicant may not offer or pay and the examiner may not solicit or accept any payment with regard to the investigation.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-407" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <level label="a"> <text>When an applicant for a license files the application and pays the fees required by § 11–404 of this subtitle, the Commissioner shall investigate the facts relevant to the application to determine if the applicant meets the requirements of this subtitle.</text> </level> <level label="b"> <text>The Commissioner shall approve or deny each application for a license within 60 days after the date on which the complete application is filed and the fees are paid.</text> </level> <level label="c"> <text>The Commissioner shall issue a license to any applicant who meets the requirements of this subtitle.</text> </level> <level label="d"> <level label="1"> <text>If the Commissioner denies an application, the Commissioner shall:</text> <level label="i"> <text>Notify the applicant of the denial;</text> </level> <level label="ii"> <text>Refund the license fee to the applicant; and</text> </level> <level label="iii"> <text>Keep the investigation fee and any charges collected under § 11–406 of this subtitle.</text> </level> </level> <level label="2"> <level label="i"> <text>Within 20 days after the Commissioner denies an application, the Commissioner shall send a written notice to the applicant stating the reasons for the denial.</text> </level> <level label="ii"> <text>The notice shall be sent by United States mail, e–mail, or any means provided through NMLS to the address listed on the application.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-408" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <level label="a"> <text>Information in NMLS associated with a license approved by the Commissioner under this subtitle shall include the following:</text> <level label="1"> <text>The licensee’s legal name and any trade name used by the licensee in accordance with § 2–121 of this article;</text> </level> <level label="2"> <text>The address of the licensee’s principal executive office; and</text> </level> <level label="3"> <text>The address of each additional location, if any, where the licensee does business and that:</text> <level label="i"> <text>The general public may reasonably view as a location that does business as a sales finance company, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;</text> </level> <level label="ii"> <text>Houses any core operational infrastructure or technology systems;</text> </level> <level label="iii"> <text>Conducts any core management, information security and technology, risk and compliance, or finance functions; or</text> </level> <level label="iv"> <text>Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle.</text> </level> </level> </level> <level label="b"> <text>A licensee shall maintain and update the information in NMLS associated with the licensee’s license to reflect accurately at all times the information required by subsection (a) of this section.</text> </level> <level label="c"> <text>The unique identifier of the licensee shall constitute the license number for the license.</text> </level> <level label="d"> <text>A license authorizes the licensee to do business under the license at any licensed location and under any licensed name, or as otherwise authorized by the Commissioner through regulation.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-409" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <level label="a"> <text>An initial license term shall:</text> <level label="1"> <text>Begin on the date the license is issued; and</text> </level> <level label="2"> <text>Expire on December 31 of the year:</text> <level label="i"> <text>In which the license is issued, if the license is issued before November 1; or</text> </level> <level label="ii"> <text>Immediately following the year in which the license is issued, if the license is issued on or after November 1.</text> </level> </level> </level> <level label="b"> <text>On or after November 1 of the year in which a license expires, the license may be renewed for an additional 1–year term if the licensee:</text> <level label="1"> <text>Otherwise is entitled to be licensed;</text> </level> <level label="2"> <text>Pays to the Commissioner a renewal fee of $125; and</text> </level> <level label="3"> <text>Submits to the Commissioner a renewal application in the form, and in accordance with the process, that the Commissioner requires.</text> </level> </level> <level label="c"> <text>To the extent required or permitted by NMLS, the Commissioner may determine that licenses issued under this subtitle shall expire on a staggered basis.�</text> </level> <level label="d"> <text>A licensee may not renew a license unless, before the submission of the license renewal application, the licensee has transferred the licensee’s licensing information to NMLS in accordance with § 11–403(d) of this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-410" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <level label="a"> <text>A license is not transferable.</text> </level> <level label="b"> <level label="1"> <text>Each licensee shall conspicuously post, in 48 point or larger type, at each licensed location the following information:</text> <level label="i"> <text>The licensee’s unique identifier; and</text> </level> <level label="ii"> <text>A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.</text> </level> </level> <level label="2"> <text>Each licensee shall conspicuously display the following information on the licensee’s website, any software application accessible to the public and used to engage in business as a sales finance company, and profile page within each social media platform the licensee uses:</text> <level label="i"> <text>The licensee’s unique identifier; and</text> </level> <level label="ii"> <text>A link to the NMLS Consumer Access website.</text> </level> </level> </level> <level label="c"> <text>A licensee is not required to post the information required in subsection (b)(1) of this section at a licensed location if the licensee does not regularly grant access to that licensed location to members of the general public.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-411" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <level label="a"> <text>A licensee may not add, delete, or modify a location required to be listed in NMLS under § 11–408(a)(2) or (3) of this subtitle unless:</text> <level label="1"> <text>The licensee provides to the Commissioner, through NMLS and in accordance with any regulations the Commissioner adopts, notice of the addition, deletion, or modification;</text> </level> <level label="2"> <text>The addition, deletion, or modification of the location is recorded with the information associated with the licensee’s license in NMLS; and</text> </level> <level label="3"> <text>The addition, deletion, or modification of the location otherwise complies with this subtitle.</text> </level> </level> <level label="b"> <text>The licensee may not do business at a location required to be listed in NMLS by § 11–408(a)(2) or (3) of this subtitle until the location is recorded with the information associated with the licensee’s license in NMLS.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-412" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <level label="a"> <text>A licensee may surrender the license through NMLS in accordance with the process that the Commissioner requires.</text> </level> <level label="b"> <text>If a license is surrendered voluntarily, or is suspended or revoked, the Commissioner may not refund any part of the license fee regardless of the time remaining in the license term.</text> </level> <level label="c"> <text>The surrender of a license does not affect any civil or criminal liability of the licensee for acts committed before the license was surrendered.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-412.1" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <level label="a"> <level label="1"> <text>The requirements under any federal law and Title 4, Subtitles 1 through 4 of the General Provisions Article regarding the privacy or confidentiality of information or material provided to NMLS and any privilege arising under federal or state law, including the rules of any federal or state court with respect to that information or material, shall continue to apply to that information or material after the information or material has been disclosed to NMLS.</text> </level> <level label="2"> <text>The information and material may be shared with all state and federal regulatory officials having oversight authority over persons required to be licensed under this subtitle, including the Financial Crimes Enforcement Network and the Office of Foreign Assets Control, and any successor to these agencies, without the loss of privilege or the loss of confidentiality protections provided by federal law or Title 4, Subtitles 1 through 4 of the General Provisions Article.</text> </level> </level> <level label="b"> <text>Information or material that is subject to a privilege or confidentiality under subsection (a) of this section may not be subject to:</text> <level label="1"> <text>Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or agency of the federal government or a state that has received the information or material; or</text> </level> <level label="2"> <text>Subpoena, discovery, or admission into evidence, in any private civil litigation or administrative process, unless, with respect to any privilege held by NMLS, the person to whom the information or material pertains waives, in whole or in part, that privilege.</text> </level> </level> <level label="c"> <text>Any provision of Title 4, Subtitles 1 through 5 of the General Provisions Article relating to the disclosure of any information or material described in subsection (a) of this section that is inconsistent with subsection (a) of this section shall be superseded by the requirements of this section.</text> </level> <level label="d"> <text>This section does not apply to information or material relating to publicly adjudicated disciplinary and enforcement actions against a person required to be licensed under this subtitle that is included in NMLS and designated for access by the public.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-413" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <level label="a"> <text>The Commissioner may not examine or audit any licensee or other person except as expressly provided in this section.</text> </level> <level label="b"> <level label="1"> <text>If a buyer has reason to believe that any person has violated any provision of this subtitle or of any other law that regulates agreements, the buyer may file with the Commissioner a written complaint that states the details of the alleged violation.</text> </level> <level label="2"> <text>On receipt of the written complaint, the Commissioner may inspect any books, records, letters, and contracts of any licensee, seller, or other person that relate to the complaint.</text> </level> </level> <level label="c"> <text>In investigating a written complaint made under this section, the Commissioner may:</text> <level label="1"> <text>Hold a hearing on the complaint at a time and place in this State that are reasonably convenient to the parties involved;</text> </level> <level label="2"> <text>Subpoena witnesses;</text> </level> <level label="3"> <text>Take depositions of witnesses who reside outside of this State in the same manner as provided for depositions to be taken in civil actions in courts of record;</text> </level> <level label="4"> <text>Pay witnesses the same fees and mileage for their attendance as provided for witnesses in civil actions in courts of record; and</text> </level> <level label="5"> <text>Administer oaths.</text> </level> </level> <level label="d"> <level label="1"> <text>If any person fails to comply with an order or subpoena of the Commissioner under this subtitle or to appear as a witness and testify concerning any matter about which the person may be interrogated under this subtitle, the Commissioner may file a petition for enforcement with the circuit court for any county.</text> </level> <level label="2"> <text>On petition by the Commissioner, the court, if it finds it appropriate to do so, shall order the person to:</text> <level label="i"> <text>Obey the order or subpoena; and</text> </level> <level label="ii"> <text>Produce any necessary records, documents, or other evidence.</text> </level> </level> </level> <level label="e"> <text>The Commissioner shall make findings on any written complaint made under this section and send a copy of the findings to each person involved in the complaint.</text> </level> <level label="f"> <text>A person may not knowingly refuse to permit the Commissioner to conduct any investigation or examination authorized by this section.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-414" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <text>Subject to the hearing provisions of § 11–415 of this subtitle, the Commissioner may suspend or revoke the license of any licensee, if:</text> <level label="1"> <text>The licensee knowingly or without exercising due care:</text> <level label="i"> <text>Violates any provision of this subtitle or of any other law that regulates agreements; or</text> </level> <level label="ii"> <text>Fails to comply with any demand or requirement that the Commissioner makes under this subtitle;</text> </level> </level> <level label="2"> <text>The licensee makes any material misstatement in an application for a license;</text> </level> <level label="3"> <text>The licensee defrauds any buyer, to the buyer’s damage;</text> </level> <level label="4"> <text>The licensee willfully fails to carry out any written agreement with a buyer;</text> </level> <level label="5"> <text>The licensee knowingly and repeatedly violates any provision of the Maryland Consumer Debt Collection Act;</text> </level> <level label="6"> <text>An officer, director, or trustee of or partner in the licensee is responsible for any act or omission that would be a ground for suspending or revoking a license; or</text> </level> <level label="7"> <text>Any agent or employee of the licensee is responsible for any act or omission that would be a ground for suspending or revoking a license, if the licensee:</text> <level label="i"> <text>Approves or knows of that or similar acts or omissions; and</text> </level> <level label="ii"> <text>After giving approval or learning of the act or omission, keeps any benefit, proceeds, profit, or advantage resulting from the act or omission or otherwise ratifies the act or omission.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-415" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <level label="a"> <text>Before the Commissioner takes any action under § 11-414 of this subtitle, the Commissioner shall give the licensee an opportunity for a hearing before the Commissioner.</text> </level> <level label="b"> <text>Notice of the hearing shall be given and the hearing shall be held in accordance with the Administrative Procedure Act.</text> </level> <level label="c"> <text>The hearing notice to be given to the licensee shall be sent by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to the principal place of business of the licensee in this State at least 10 days before the hearing.</text> </level> <level label="d"> <text>An order suspending or revoking a license shall state the grounds on which it is based and is not effective until 10 days after written notice of the order is sent to the licensee by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to the principal place of business of the licensee in this State.</text> </level> <level label="e"> <text>The Commissioner shall adopt rules and regulations for:</text> <level label="1"> <text>The conduct of hearings; and</text> </level> <level label="2"> <text>The form of findings and orders.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-416" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <level label="a"> <text>Any person aggrieved by a decision of the Commissioner to deny an application for a license or to suspend or revoke a license may appeal to:</text> <level label="1"> <text>The circuit court for the county where the licensee did or has applied to do business; or</text> </level> <level label="2"> <text>The Circuit Court for Baltimore City.</text> </level> </level> <level label="b"> <text>The Commissioner may stay an order that is appealed until the determination of the appeal.</text> </level> <level label="c"> <text>An appeal under this section shall be tried de novo.</text> </level> <level label="d"> <text>If a decision of the Commissioner is appealed, the court may reverse, affirm, or modify the decision.</text> </level> <level label="e"> <text>An aggrieved person or the Commissioner may appeal the decision of the court to the Court of Special Appeals.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-417" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <level label="a"> <text>The surrender, suspension, or revocation of a license does not impair or affect any obligation under any agreement that the licensee entered into or acquired before the license was surrendered, suspended, or revoked.</text> </level> <level label="b"> <text>In enforcing an agreement and in dealing with the parties to that agreement, a person whose license has been surrendered, suspended, or revoked remains subject to this subtitle, including the authority of the Commissioner to examine and investigate under § 11-413 of this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-418" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <text>A person may not knowingly:</text> <level label="1"> <text>Make an incorrect statement of material fact in any application, report, or other statement filed under this subtitle; or</text> </level> <level label="2"> <text>Fail to state any material fact that is necessary to give the Commissioner any information that the Commissioner requires under this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-419" title_number="11" title_name="Consumer Credit" subtitle_number="4" subtitle_name="Sales Finance Companies -- Licensing Provisions"> <text>Any person who violates or participates in the violation of any provision of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $500 or imprisonment not exceeding 6 months or both.</text> </section> <section article="gfi" article_name="Financial Institutions" number="11-501" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Borrower” means a person who makes a loan application for or receives a loan or other extension of credit that is or is intended to be secured in whole or in part by any interest in a dwelling or residential real estate located in Maryland.</text> </level> <level label="b–1"> <level label="1"> <text>“Conventional home mortgage loan” means any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling or residential real estate on which a dwelling is constructed or intended to be constructed.</text> </level> <level label="2"> <text>“Conventional home mortgage loan” includes a loan in which funds are advanced through a shared appreciation agreement.</text> </level> <level label="3"> <text>“Conventional home mortgage loan” does not include a loan that is insured or guaranteed by the federal government.</text> </level> </level> <level label="c"> <level label="1"> <text>“Dwelling” means a residential structure or mobile home that contains one to four family housing units or individual units of condominiums or cooperatives.</text> </level> <level label="2"> <text>“Dwelling” does not include a residential structure or mobile home unless the residential structure or mobile home, or at least one unit contained in the residential structure or mobile home, is owner–occupied.</text> </level> </level> <level label="d"> <level label="1"> <text>“Independent evidence of commercial purpose” means, where a mortgage loan is made for a commercial purpose to an individual, any and all documentation by which the mortgage lender, prior to the making or procurement of the loan, establishes that the borrower is seeking funds for a legitimate commercial enterprise.</text> </level> <level label="2"> <text>“Independent evidence of commercial purpose” does not include an affidavit of the borrower without supporting evidence, except where:</text> <level label="i"> <text>The borrower is seeking funds to start a business and has not yet incorporated or prepared documentation or proof of ownership of a commercial enterprise; and</text> </level> <level label="ii"> <text>The affidavit states the purpose for which the proceeds of the mortgage loan are to be used and the nature of the business conducted or to be conducted by the borrower.</text> </level> </level> </level> <level label="e"> <text>“Interest in real estate” includes:</text> <level label="1"> <text>A confessed judgment note or consent judgment required or obtained by any person acting as a mortgage lender for the purpose of acquiring a lien on a dwelling or residential real estate;</text> </level> <level label="2"> <text>A sale and leaseback required or obtained by any person acting as a mortgage lender for the purpose of creating a lien on a dwelling or residential real estate;</text> </level> <level label="3"> <text>A mortgage, deed of trust or lien other than a judgment lien, on a dwelling or residential real estate; and</text> </level> <level label="4"> <text>Any other security interest that has the effect of creating a lien on a dwelling or residential real estate in Maryland.</text> </level> </level> <level label="f"> <text>“License” means a license issued in any form by the Commissioner under this subtitle to engage in business as a mortgage lender, including as provided for through NMLS.</text> </level> <level label="f–1"> <text>“Licensed location” means any location listed by the licensee in NMLS in accordance with this subtitle.</text> </level> <level label="f–2"> <text>“Licensed name” means:</text> <level label="1"> <text>The licensee’s legal name; and</text> </level> <level label="2"> <text>Any trade name used by the licensee in accordance with § 2–121 of this article.</text> </level> </level> <level label="g"> <text>“Licensee” means a person licensed under this subtitle to engage in business as a mortgage lender.</text> </level> <level label="h"> <level label="1"> <text>“Loan application” means any oral or written request for an extension of credit that is made in accordance with procedures established by a mortgage lender for the purpose of inducing the lender to seek to procure or make a mortgage loan.</text> </level> <level label="2"> <text>“Loan application” does not include the use of an account or line of credit to obtain a loan within a previously established credit limit.</text> </level> </level> <level label="i"> <text>“Mobile home” means a structure, including the plumbing, heating, air conditioning, and electrical systems contained in the structure, that is:</text> <level label="1"> <text>Transportable in one or more sections;</text> </level> <level label="2"> <text>Eight or more body feet in width and 30 or more body feet in length;</text> </level> <level label="3"> <text>Built on a permanent chassis; and</text> </level> <level label="4"> <text>Permanently attached to land or connected to utility, water, or sewage facilities.</text> </level> </level> <level label="j"> <text>“Mortgage broker” means a person who:</text> <level label="1"> <text>For a fee or other valuable consideration, whether received directly or indirectly, aids or assists a borrower in obtaining a mortgage loan; and</text> </level> <level label="2"> <text>Is not named as a lender in the agreement, note, deed of trust, or other evidence of the indebtedness.</text> </level> </level> <level label="k"> <level label="1"> <text>“Mortgage lender” means any person who:</text> <level label="i"> <text>Is a mortgage broker;</text> </level> <level label="ii"> <text>Makes a mortgage loan to any person; or</text> </level> <level label="iii"> <text>Is a mortgage servicer.</text> </level> </level> <level label="2"> <text>“Mortgage lender” does not include:</text> <level label="i"> <text>A financial institution that accepts deposits and is regulated under Title 3, Title 4, Title 5, or Title 6 of this article;</text> </level> <level label="ii"> <text>The Federal Home Loan Mortgage Corporation;</text> </level> <level label="iii"> <text>The Federal National Mortgage Association;</text> </level> <level label="iv"> <text>The Government National Mortgage Association;</text> </level> <level label="v"> <text>Any person engaged exclusively in the acquisition of all or any portion of a mortgage loan under any federal, State, or local governmental program of mortgage loan purchases; or</text> </level> <level label="vi"> <text>An affiliated insurance producer–mortgage loan originator licensed under § 11–603.1 of this title.</text> </level> </level> </level> <level label="l"> <level label="1"> <text>“Mortgage lending business” means the activities set forth in the definition of “mortgage lender” in subsection (k) of this section which require that person to be licensed under this subtitle.</text> </level> <level label="2"> <text>“Mortgage lending business” includes the making or procuring of mortgage loans secured by a dwelling or residential real estate located outside Maryland.</text> </level> </level> <level label="m"> <level label="1"> <text>“Mortgage loan” means any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling or residential real estate on which a dwelling is constructed or intended to be constructed.</text> </level> <level label="2"> <text>“Mortgage loan” includes a loan in which funds are advanced through a shared appreciation agreement.</text> </level> </level> <level label="n"> <text>“Mortgage loan originator” has the meaning stated in § 11–601 of this title.</text> </level> <level label="o"> <text>“Mortgage servicer” means a person who:</text> <level label="1"> <text>Engages in whole or in part in the business of servicing mortgage loans for others; or</text> </level> <level label="2"> <text>Collects or otherwise receives payments on mortgage loans directly from borrowers for distribution to any other person.</text> </level> </level> <level label="p"> <text>“Passive trust” means a trust that:</text> <level label="1"> <text>Acquires or is assigned mortgage loans in whole or in part;</text> </level> <level label="2"> <text>Does not make mortgage loans;</text> </level> <level label="3"> <text>Is not a mortgage broker or a mortgage servicer; and</text> </level> <level label="4"> <text>Is not engaged in the servicing of mortgage loans, which does not include the act of transmitting or directing payments received by a mortgage servicer.</text> </level> </level> <level label="q"> <text>“Person” means a natural person, corporation, limited liability company, partnership, business trust, statutory trust, or association.</text> </level> <level label="r"> <text>“Residential real estate” means any owner–occupied real property located in Maryland on which a dwelling is constructed or intended to be constructed.</text> </level> <level label="s"> <text>“Shared appreciation agreement” means a writing evidencing a transaction or any option, future, or any other derivative between a person and a consumer where the consumer receives money or any other item of value in exchange for an interest or future interest in a dwelling or residential real estate, or a future obligation to repay a sum on the occurrence of an event such as:</text> <level label="1"> <text>The transfer of ownership;</text> </level> <level label="2"> <text>A repayment maturity date;</text> </level> <level label="3"> <text>The death of the consumer; or</text> </level> <level label="4"> <text>Any other event contemplated by the writing.</text> </level> </level> <level label="t"> <text>“State” means the State of Maryland.</text> </level> <level label="u"> <text>“Trust” includes any trust established under the laws of the State or any other state.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-502" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>In this section, “affiliate” means any company that controls, is controlled by, or is under common control with an institution described in subsection (c) of this section.</text> </level> <level label="b"> <text>The provisions of this subtitle do not apply to:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>Any insurance company authorized to do business in the State;</text> </level> <level label="3"> <text>Any corporate instrumentality of the Government of the United States including:</text> <level label="i"> <text>The Federal Home Loan Mortgage Corporation;</text> </level> <level label="ii"> <text>The Federal National Mortgage Association;</text> </level> <level label="iii"> <text>The Government National Mortgage Association; and</text> </level> <level label="iv"> <text>A trust established by any corporate instrumentality of the Government of the United States for the purpose of acquiring mortgage loans;</text> </level> </level> <level label="4"> <text>Any person who takes back a deferred purchase money mortgage in connection with the sale of:</text> <level label="i"> <text>A dwelling or residential real estate owned by, and titled in the name of, that person; or</text> </level> <level label="ii"> <text>A new residential dwelling that the person built;</text> </level> </level> <level label="5"> <text>A nonprofit charitable organization registered with the Maryland Secretary of State or a nonprofit religious organization;</text> </level> <level label="6"> <text>An employer making a mortgage loan to an employee;</text> </level> <level label="7"> <text>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;</text> </level> <level label="8"> <text>A real estate broker who:</text> <level label="i"> <text>Is licensed in the State; and</text> </level> <level label="ii"> <text>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;</text> </level> </level> <level label="9"> <text>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;</text> </level> <level label="10"> <text>A subsidiary or affiliate of an institution described in subsection (c) of this section, which subsidiary or affiliate:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>Files with the Commissioner, prior to making mortgage loans, information sufficient to identify:</text> <level label="1"> <text>The correct corporate name of the subsidiary or affiliate;</text> </level> <level label="2"> <text>An address and telephone number of a contact person for the subsidiary or affiliate;</text> </level> <level label="3"> <text>A resident agent; and</text> </level> <level label="4"> <text>Any additional information considered necessary by the Commissioner for protection of the public;</text> </level> </level> </level> <level label="11"> <text>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;</text> </level> <level label="12"> <text>Employees acting within the scope of their employment with:</text> <level label="i"> <text>A licensed mortgage lender; or</text> </level> <level label="ii"> <text>A person who is exempt from licensure under this subtitle; or</text> </level> </level> <level label="13"> <text>A passive trust.</text> </level> </level> <level label="c"> <text>The exemption in subsection (b)(10) of this section applies to subsidiaries and affiliates of:</text> <level label="1"> <text>Any bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of this State; or</text> </level> <level label="2"> <text>Any other–state bank, as that term is defined in § 5–1001 of this article, having a branch that accepts deposits in this State.</text> </level> </level> <level label="d"> <text>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.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-503" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <text>The Commissioner may adopt rules and regulations to carry out the provisions of this subtitle.</text> </section> <section article="gfi" article_name="Financial Institutions" number="11-503.1" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>The Commissioner shall set by regulation the fees provided for in this subtitle.</text> </level> <level label="b"> <text>The fees established by the Commissioner under this section together with any assessments of licensees under this subtitle shall be reasonable and set in a manner that will collectively produce funds sufficient to cover the direct and indirect costs of fulfilling the statutory and regulatory duties of the Commissioner related to licensees in accordance with this subtitle.</text> </level> <level label="c"> <text>The Commissioner shall publish the fee schedule set by the Commissioner.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-503.2" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>All revenue received for the licensing and assessment of persons under this subtitle and any other fee, examination or investigation fee or assessment, or revenue received by the Commissioner under this subtitle shall be:</text> <level label="1"> <text>Credited to the Non–Depository Special Fund established under § 2–120 of this article; and</text> </level> <level label="2"> <text>Used in accordance with § 2–120(d) of this article.</text> </level> </level> <level label="b"> <text>Notwithstanding subsection (a) of this section, the Commissioner shall pay all fines and penalties collected by the Commissioner under this subtitle into the General Fund of the State.</text> </level> <level label="c"> <text>Subject to § 2–120(h) of this article, the Commissioner may impose an annual assessment on any licensee under this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-504" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <text>A person may not act as a mortgage lender unless the person is:</text> <level label="1"> <text>A licensee; or</text> </level> <level label="2"> <text>A person exempted from licensing under this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-505" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>A license issued under this subtitle authorizes the licensee to act as a mortgage lender under the license at any licensed location and under any licensed name, or as otherwise authorized by the Commissioner through regulation.</text> </level> <level label="b"> <text>Except as provided in subsection (c) of this section or as otherwise authorized by the Commissioner through regulation, a licensee may do business as a mortgage lender only at a licensed location.</text> </level> <level label="c"> <level label="1"> <text>A licensee may not allow any note, or loan contract, mortgage, or evidence of indebtedness secured by a secondary mortgage or deed of trust on a dwelling or residential real estate to be signed or executed at any place other than a licensed location, except at the office of:</text> <level label="i"> <text>The attorney for the borrower or for the licensee; or</text> </level> <level label="ii"> <text>A title insurance company, a title company, or an attorney for a title insurance company or a title company.</text> </level> </level> <level label="2"> <text>Notwithstanding paragraph (1) of this subsection, a licensee may conduct the loan closing at another location at the written request of the borrower or the borrower’s designee to accommodate the borrower because of the borrower’s sickness.</text> </level> <level label="3"> <text>The Commissioner shall adopt regulations to ensure that the loan application process is conducted fairly and in a manner consistent with the best interests of both the borrower and mortgage lender.</text> </level> </level> <level label="d"> <text>A license may be issued under this subtitle to a business entity whose principal executive office is located outside the State if the business entity maintains a resident agent within the State at all times during the term of the license, regardless of whether:</text> <level label="1"> <text>The business entity maintains any office within the State; or</text> </level> <level label="2"> <text>The activities of the business entity constitute doing business or having a tax situs in the State under the applicable provisions of the Corporations and Associations Article.</text> </level> </level> <level label="e"> <text>A person exempt from licensing under this subtitle who employs a mortgage loan originator licensed under Subtitle 6 of this title shall be registered with NMLS.</text> </level> <level label="f"> <text>Information in NMLS associated with a license approved by the Commissioner under this subtitle shall include the following:</text> <level label="1"> <text>The licensee’s legal name and any trade name used by the licensee in accordance with § 2–121 of this article;</text> </level> <level label="2"> <text>The address of the licensee’s principal executive office; and</text> </level> <level label="3"> <text>The address of each additional location, if any, where the licensee does business and that:</text> <level label="i"> <text>The general public may reasonably view as a location that does business as a mortgage lender, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;</text> </level> <level label="ii"> <text>Houses any core operational infrastructure or technology systems;</text> </level> <level label="iii"> <text>Conducts any core management, information security and technology, risk and compliance, or finance functions; or</text> </level> <level label="iv"> <text>Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle.</text> </level> </level> </level> <level label="g"> <text>A licensee shall maintain and update the information in NMLS associated with the licensee’s license to reflect accurately at all times the information required by subsection (f) of this section.</text> </level> <level label="h"> <text>The unique identifier of the licensee shall constitute the license number for the license.</text> </level> <level label="i"> <text>A licensee may not conduct any business as a mortgage lender:</text> <level label="1"> <text>Under any name other than a licensed name; or</text> </level> <level label="2"> <text>Except as provided in subsection (c) of this section or as otherwise authorized by the Commissioner through regulation, at a location other than a licensed location.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-506" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>To qualify for a license, an applicant shall satisfy the Commissioner that the applicant is of good moral character and has sufficient financial responsibility, business experience, and general fitness to:</text> <level label="1"> <text>Engage in business as a mortgage lender;</text> </level> <level label="2"> <text>Warrant the belief that the business will be conducted lawfully, honestly, fairly, and efficiently; and</text> </level> <level label="3"> <text>Command the confidence of the public.</text> </level> </level> <level label="b"> <level label="1"> <text>To qualify for a license, the applicant shall satisfy the Commissioner that the applicant has at least 3 years of experience in the mortgage lending business.</text> </level> <level label="2"> <text>If the applicant is a sole proprietor, the applicant shall have the required experience.</text> </level> <level label="3"> <text>If the applicant is a joint venture, or general or limited partnership, at least one of the coventurers or general partners shall have the required experience.</text> </level> <level label="4"> <text>If the applicant is a business entity of any other kind, type, or classification, at least one of the principal officers or members shall have the required experience.</text> </level> </level> <level label="c"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, the Commissioner may deny an application for a license to any person who has been officially reprimanded or has committed any act that would be a ground for suspension or revocation of a license under this subtitle.</text> </level> <level label="2"> <text>The Commissioner shall deny an application for a license filed by:</text> <level label="i"> <text>An individual who has been convicted within the last 10 years of a felony involving fraud, theft, or forgery; and</text> </level> <level label="ii"> <text>An entity that has a director, officer, partner, member, or owner of 10 percent or more of the entity who has been convicted within the last 10 years of a felony involving fraud, theft, or forgery.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-506.1" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>This section does not apply to any corporation the securities of which are exempt from registration under § 11–601(8) or (12) of the Corporations and Associations Article.</text> </level> <level label="b"> <text>In connection with an initial application for a license under § 11–507 of this subtitle, and at any other time the Commissioner requests, an applicant or licensee shall provide to NMLS information concerning the applicant’s identity, including:</text> <level label="1"> <text>Fingerprints for submission to the Federal Bureau of Investigation, and any other governmental agency or entity authorized to receive this information, for a state, national, or international criminal history background check; and</text> </level> <level label="2"> <text>Personal history and experience in a form prescribed by NMLS, including the submission of authorization for NMLS and the Commissioner to obtain:</text> <level label="i"> <text>An independent credit report from a consumer reporting agency described in the federal Fair Credit Reporting Act, 15 U.S.C. § 1681a(p); and</text> </level> <level label="ii"> <text>Information related to any administrative, civil, or criminal findings by any governmental jurisdiction.</text> </level> </level> </level> <level label="c"> <text>The Commissioner may request from the Federal Bureau of Investigation or NMLS, as applicable, for each applicant or licensee who is required to provide fingerprints under subsection (b) of this section:</text> <level label="1"> <level label="i"> <text>The state, national, or international criminal history records of the applicant or licensee; and</text> </level> <level label="ii"> <text>A printed statement listing any conviction or other disposition of, and any plea of guilty or nolo contendere to, any criminal charge;</text> </level> </level> <level label="2"> <level label="i"> <text>An update of the initial criminal history records check or criminal history background check of the applicant or licensee; and</text> </level> <level label="ii"> <text>A revised statement listing any conviction or other disposition of, and any plea of guilty or nolo contendere to, any criminal charge occurring after the date of the initial criminal history records check or criminal history background check; and</text> </level> </level> <level label="3"> <text>An acknowledged receipt of the application for a criminal history records check or criminal history background check of the applicant or licensee.</text> </level> </level> <level label="d"> <text>An applicant or licensee who is required to provide fingerprints under subsection (b) of this section shall pay any processing or other fees required by the Federal Bureau of Investigation and NMLS.</text> </level> <level label="e"> <text>To implement this subtitle, the Commissioner may use NMLS as a channeling agent to request information from and distribute information to the Department of Justice, any other governmental agency with subject matter jurisdiction, and any other state licensing entity that has loan originators registered with NMLS.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-507" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <level label="1"> <text>To apply for a license, an applicant shall:</text> <level label="i"> <text>Complete, sign, and submit to the Commissioner an application made under oath in the form, and in accordance with the process, that the Commissioner requires; and</text> </level> <level label="ii"> <text>Provide all information that the Commissioner requests.</text> </level> </level> <level label="2"> <text>The application shall include:</text> <level label="i"> <text>The applicant’s legal name and any trade name used by the applicant in accordance with § 2–121 of this article;</text> </level> <level label="ii"> <text>The applicant’s principal executive office address;</text> </level> <level label="iii"> <text>If the applicant is not an individual, the name and residence address of each control person;</text> </level> <level label="iv"> <text>The address of each additional location, if any, that:</text> <level label="1"> <text>The general public may reasonably view as a location that does business as a mortgage lender, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;</text> </level> <level label="2"> <text>Houses any core operational infrastructure or technology systems;</text> </level> <level label="3"> <text>Conducts any core management, information security and technology, risk and compliance, or finance functions; or</text> </level> <level label="4"> <text>Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle; and</text> </level> </level> <level label="v"> <text>Any other pertinent information that the Commissioner requires.</text> </level> </level> <level label="3"> <text>The applicant shall comply with all conditions and provisions of the application for licensure and be issued a license before acting as a mortgage lender.</text> </level> </level> <level label="b"> <text>The applicant shall pay to the Commissioner the following fees:</text> <level label="1"> <text>A nonrefundable investigation fee set by the Commissioner; and</text> </level> <level label="2"> <text>A nonrefundable license fee set by the Commissioner.</text> </level> </level> <level label="c"> <text>In addition to the license fee required under subsection (b)(2) of this section, an applicant for an initial license shall pay to NMLS any fees that NMLS imposes in connection with the application.</text> </level> <level label="d"> <text>In addition to any sanctions that may be imposed under this subtitle by the Commissioner, a nonrefundable surcharge of $500 shall be paid:</text> <level label="1"> <text>With an application if the applicant has begun acting as a mortgage lender without a license; and</text> </level> <level label="2"> <text>By a licensee if the licensee has acted as a mortgage lender at a location that is not a licensed location.</text> </level> </level> <level label="e"> <text>A person who knowingly makes a false statement under oath on an application filed with the Commissioner under this section is guilty of perjury and on conviction is subject to the penalties of § 9–101 of the Criminal Law Article.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-508" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>With the application for a license, an applicant shall file a surety bond with the Commissioner.</text> </level> <level label="b"> <level label="1"> <text>The bond shall run to the Commissioner, as obligee, for the benefit of:</text> <level label="i"> <text>The State; and</text> </level> <level label="ii"> <text>Any mortgage loan borrower who has been damaged by a violation committed by a licensee of any law or regulation governing the activities of mortgage lenders.</text> </level> </level> <level label="2"> <text>The bond shall be:</text> <level label="i"> <text>In an amount determined by the Commissioner under subsection (c) of this section;</text> </level> <level label="ii"> <text>Issued by a surety company that:</text> <level label="1"> <text>Is authorized to do business in the State; and</text> </level> <level label="2"> <text>Holds a certificate of authority issued by the Maryland Insurance Commissioner; and</text> </level> </level> <level label="iii"> <text>Conditioned that the licensee shall comply with all Maryland laws regulating the activities of mortgage lenders and mortgage loan lending.</text> </level> </level> <level label="3"> <text>The liability of the surety:</text> <level label="i"> <text>Shall be continuous;</text> </level> <level label="ii"> <text>May not be aggregated or cumulative, whether or not the bond is renewed, continued, replaced, or modified;</text> </level> <level label="iii"> <text>May not be determined by adding together the penal sum of the bond, or any part of the penal sum of the bond, in existence at any two or more points in time;</text> </level> <level label="iv"> <text>Shall be considered to be one continuous obligation, regardless of increases or decreases in the penal sum of the bond;</text> </level> <level label="v"> <text>May not be affected by:</text> <level label="1"> <text>The insolvency or bankruptcy of the licensee;</text> </level> <level label="2"> <text>Any misrepresentation, breach of warranty, failure to pay a premium, or any other act or omission of the licensee or an agent of the licensee; or</text> </level> <level label="3"> <text>The suspension of the licensee’s license;</text> </level> </level> <level label="vi"> <text>May not require an administrative enforcement action by the Commissioner as a prerequisite to liability; and</text> </level> <level label="vii"> <text>Shall continue for 3 years after the later of the date on which:</text> <level label="1"> <text>The bond is canceled; or</text> </level> <level label="2"> <text>The licensee, for any reason, ceases to be licensed.</text> </level> </level> </level> <level label="4"> <level label="i"> <text>A bond may be canceled by the surety or the licensee by giving notice of cancellation to the Commissioner.</text> </level> <level label="ii"> <text>Notice under subparagraph (i) of this paragraph shall:</text> <level label="1"> <text>Be in writing; and</text> </level> <level label="2"> <text>Be sent by certified mail, return receipt requested.</text> </level> </level> <level label="iii"> <text>A cancellation of a bond under this paragraph is not effective until 90 days after receipt of a notice of cancellation by the Commissioner.</text> </level> </level> <level label="5"> <text>A claim against the bond may be filed with the surety by:</text> <level label="i"> <text>A claimant; or</text> </level> <level label="ii"> <text>The Commissioner for the benefit of a claimant or the State.</text> </level> </level> <level label="6"> <text>If the amount of claims against a bond exceeds the amount of the bond, the surety:</text> <level label="i"> <text>Shall pay the amount of the bond to the Commissioner for pro rata distribution to claimants; and</text> </level> <level label="ii"> <text>Is relieved of liability under the bond.</text> </level> </level> <level label="7"> <text>If the penal amount of a bond is reduced by payment of a claim or judgment, the licensee shall file a new or additional bond with the Commissioner.</text> </level> <level label="8"> <text>A penalty imposed against a licensee under § 2–115(b) of this article or § 11–517(c) of this subtitle may be collected and paid from the proceeds of a bond required under this section.</text> </level> </level> <level label="c"> <level label="1"> <text>The amount of the surety bond under subsection (b) of this section shall be in an amount of not less than $50,000 and not more than $750,000, as determined by the Commissioner for each licensee.</text> </level> <level label="2"> <text>In setting the amount of the surety bond, the Commissioner may consider:</text> <level label="i"> <text>The nature and volume of the business or proposed business of the licensee or applicant;</text> </level> <level label="ii"> <text>The financial condition of the licensee or applicant, including:</text> <level label="1"> <text>The amount, nature, quality, and liquidity of the assets of the licensee or applicant;</text> </level> <level label="2"> <text>The amount and nature of the liabilities, including contingent liabilities, of the licensee or applicant;</text> </level> <level label="3"> <text>The history of and prospects for the licensee or applicant to earn and retain income; and</text> </level> <level label="4"> <text>The potential harm to consumers if the applicant or licensee becomes financially impaired;</text> </level> </level> <level label="iii"> <text>The quality of the operations of the licensee or applicant;</text> </level> <level label="iv"> <text>The quality of the management of the licensee or applicant;</text> </level> <level label="v"> <text>The nature and quality of the person that has control of the licensee or applicant; and</text> </level> <level label="vi"> <text>Any other factor that the Commissioner considers relevant.</text> </level> </level> </level> <level label="d"> <text>Subject to approval by the Commissioner, an applicant for license who files an application for a new license may satisfy the bonding requirement under this section by establishing a trust account with or obtaining an irrevocable letter of credit from a financial institution insured by the Federal Deposit Insurance Corporation in an amount equal to the bond required under this section.</text> </level> <level label="e"> <level label="1"> <text>The Commissioner may adopt regulations reasonably necessary to assure that the proper surety bond amount established by this section is maintained by each licensee throughout each licensing term.</text> </level> <level label="2"> <text>The regulations may provide for periodic reporting, recalculation, and enforcement of required bond amounts.</text> </level> </level> <level label="f"> <text>If a mortgage servicer is subject to a receivership proceeding, the Commissioner or a receiver appointed under § 7–404.1(b)(2) or § 7–506(b) of the Real Property Article, without regard to any priorities, preferences, or adverse claims, may:</text> <level label="1"> <text>Reduce the bond or the deposit in lieu of a bond to cash; and</text> </level> <level label="2"> <text>Use the cash to defray the costs associated with the receivership.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-508.1" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>An applicant for a new license or for the renewal of a license shall satisfy the Commissioner that the applicant or licensee has, and at all times will maintain, a minimum tangible net worth computed according to generally accepted accounting principles or, with respect to an applicant or licensee described in item (1) of this subsection, any other recognized comprehensive basis of accounting approved by the Commissioner:</text> <level label="1"> <text>In the case of an applicant that applies to act as a mortgage broker or a licensee that acts as a mortgage broker, in the amount of $25,000;</text> </level> <level label="2"> <text>In the case of an applicant that applies to act as a mortgage loan servicer that operates as an approved servicer for a government–sponsored enterprise (GSE) or a licensee that acts as a mortgage servicer and operates as an approved servicer for a GSE, in the largest amount required of the applicant or licensee by the standards of the GSE;</text> </level> <level label="3"> <text>In the case of an applicant that applies to act as a mortgage servicer that does not operate as an approved servicer for a GSE or a licensee that acts as a mortgage servicer that does not operate as an approved servicer for a GSE:</text> <level label="i"> <text>$100,000, if the unpaid principal balance of the entire servicing portfolio is less than or equal to $50,000,000;</text> </level> <level label="ii"> <text>$250,000, if the unpaid principal of the entire servicing portfolio is greater than $50,000,000 but less than or equal to $100,000,000;</text> </level> <level label="iii"> <text>$500,000, if the unpaid principal balance of the entire servicing portfolio is greater than $100,000,000 but less than or equal to $250,000,000; or</text> </level> <level label="iv"> <text>$1,000,000, if the unpaid principal balance of the entire servicing portfolio is greater than $250,000,000; and</text> </level> </level> <level label="4"> <text>In the case of an applicant that applies to lend money secured by a dwelling or residential real estate or a licensee that lends money secured by a dwelling or residential real estate, in the amount of:</text> <level label="i"> <text>$25,000, if the applicant or licensee, in the 12 months prior to the license application or the renewal application, lent in the aggregate not more than $1,000,000 secured by a dwelling or residential real estate;</text> </level> <level label="ii"> <text>$50,000, if the applicant or licensee, in the 12 months prior to the license application or the renewal application, lent in the aggregate more than $1,000,000, but not more than $5,000,000 secured by a dwelling or residential real estate;</text> </level> <level label="iii"> <text>$100,000, if the applicant or licensee, in the 12 months prior to the license application or the renewal application, lent in the aggregate more than $5,000,000, but not more than $10,000,000 secured by a dwelling or residential real estate; and</text> </level> <level label="iv"> <text>$250,000, if the applicant or licensee, in the 12 months prior to the license application or the renewal application, lent in the aggregate more than $10,000,000 secured by a dwelling or residential real estate.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Subject to paragraphs (2), (3), and (4) of this subsection, the minimum net worth requirements under subsection (a) of this section may be satisfied by the applicant or licensee having:</text> <level label="i"> <text>Cash on deposit with a bank or depository institution;</text> </level> <level label="ii"> <text>A working capital line of credit from a bank or depository institution;</text> </level> <level label="iii"> <text>An irrevocable letter of credit from a bank or depository institution;</text> </level> <level label="iv"> <text>Other assets; or</text> </level> <level label="v"> <text>A combination of cash, a working capital line of credit, an irrevocable letter of credit, or other assets.</text> </level> </level> <level label="2"> <text>If cash is used toward satisfying the minimum net worth requirements under subsection (a) of this section, the applicant or licensee shall submit to the Commissioner a bank letter verifying:</text> <level label="i"> <text>The account balance;</text> </level> <level label="ii"> <text>The type of account in which the funds are held; and</text> </level> <level label="iii"> <text>That the funds are not encumbered or hypothecated in any way.</text> </level> </level> <level label="3"> <level label="i"> <text>If a working capital line of credit is used toward satisfying the minimum net worth requirements under subsection (a) of this section, the applicant or licensee shall submit to the Commissioner a copy of the line of credit agreement and the promissory note, and, subject to subparagraphs (ii) and (iii) of this paragraph, a reservation of the working capital line of credit in favor of the Commissioner by the bank or depository institution.</text> </level> <level label="ii"> <text>A working capital line of credit may not be used toward satisfying more than 75% of the minimum net worth requirements under subsection (a) of this section.</text> </level> <level label="iii"> <text>A working capital line of credit may not be used toward satisfying the minimum net worth requirements under subsection (a)(2) and (3) of this section.</text> </level> </level> <level label="4"> <level label="i"> <text>If an irrevocable letter of credit is used toward satisfying the minimum net worth requirements under subsection (a) of this section, the applicant or licensee shall submit to the Commissioner the original irrevocable letter of credit.</text> </level> <level label="ii"> <text>An irrevocable letter of credit may not:</text> <level label="1"> <text>Terminate prior to the expiration of a license; or</text> </level> <level label="2"> <text>Be modified or revoked without the prior written consent of the Commissioner.</text> </level> </level> </level> </level> <level label="c"> <text>A licensee shall provide to the Commissioner proof of satisfying minimum net worth requirements under subsection (a) of this section within 90 days after the last day of the licensee’s most recent fiscal year.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-509" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>When an applicant for a license files the application and bond and pays the fees required by § 11-507 of this subtitle, the Commissioner shall investigate to determine if the applicant meets the requirements of § 11-506 of this subtitle.</text> </level> <level label="b"> <text>The Commissioner shall approve or deny each application for a license within 60 days after the date when the application and bond are filed and the fees are paid.</text> </level> <level label="c"> <text>The Commissioner shall issue a license to any applicant who meets the requirements of this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-510" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>If an applicant does not meet the requirements of this subtitle, the Commissioner shall:</text> <level label="1"> <text>Immediately notify the applicant in writing of this fact;</text> </level> <level label="2"> <text>Return the bond filed under § 11-508 of this subtitle;</text> </level> <level label="3"> <text>Refund the license fee; and</text> </level> <level label="4"> <text>Keep the investigation fee.</text> </level> </level> <level label="b"> <text>Within 30 days after the Commissioner denies an application, the Commissioner shall:</text> <level label="1"> <text>File in the Commissioner’s office a written decision containing the findings and conclusions on which the denial was based;</text> </level> <level label="2"> <text>Send a copy of the decision to the applicant; and</text> </level> <level label="3"> <text>Advise the applicant by certified mail of the applicant’s right to a hearing to be held in accordance with the Administrative Procedure Act.</text> </level> </level> <level label="c"> <level label="1"> <text>An applicant who seeks a hearing on a license application denial shall file a written request for a hearing within 45 days following receipt of the advice to the applicant of the applicant’s right to a hearing.</text> </level> <level label="2"> <text>A hearing date established in response to the filing of a notice under this subsection may be postponed only once for a period of up to 30 days after the initial hearing date.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-511" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>Subject to any regulations the Commissioner adopts in connection with the transition to NMLS, an initial license term shall:</text> <level label="1"> <text>Begin on the day the license is issued; and</text> </level> <level label="2"> <text>Expire on December 31 of the year:</text> <level label="i"> <text>The license is issued, if the license is issued before November 1; or</text> </level> <level label="ii"> <text>Succeeding the year that the license is issued, if the license is issued on or after November 1.</text> </level> </level> </level> <level label="b"> <text>At least 60 days before its expiration, a license may be renewed if the licensee:</text> <level label="1"> <text>Otherwise is entitled to be licensed;</text> </level> <level label="2"> <text>Pays to the Commissioner a nonrefundable renewal fee set by the Commissioner; and</text> </level> <level label="3"> <text>Submits to the Commissioner:</text> <level label="i"> <text>A renewal application on the form that the Commissioner requires; and</text> </level> <level label="ii"> <text>Satisfactory evidence of compliance with any continuing education requirements set by regulations adopted by the Commissioner.</text> </level> </level> </level> <level label="c"> <text>Subject to any regulations the Commissioner adopts in connection with the transition to NMLS, a renewal term shall:</text> <level label="1"> <text>Be for a period of 1 year;</text> </level> <level label="2"> <text>Begin on January 1 of each year after the initial term; and</text> </level> <level label="3"> <text>Expire on December 31 of the year the renewal term begins.</text> </level> </level> <level label="d"> <text>In addition to the license renewal fee required under subsection (b)(2) of this section, an applicant for a license renewal shall pay to NMLS any fees that NMLS imposes in connection with the renewal application.</text> </level> <level label="e"> <text>If a license is surrendered voluntarily, or is suspended or revoked, the Commissioner may not refund any part of the license fee regardless of the time remaining in the license term.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-511.1" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>By July 1, 2000, the Commissioner shall adopt regulations that set continuing education requirements as a condition to the renewal of licenses under this subtitle.</text> </level> <level label="b"> <text>Any continuing education requirements established by the Commissioner under this section shall apply to the first renewal of a license.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-512" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>A licensee may not add, delete, or modify a location required to be listed in NMLS under § 11–505(f)(2) or (3) of this subtitle unless:</text> <level label="1"> <text>The licensee provides to the Commissioner, through NMLS and in accordance with any regulations the Commissioner adopts, notice of the addition, deletion, or modification;</text> </level> <level label="2"> <text>The addition, deletion, or modification of the location is recorded with the information associated with the licensee’s license in NMLS; and</text> </level> <level label="3"> <text>The addition, deletion, or modification of the location otherwise complies with this subtitle.</text> </level> </level> <level label="b"> <text>The licensee may not do business at a location required to be listed in NMLS by § 11–505(f)(2) or (3) of this subtitle until the location is recorded with the information associated with the licensee’s license in NMLS.</text> </level> <level label="c"> <level label="1"> <text>A licensee may not undergo a change in control unless the licensee:</text> <level label="i"> <text>Notifies the Commissioner through NMLS of the proposed change;</text> </level> <level label="ii"> <text>Makes a request through NMLS that the Commissioner approve the proposed change;</text> </level> <level label="iii"> <text>Provides any information the Commissioner may require under paragraph (3) of this subsection; and</text> </level> <level label="iv"> <text>Receives the approval of the Commissioner through NMLS.</text> </level> </level> <level label="2"> <text>For purposes of this subsection:</text> <level label="i"> <text>If the licensee is a corporation, “control” means direct or indirect ownership of, or the right to control, 25% or more of the voting shares of the licensee, or the ability to elect a majority of the directors or otherwise effect a change in policy; and</text> </level> <level label="ii"> <text>If the licensee is an entity other than a corporation, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of the licensee, whether through the ownership of voting securities, by contract, or otherwise.</text> </level> </level> <level label="3"> <text>Within 60 days after receiving a request for approval of a proposed change in control, the Commissioner may require the licensee to provide any information deemed necessary to determine whether a new application is required because of the proposed change in control.</text> </level> <level label="4"> <text>The Commissioner shall approve or deny a request for approval of a proposed change in control:</text> <level label="i"> <text>Within 60 days after the date the Commissioner receives the request; or</text> </level> <level label="ii"> <text>If the Commissioner requests information from the licensee under paragraph (3) of this subsection, within 60 days after the date the information is received by the Commissioner.</text> </level> </level> <level label="5"> <text>If the Commissioner does not approve or deny a request for approval of a proposed change in control as provided under paragraph (4) of this subsection, the request shall be deemed approved.</text> </level> </level> <level label="d"> <text>In addition to any sanctions which may be imposed under this subtitle by the Commissioner, a licensee who fails to provide in a timely manner the notice required under subsection (a)(1) or (c)(1) of this section shall:</text> <level label="1"> <text>For each such failure pay to the Commissioner a surcharge in the amount of $500; and</text> </level> <level label="2"> <text>For a licensee who fails to provide in a timely manner the notice required under subsection (c)(1) of this section, file with the Commissioner an application for a new license, together with all applicable application and investigation fees.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-512.1" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>Each licensee shall conspicuously post, in 48 point or larger type, at each licensed location the following information:</text> <level label="1"> <text>The licensee’s unique identifier; and</text> </level> <level label="2"> <text>A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.</text> </level> </level> <level label="b"> <text>Each licensee shall conspicuously display the following information on the licensee’s website, any software application accessible to the public and used to engage in business as a mortgage lender, and profile page within each social media platform the licensee uses:</text> <level label="1"> <text>The licensee’s unique identifier; and</text> </level> <level label="2"> <text>A link to the NMLS Consumer Access website.</text> </level> </level> <level label="c"> <text>A licensee is not required to post the information required in subsection (a) of this section at a licensed location if the licensee does not regularly grant access to that licensed location to members of the general public.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-513" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>Each licensee shall keep and make available to the Commissioner at the licensee’s licensed location any books and records that the Commissioner, by rule or regulation, requires to enable the Commissioner to enforce:</text> <level label="1"> <text>This subtitle;</text> </level> <level label="2"> <text>Any rule or regulation adopted under this subtitle; and</text> </level> <level label="3"> <text>Any other provision regulating the application, making, brokering, or servicing of mortgage loans under Titles 12 through 14 of the Commercial Law Article.</text> </level> </level> <level label="b"> <text>Subject to approval by the Commissioner, nothing in this section is to be construed to prohibit a licensee from maintaining duplicate records or electronic equivalents at the licensee’s licensed location.</text> </level> <level label="c"> <text>Notwithstanding subsection (a) of this section, on approval of the Commissioner, a licensee need not keep at the licensee’s licensed location any books and records otherwise required by the Commissioner under subsection (a) of this section if the licensee:</text> <level label="1"> <text>Makes the books and records available to the Commissioner at the licensee’s licensed location within 5 business days after the Commissioner’s official request; and</text> </level> <level label="2"> <text>Retains the records for at least 61 months in a storage facility disclosed to the Commissioner.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-513.1" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>A licensee shall submit to NMLS a call report once each quarter on the date, in the form, and containing the information required by NMLS.</text> </level> <level label="b"> <text>A mortgage lender who is exempt from licensing under this subtitle shall submit the call reports required under subsection (a) of this section on behalf of its mortgage loan originators licensed under Subtitle 6 of this title.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-514" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>A licensee may surrender a license through NMLS in accordance with the process that the Commissioner requires.</text> </level> <level label="b"> <text>The surrender of a license does not affect any civil or criminal liability of a licensee for acts committed before the license was surrendered.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-515" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <level label="1"> <text>The Commissioner shall examine the business of each licensee:</text> <level label="i"> <text>In accordance with a schedule established by the Commissioner; and</text> </level> <level label="ii"> <text>At any other time that the Commissioner reasonably considers necessary.</text> </level> </level> <level label="2"> <text>The schedule established by the Commissioner under paragraph (1)(i) of this subsection shall:</text> <level label="i"> <text>Take into account:</text> <level label="1"> <text>The length of time the licensee has been engaged in business as a mortgage lender;</text> </level> <level label="2"> <text>Any prior violations by the licensee of the mortgage lending law or regulations;</text> </level> <level label="3"> <text>The nature and number of any complaints made against the licensee; and</text> </level> <level label="4"> <text>The result of findings from any prior examination of the licensee; and</text> </level> </level> <level label="ii"> <text>Provide that:</text> <level label="1"> <text>New licensees shall be examined within 18 months after the date the license is issued; and</text> </level> <level label="2"> <text>Each licensee shall be examined at least once during any 60–month period.</text> </level> </level> </level> </level> <level label="b"> <level label="1"> <text>Any person aggrieved by the conduct of a licensee under this subtitle in connection with a mortgage loan may file a written complaint with the Commissioner who shall investigate the complaint.</text> </level> <level label="2"> <text>The Commissioner may make any other investigation of any person if the Commissioner has reasonable cause to believe that the person has violated any provision of this subtitle, of any regulation adopted under this subtitle, or of any other law regulating mortgage loan lending in the State.</text> </level> </level> <level label="c"> <text>A licensee shall pay to the Commissioner a per–day fee set by the Commissioner for each of the Commissioner’s employees engaged in:</text> <level label="1"> <text>An examination required under subsection (a)(1) of this section; and</text> </level> <level label="2"> <text>Any other examination or investigation conducted under this section that the Commissioner reasonably considers necessary.</text> </level> </level> <level label="d"> <text>In connection with an examination or investigation made under this section, the Commissioner may:</text> <level label="1"> <text>Examine the books and records of any licensee or of any other person who the Commissioner believes has violated any provision of this subtitle, or any rule or regulation adopted under this subtitle, or of any other law regulating mortgage loan lending in the State;</text> </level> <level label="2"> <text>Subpoena documents or other evidence; and</text> </level> <level label="3"> <text>Summon and examine under oath any person whose testimony the Commissioner requires.</text> </level> </level> <level label="e"> <level label="1"> <text>If any person fails to comply with a subpoena or summons of the Commissioner under this subtitle or to testify concerning any matter about which the person may be interrogated under this subtitle, the Commissioner may file a petition for enforcement with the circuit court for any county.</text> </level> <level label="2"> <text>On petition by the Commissioner, the court may order the person to attend and testify or produce evidence.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-516" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>If the Commissioner finds that the conduct of any other business conceals a violation or evasion of this subtitle or of any rule or regulation adopted under this subtitle, or of any law regulating mortgage loan lending in the State, the Commissioner may issue a written order to a licensee to:</text> <level label="1"> <text>Stop doing business at any place in which the other business is conducted or solicited; or</text> </level> <level label="2"> <text>Stop doing business in association or conjunction with the other business.</text> </level> </level> <level label="b"> <text>A licensee who violates an order of the Commissioner issued under this section shall be subject to the penalties provided by § 11-517 of this subtitle.</text> </level> <level label="c"> <text>The Commissioner may file a petition in the circuit court for any county seeking enforcement of an order under this section.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-517" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>Subject to the hearing provisions of § 11-518 of this subtitle, the Commissioner may suspend or revoke the license of any licensee if the licensee or any owner, director, officer, member, partner, stockholder, employee, or agent of the licensee:</text> <level label="1"> <text>Makes any material misstatement in an application for a license;</text> </level> <level label="2"> <text>Is convicted under the laws of the United States or of any state of:</text> <level label="i"> <text>A felony; or</text> </level> <level label="ii"> <text>A misdemeanor that is directly related to the fitness and qualification of the person to engage in the mortgage lending business;</text> </level> </level> <level label="3"> <text>In connection with any mortgage loan or loan application transaction:</text> <level label="i"> <text>Commits any fraud;</text> </level> <level label="ii"> <text>Engages in any illegal or dishonest activities; or</text> </level> <level label="iii"> <text>Misrepresents or fails to disclose any material facts to anyone entitled to that information;</text> </level> </level> <level label="4"> <text>Violates any provision of this subtitle or any rule or regulation adopted under it or any other law regulating mortgage loan lending in the State; or</text> </level> <level label="5"> <text>Otherwise demonstrates unworthiness, bad faith, dishonesty, or any other quality that indicates that the business of the licensee has not been or will not be conducted honestly, fairly, equitably, and efficiently.</text> </level> </level> <level label="b"> <text>In determining whether the license of a licensee should be suspended or revoked for a reason described in subsection (a)(2) of this section, the Commissioner shall consider:</text> <level label="1"> <text>The nature of the crime;</text> </level> <level label="2"> <text>The relationship of the crime to the activities authorized by the license;</text> </level> <level label="3"> <text>With respect to a felony, the relevance of the conviction to the fitness and qualification of the licensee to engage in the mortgage lending business;</text> </level> <level label="4"> <text>The length of time since the conviction; and</text> </level> <level label="5"> <text>The behavior and activities of the licensee since the conviction.</text> </level> </level> <level label="c"> <level label="1"> <text>The Commissioner may enforce the provisions of this subtitle, regulations adopted under § 11–503 of this subtitle, and the applicable provisions of Title 12 of the Commercial Law Article by:</text> <level label="i"> <text>Issuing an order:</text> <level label="1"> <text>To cease and desist from the violation and any further similar violations; and</text> </level> <level label="2"> <text>Requiring the violator to take affirmative action to correct the violation including the restitution of money or property to any person aggrieved by the violation; and</text> </level> </level> <level label="ii"> <text>Imposing a civil penalty not exceeding $10,000 for each violation.</text> </level> </level> <level label="2"> <text>If a violator fails to comply with an order issued under paragraph (1)(i) of this subsection, the Commissioner may impose a civil penalty not exceeding $25,000 for each violation from which the violator failed to cease and desist or for which the violator failed to take affirmative action to correct.</text> </level> </level> <level label="d"> <text>The Commissioner may file a petition in the circuit court for any county seeking enforcement of an order issued under this section.</text> </level> <level label="e"> <text>In determining the amount of financial penalty to be imposed under subsection (c) of this section, the Commissioner shall consider:</text> <level label="1"> <text>The seriousness of the violation;</text> </level> <level label="2"> <text>The good faith of the violator;</text> </level> <level label="3"> <text>The violator’s history of previous violations;</text> </level> <level label="4"> <text>The deleterious effect of the violation on the public and mortgage industry;</text> </level> <level label="5"> <text>The assets of the violator; and</text> </level> <level label="6"> <text>Any other factors relevant to the determination of the financial penalty.</text> </level> </level> <level label="f"> <text>The employment of a mortgage originator licensed under Subtitle 6 of this title by a mortgage lender does not relieve the mortgage lender of a responsibility under this subtitle, a rule or regulation adopted under this subtitle, or a law governing mortgage lending in the State.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-518" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>Before the Commissioner takes any action under § 11-516 or § 11-517 of this subtitle, the Commissioner shall give the licensee an opportunity for a hearing.</text> </level> <level label="b"> <text>Notice of the hearing shall be given and the hearing shall be held in accordance with the Administrative Procedure Act.</text> </level> <level label="c"> <text>The hearing notice to the licensee shall be sent by certified mail, return receipt requested, to the principal place of business of the licensee at least 30 days before the hearing.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-519" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <text>The Commissioner may reinstate a suspended license or issue a new license to a person whose license has been revoked if, after investigation, the Commissioner is satisfied that the conditions that were the cause for the suspension or revocation have been corrected and are unlikely to recur.</text> </section> <section article="gfi" article_name="Financial Institutions" number="11-520" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <text>A mortgage lender may not do business under any trade name that misrepresents or tends to misrepresent that the mortgage lender is:</text> <level label="1"> <text>A bank, trust company, or savings bank;</text> </level> <level label="2"> <text>A savings and loan association;</text> </level> <level label="3"> <text>A credit union; or</text> </level> <level label="4"> <text>An insurance company.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-521" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>A mortgage lender shall require a borrower to provide the mortgage lender with independent evidence of the commercial purpose of the loan where the loan is:</text> <level label="1"> <text>Secured, in whole or in part, by any interest in a dwelling or residential real estate in Maryland; and</text> </level> <level label="2"> <text>In excess of $75,000.</text> </level> </level> <level label="b"> <text>Other than the requirements of subsection (a) of this section, a mortgage lender is not required to make an independent investigation to obtain independent evidence of the commercial purpose.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-522" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <level label="1"> <text>This subsection applies only to a conventional home mortgage loan that is not already required by law or regulation by the State or federal government to be assumable in connection with the granting of absolute divorce.</text> </level> <level label="2"> <text>A mortgage lender or a mortgage lending business in the State shall include in any conventional home mortgage loan a provision authorizing any of the existing borrowers to purchase the property interest of another borrower on the loan by assuming the seller’s portion of the mortgage if:</text> <level label="i"> <text>The assumption is in connection with the granting of a decree of absolute divorce; and</text> </level> <level label="ii"> <text>The mortgage lender or mortgage lending business determines that the assuming borrower qualifies for the loan.</text> </level> </level> </level> <level label="b"> <text>A mortgage lender or a mortgage lending business in the State shall disclose an assumption provision in any conventional home mortgage loan in writing to a loan applicant before the completion of the loan application.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-523" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <level label="a"> <text>Any person who willfully violates any provision of this subtitle or any rule or regulation adopted under it is guilty of a felony and on conviction is subject to a fine not exceeding $50,000 or imprisonment not exceeding 10 years or both.</text> </level> <level label="b"> <text>Any unlicensed person who is not exempt from licensing under this subtitle who makes or assists a borrower in obtaining a mortgage loan in violation of this subtitle may collect only the principal amount of the loan and may not collect any interest, costs, finder’s fees, broker fees, or other charges with respect to the loan.</text> </level> <level label="c"> <text>Any mortgage lender or employee or agent of a mortgage lender who willfully misappropriates or intentionally and fraudulently converts to the mortgage lender’s or to the mortgage lender’s employee’s or agent’s own use money in excess of $300 rightfully belonging to a borrower, or who otherwise commits any fraudulent act in the course of engaging in the mortgage lending business is guilty of a felony and on conviction is subject to a fine not to exceed $100,000 or imprisonment not exceeding 15 years or both.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-524" title_number="11" title_name="Consumer Credit" subtitle_number="5" subtitle_name="Maryland Mortgage Lender Law"> <text>This subtitle may be cited as the Maryland Mortgage Lender Law.</text> </section> <section article="gfi" article_name="Financial Institutions" number="11-601" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Borrower” has the meaning stated in § 11–501 of this title.</text> </level> <level label="c"> <text>“Clerical or support duties” includes the following activities relating to the processing or underwriting of a mortgage loan when performed subsequent to the receipt of a loan application:</text> <level label="1"> <text>The receipt, collection, distribution, and analysis of information usual and customary for the processing or underwriting of a mortgage loan; and</text> </level> <level label="2"> <text>Communication with a consumer to obtain information necessary for the processing or underwriting of a mortgage loan, to the extent that the communication does not include offering or negotiating mortgage loan rates or terms, or counseling consumers about mortgage loan rates or terms.</text> </level> </level> <level label="d"> <level label="1"> <text>“Depository institution” has the meaning stated in the Federal Deposit Insurance Act, 12 U.S.C. § 1813(c).</text> </level> <level label="2"> <text>“Depository institution” includes credit unions.</text> </level> </level> <level label="e"> <text>“Federal banking agencies’’ means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the National Credit Union Administration, and the Federal Deposit Insurance Corporation.</text> </level> <level label="f"> <text>“Fund” means the Non–Depository Special Fund established under § 2–120 of this article.</text> </level> <level label="g"> <text>“Immediate family member” means a spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild, and stepsibling.</text> </level> <level label="h"> <text>“Independent contractor” means a person whose compensation is paid without a deduction for federal or State income tax.</text> </level> <level label="i"> <text>“Individual” means a natural person.</text> </level> <level label="j"> <text>“Individual loan servicer” means an individual who on behalf of a note holder or mortgage loan servicer:</text> <level label="1"> <text>Collects or receives payments, including payments of principal, interest, escrow amounts, and other amounts due on existing mortgage loan obligations owed to the note holder or mortgage loan servicer, at a time when the borrower is in default, or in reasonably foreseeable likelihood of default; and</text> </level> <level label="2"> <text>Working with the borrower and the note holder or mortgage loan servicer, collects data and makes decisions to modify, either temporarily or permanently, the terms of the mortgage loan obligations described in item (1) of this subsection or to proceed with collection efforts through foreclosure or other processes.</text> </level> </level> <level label="k"> <text>“License” means a license issued in any form by the Commissioner under this subtitle to engage in the business of a mortgage loan originator, including as provided for through NMLS.</text> </level> <level label="l"> <text>“Licensee” means an individual licensed under this subtitle to engage in the business of a mortgage loan originator.</text> </level> <level label="m"> <text>“Loan application” has the meaning stated in § 11–501 of this title.</text> </level> <level label="m–1"> <text>“Mobile home” has the meaning stated in § 11–501 of this title.</text> </level> <level label="n"> <text>“Mortgage lender” means a person that is licensed as a mortgage lender under Subtitle 5 of this title.</text> </level> <level label="o"> <text>“Mortgage lending business” has the meaning stated in § 11–501 of this title.</text> </level> <level label="p"> <text>“Mortgage loan” has the meaning stated in § 11–501 of this title.</text> </level> <level label="q"> <level label="1"> <text>“Mortgage loan originator” means an individual who for compensation or gain, or in the expectation of compensation or gain:</text> <level label="i"> <text>Takes a loan application; or</text> </level> <level label="ii"> <text>Offers or negotiates terms of a mortgage loan.</text> </level> </level> <level label="2"> <text>“Mortgage loan originator” does not include an individual who:</text> <level label="i"> <text>Acts solely as a mortgage loan processor or underwriter;</text> </level> <level label="ii"> <text>Performs only real estate brokerage activities and is licensed in accordance with Title 17 of the Business Occupations and Professions Article, unless the individual is compensated by a mortgage lender, mortgage broker, or other mortgage loan originator or by any agent of a mortgage lender, mortgage broker, or other mortgage loan originator;</text> </level> <level label="iii"> <text>Is involved solely in extensions of credit relating to timeshare plans, as that term is defined in 11 U.S.C. § 101(53D); or</text> </level> <level label="iv"> <text>Is a retailer of mobile homes or an employee of the retailer if the retailer or employee, as applicable, does not receive, directly or indirectly, compensation or gain for engaging in activities described in paragraph (1) of this subsection that is in excess of compensation or gain received in a comparable cash transaction.</text> </level> </level> </level> <level label="r"> <level label="1"> <text>“Mortgage loan processor or underwriter” means an individual who performs clerical or support duties as an employee of, at the direction of, and subject to the supervision and instruction of a person licensed, or exempt from licensing, under Title 5 of this article.</text> </level> <level label="2"> <text>“Mortgage loan processor or underwriter” does not include an individual who:</text> <level label="i"> <text>Represents to the public, through advertising or other means of communication including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual can or will perform any of the activities of a mortgage loan originator; or</text> </level> <level label="ii"> <text>Performs mortgage loan processing or underwriting activities as an independent contractor.</text> </level> </level> </level> <level label="s"> <text>“Nontraditional mortgage product” means any mortgage product other than a 30–year fixed rate mortgage loan.</text> </level> <level label="t"> <text>“Person” has the meaning stated in § 11–501 of this title.</text> </level> <level label="u"> <text>‘‘Real estate brokerage activity’’ means any activity for which a license is required under Title 17 of the Business Occupations and Professions Article.</text> </level> <level label="v"> <text>‘‘Registered mortgage loan originator’’ means any individual who:</text> <level label="1"> <text>Is a mortgage loan originator;</text> </level> <level label="2"> <text>Is an employee of:</text> <level label="i"> <text>A depository institution;</text> </level> <level label="ii"> <text>A subsidiary that is:</text> <level label="1"> <text>Owned and controlled by a depository institution; and</text> </level> <level label="2"> <text>Regulated by a federal banking agency; or</text> </level> </level> <level label="iii"> <text>An institution regulated by the Farm Credit Administration; and</text> </level> </level> <level label="3"> <text>Is registered with, and maintains a unique identifier through, NMLS.</text> </level> </level> <level label="w"> <text>“Residential real estate” has the meaning stated in § 11–501 of this title.</text> </level> <level label="x"> <text>“Unique identifier” means a number or other identifier assigned by NMLS.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-602" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <level label="1"> <text>The licensing provisions of this subtitle do not apply to independent contractors.</text> </level> <level label="2"> <text>Independent contractors are subject to the licensing provisions of Subtitle 5 of this title unless exempt from licensing under that subtitle.</text> </level> </level> <level label="b"> <text>Unless exempted from this subtitle under subsection (d) of this section, an individual may not engage in the business of a mortgage loan originator unless the individual holds a valid license issued under this subtitle.</text> </level> <level label="c"> <text>Each licensee shall obtain and maintain a valid unique identifier issued by NMLS:</text> <level label="1"> <text>On obtaining an initial or renewal license on or after July 1, 2009; or</text> </level> <level label="2"> <text>If the Commissioner has not joined NMLS as of July 1, 2009, on or after the date that the Commissioner joins, as instructed by the Commissioner by notice to the licensee.</text> </level> </level> <level label="d"> <text>The following individuals are exempt from this subtitle:</text> <level label="1"> <text>A registered mortgage loan originator, when acting for an entity described in § 11–601(w) of this subtitle;</text> </level> <level label="2"> <text>An individual who offers or negotiates the terms of a mortgage loan with or on behalf of an immediate family member of the individual;</text> </level> <level label="3"> <text>An individual who offers or negotiates the terms of a mortgage loan secured by a dwelling that served as the individual’s residence;</text> </level> <level label="4"> <text>A licensed attorney who negotiates the terms of a mortgage loan on behalf of a client as an ancillary matter to the attorney’s representation of the client, unless the attorney is compensated by a mortgage lender, a mortgage broker, or a mortgage loan originator, or by an agent of a mortgage lender, mortgage broker, or mortgage loan originator; and</text> </level> <level label="5"> <text>Subject to subsection (e) of this section, an individual loan servicer.</text> </level> </level> <level label="e"> <text>The exemption under subsection (d)(5) of this section is subject to modification by regulations that are adopted by the Commissioner and consistent with any applicable written interpretations of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 by the United States Department of Housing and Urban Development presented through commentaries, guidelines, rules, regulations, or interpretive letters.</text> </level> <level label="f"> <text>The Commissioner may adopt regulations to carry out this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-603" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>A license issued under this subtitle authorizes the licensee to act as a mortgage loan originator only when acting within the scope of employment with:</text> <level label="1"> <text>A mortgage lender; or</text> </level> <level label="2"> <text>A person who is exempt from licensing as a mortgage lender.</text> </level> </level> <level label="b"> <text>A licensee may not:</text> <level label="1"> <text>Maintain more than one license under this subtitle; or</text> </level> <level label="2"> <text>Be employed by more than one mortgage lender or person who is exempt from licensing as a mortgage lender.</text> </level> </level> <level label="c"> <level label="1"> <level label="i"> <text>Each license provided for through NMLS shall include the following information:</text> <level label="1"> <text>The name of the licensee;</text> </level> <level label="2"> <text>The name of the licensee’s employer; and</text> </level> <level label="3"> <text>The unique identifier of the licensee.</text> </level> </level> <level label="ii"> <text>The unique identifier of the licensee shall constitute the license number for the license.</text> </level> </level> <level label="2"> <text>An individual may not act as a mortgage loan originator under a name or for an employer that is different from the name and employer that appear on the license unless the licensee:</text> <level label="i"> <text>Notifies the Commissioner, in the form and in accordance with the process that the Commissioner requires, in advance of a change in the licensee’s name or the licensee’s employer;</text> </level> <level label="ii"> <text>Pays to the Commissioner a license amendment fee set by the Commissioner for each notice provided under this paragraph; and</text> </level> <level label="iii"> <text>In the case of a new employer, amends the sponsorship information on NMLS by submitting the amendment, in the form required by the Commissioner, to indicate that the licensee is an employee of the new employer.</text> </level> </level> <level label="3"> <text>If a licensee ceases to be employed by a licensed mortgage lender or by a person exempt from licensing as a mortgage lender, the licensee shall notify the Commissioner within 10 business days, and the license shall be placed into nonactive status through NMLS.</text> </level> <level label="4"> <text>During the time that a license is in nonactive status, it is a violation of this subtitle for the licensee to engage in any activity for which a license is required under this subtitle.</text> </level> <level label="5"> <text>The license shall remain in nonactive status until the licensee:</text> <level label="i"> <text>Notifies the Commissioner, in the form and in accordance with the process that the Commissioner requires, that the licensee has obtained employment with a licensed mortgage lender or with a person exempt from licensing as a mortgage lender; and</text> </level> <level label="ii"> <text>Has complied with the requirements set forth in paragraph (2) of this subsection.</text> </level> </level> </level> <level label="d"> <text>A license may be issued under this subtitle to an individual who is not employed by a licensed mortgage lender or a person exempt from licensing as a mortgage lender provided the license is placed into and remains in nonactive status until the licensee:</text> <level label="1"> <text>Notifies the Commissioner, in the form and in accordance with the process that the Commissioner requires, that the licensee has obtained employment with a licensed mortgage lender or with a person exempt from licensing as a mortgage lender; and</text> </level> <level label="2"> <text>Has complied with the requirements set forth in subsection (c)(2) of this section.</text> </level> </level> <level label="e"> <text>A license may be issued under this subtitle to an individual who is employed by a mortgage lender, or a person exempt from licensing as a mortgage lender, that has its principal office located outside the State if the mortgage lender or the person exempt from licensing as a mortgage lender maintains a resident agent within the State.</text> </level> <level label="f"> <text>This section does not apply to an affiliated insurance producer–mortgage loan originator licensed under § 11–603.1 of this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-603.1" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>In this section, “affiliated insurance producer–mortgage loan originator” means an individual who:</text> <level label="1"> <text>Originates mortgage loans made by:</text> <level label="i"> <text>A financial institution that is:</text> <level label="1"> <text>Described in § 11–502(b)(1) of this title; and</text> </level> <level label="2"> <text>Approved by the Commissioner under subsection (b) of this section; or</text> </level> </level> <level label="ii"> <text>A mortgage lender that is approved by the Commissioner under subsection (c) of this section;</text> </level> </level> <level label="2"> <text>Is a licensed insurance producer in good standing under § 10–103 of the Insurance Article; and</text> </level> <level label="3"> <text>Holds an appointment as an insurance producer for an insurer that controls, is controlled by, or is under common control with:</text> <level label="i"> <text>A financial institution or a mortgage lender described in item (1) of this subsection; or</text> </level> <level label="ii"> <text>A mortgage lender that:</text> <level label="1"> <text>Is approved by the Commissioner under subsection (d) of this section;</text> </level> <level label="2"> <text>Originates loans made by a financial institution or a mortgage lender described in item (1) of this subsection; and</text> </level> <level label="3"> <text>Is acting as a mortgage broker, as defined in § 11–501 of this title.</text> </level> </level> </level> </level> <level label="b"> <text>The Commissioner shall approve a financial institution described in subsection (a)(1)(i) of this section based on the following criteria:</text> <level label="1"> <text>The financial institution is in good standing with its primary state or federal regulator; and</text> </level> <level label="2"> <text>The financial institution is in material compliance with applicable state and federal law.</text> </level> </level> <level label="c"> <text>The Commissioner shall approve a mortgage lender described in subsection (a)(1)(ii) of this section based on the following criteria:</text> <level label="1"> <text>The mortgage lender is in good standing with the Commissioner and any other regulator to which it is subject; and</text> </level> <level label="2"> <text>The mortgage lender is in material compliance with applicable state and federal law.</text> </level> </level> <level label="d"> <text>The Commissioner shall approve a mortgage lender described in subsection (a)(3)(ii) of this section based on the following criteria:</text> <level label="1"> <text>The mortgage lender is in good standing with the Commissioner and any other regulator to which it is subject; and</text> </level> <level label="2"> <text>The mortgage lender is in material compliance with applicable state and federal law.</text> </level> </level> <level label="e"> <text>Approval by the Commissioner of a financial institution under subsection (b) of this section and a mortgage lender under subsection (c) or (d) of this section shall be in writing.</text> </level> <level label="f"> <level label="1"> <text>An application for a license under this section shall be in the form approved by the Commissioner.</text> </level> <level label="2"> <text>The application shall require the identification of:</text> <level label="i"> <text>A financial institution or a mortgage lender described in subsection (a)(1) of this section;</text> </level> <level label="ii"> <text>If applicable, a mortgage lender described in subsection (a)(3)(ii) of this section; and</text> </level> <level label="iii"> <text>The insurer with which the applicant holds an appointment.</text> </level> </level> <level label="3"> <text>An application for a license under this section shall be sponsored by:</text> <level label="i"> <text>A financial institution or a mortgage lender described in subsection (a)(1) of this section that is identified in the application; or</text> </level> <level label="ii"> <text>If a mortgage lender described in subsection (a)(3)(ii) of this section is identified in the application, the mortgage lender.</text> </level> </level> </level> <level label="g"> <level label="1"> <text>Notwithstanding §§ 11–602(a) and 11–603 of this subtitle, and subject to the provisions of this section, a license issued under this section authorizes the licensee to act as a mortgage loan originator only on behalf of a sponsor that is:</text> <level label="i"> <text>Identified in the licensee’s application; and</text> </level> <level label="ii"> <level label="1"> <text>A mortgage lender; or</text> </level> <level label="2"> <text>A person that is exempt from licensing as a mortgage lender.</text> </level> </level> </level> <level label="2"> <text>This section may not be construed to authorize sponsorship other than for the purpose described in paragraph (1) of this subsection.</text> </level> </level> <level label="h"> <text>An applicant for a license under this section and a licensee under this section shall comply with all other requirements for licensing as a mortgage loan originator under this subtitle.</text> </level> <level label="i"> <text>A licensee under this section shall limit the licensee’s activities to originating mortgage loans made by:</text> <level label="1"> <text>A financial institution approved by the Commissioner under subsection (b) of this section; or</text> </level> <level label="2"> <text>A mortgage lender approved by the Commissioner under subsection (c) of this section.</text> </level> </level> <level label="j"> <text>A financial institution or a mortgage lender that sponsors a licensee’s license application shall:</text> <level label="1"> <text>Supervise the licensee, including providing direction through written instructions or electronic means and by periodically examining the licensee’s books, records, and other aspects of the licensee’s business;</text> </level> <level label="2"> <text>Be held jointly and severally liable with the licensee for claims arising out of the licensee’s mortgage loan origination activities; and</text> </level> <level label="3"> <text>Meet, or cause the licensee to meet, the surety bond requirements under § 11–619(c) of this subtitle.</text> </level> </level> <level label="k"> <text>Except as provided in subsection (l) of this section, a licensee under this section may not:</text> <level label="1"> <text>Aid or assist a borrower to obtain a mortgage loan from:</text> <level label="i"> <text>A financial institution other than a financial institution identified in the licensee’s license application; or</text> </level> <level label="ii"> <text>A mortgage lender other than a mortgage lender identified in the licensee’s application;</text> </level> </level> <level label="2"> <text>Except for compensation based on the principal balance of a mortgage loan, be compensated by any person for mortgage loan origination activities on a basis that depends on the terms of the mortgage loan, including interest rate or fees;</text> </level> <level label="3"> <text>Receive a finder’s fee, as defined in § 12–801 of the Commercial Law Article;</text> </level> <level label="4"> <text>Handle borrower or other third party funds in connection with the origination or closing of a mortgage loan;</text> </level> <level label="5"> <text>Refer a borrower to any other licensee under Subtitle 5 of this title; or</text> </level> <level label="6"> <text>Make or service a mortgage loan.</text> </level> </level> <level label="l"> <text>A licensee under this section may forward a check to a financial institution or a mortgage lender identified in the licensee’s license application if the check is:</text> <level label="1"> <text>Made payable to the financial institution or the mortgage lender;</text> </level> <level label="2"> <text>From an applicant for a mortgage loan; and</text> </level> <level label="3"> <text>In connection with an application for a mortgage loan to cover costs for:</text> <level label="i"> <text>An appraisal;</text> </level> <level label="ii"> <text>A credit report; or</text> </level> <level label="iii"> <text>Processing the application.</text> </level> </level> </level> <level label="m"> <level label="1"> <text>An individual may not act as an affiliated insurance producer–mortgage loan originator unless the licensee:</text> <level label="i"> <text>Notifies the Commissioner, in the form and in accordance with the process that the Commissioner requires, in advance of a change in the licensee’s name or the licensee’s sponsor;</text> </level> <level label="ii"> <text>Pays to the Commissioner a license amendment fee set by the Commissioner for each notice provided under item (i) of this paragraph; and</text> </level> <level label="iii"> <text>In the case of a new sponsor, amends the sponsorship information on NMLS by submitting the amendment in the form required by the Commissioner to indicate that the licensee is sponsored by the new sponsor.</text> </level> </level> <level label="2"> <text>If a licensee ceases to be sponsored by any financial institution approved by the Commissioner under subsection (b) of this section or any mortgage lender approved by the Commissioner under subsection (c) or (d) of this section, the licensee shall notify the Commissioner within 10 business days, and the license shall be placed into nonactive status through NMLS.</text> </level> <level label="3"> <text>During the time that a license is in nonactive status, it is a violation of this subtitle for the licensee to engage in any activity for which a license is required under this subtitle.</text> </level> <level label="4"> <text>The license shall remain in nonactive status until the licensee:</text> <level label="i"> <text>Notifies the Commissioner, in the form and in accordance with the process that the Commissioner requires, that the licensee has obtained sponsorship from a financial institution that is approved by the Commissioner under subsection (b) of this section or a mortgage lender that is approved by the Commissioner under subsection (c) or (d) of this section; and</text> </level> <level label="ii"> <text>Has complied with the requirements set forth in paragraph (1) of this subsection.</text> </level> </level> </level> <level label="n"> <text>The Commissioner may issue a license under this subtitle to an individual who is not sponsored by a financial institution approved by the Commissioner under subsection (b) of this section or a mortgage lender approved by the Commissioner under subsection (c) or (d) of this section, provided that the license is placed into and remains in nonactive status until the licensee:</text> <level label="1"> <text>Notifies the Commissioner, in the form and in accordance with the process that the Commissioner requires, that the licensee has obtained sponsorship from:</text> <level label="i"> <text>A financial institution approved by the Commissioner under subsection (b) of this section; or</text> </level> <level label="ii"> <text>A mortgage lender approved by the Commissioner under subsection (c) or (d) of this section; and</text> </level> </level> <level label="2"> <text>Has complied with the requirements set forth in subsection (m)(1) of this section.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-604" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <level label="1"> <text>To apply for a license, an applicant shall:</text> <level label="i"> <text>Complete, sign, and submit to the Commissioner an application made under oath in the form, and in accordance with the process, that the Commissioner requires; and</text> </level> <level label="ii"> <text>Provide all information as requested by the Commissioner.</text> </level> </level> <level label="2"> <text>The applicant shall comply with all conditions and provisions of the application for a license.</text> </level> </level> <level label="b"> <text>With each application, the applicant shall pay to the Commissioner:</text> <level label="1"> <text>A nonrefundable investigation fee set by the Commissioner; and</text> </level> <level label="2"> <text>A nonrefundable license fee set by the Commissioner.</text> </level> </level> <level label="c"> <text>In addition to the license fee required under subsection (b)(2) of this section, an applicant for an initial license shall pay to the Nationwide Multistate Licensing System any fees that the Nationwide Multistate Licensing System imposes in connection with the application.</text> </level> <level label="d"> <text>In connection with an initial application for a license under this section and at any other time the Commissioner requests, an applicant or licensee shall provide to the Nationwide Multistate Licensing System information concerning the applicant’s identity, including:</text> <level label="1"> <text>Fingerprints for submission to the Federal Bureau of Investigation, and any other governmental agency or entity authorized to receive this information for a state, national, or international criminal history background check; and</text> </level> <level label="2"> <text>Personal history and experience in a form prescribed by the Nationwide Multistate Licensing System, including the submission of authorization for the Nationwide Multistate Licensing System and the Commissioner to obtain:</text> <level label="i"> <text>An independent credit report from a consumer reporting agency described in the federal Fair Credit Reporting Act, 15 U.S.C. § 1681a(p); and</text> </level> <level label="ii"> <text>Information related to any administrative, civil, or criminal findings by any governmental jurisdiction.</text> </level> </level> </level> <level label="e"> <text>To implement this subtitle, the Commissioner may use the Nationwide Multistate Licensing System as a channeling agent to request information from and distribute information to the Department of Justice, any other governmental agency with subject matter jurisdiction, and any other state licensing entity that has loan originators registered with the Nationwide Multistate Licensing System.</text> </level> <level label="f"> <text>An applicant or licensee who is required to provide fingerprints under subsection (d) of this section shall pay any processing or other fees required by the Federal Bureau of Investigation and the Nationwide Multistate Licensing System.</text> </level> <level label="g"> <text>The Commissioner may request from the Federal Bureau of Investigation or the Nationwide Multistate Licensing System, as applicable, for each applicant or licensee who is required to provide fingerprints under subsection (d) of this section:</text> <level label="1"> <level label="i"> <text>The state, national, or international criminal history records of the applicant or licensee; and</text> </level> <level label="ii"> <text>A printed statement listing any conviction or other disposition of, and any plea of guilty or nolo contendere to, any criminal charge;</text> </level> </level> <level label="2"> <level label="i"> <text>An update of the initial criminal history records check or criminal history background check of the applicant or licensee; and</text> </level> <level label="ii"> <text>A revised statement listing any conviction or other disposition of, and any plea of guilty or nolo contendere to, any criminal charge occurring after the date of the initial criminal history records check or criminal history background check; and</text> </level> </level> <level label="3"> <text>An acknowledged receipt of the application for a criminal history records check or criminal history background check of the applicant or licensee.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-605" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>The Commissioner may not issue a mortgage loan originator license unless the Commissioner makes, at a minimum, the following findings:</text> <level label="1"> <text>The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction;</text> </level> <level label="2"> <text>The applicant has not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court:</text> <level label="i"> <text>During the 7–year period immediately preceding the date of the application for licensing; or</text> </level> <level label="ii"> <text>At any time preceding the date of application, if the felony involved an act of fraud, dishonesty, a breach of trust, or money laundering;</text> </level> </level> <level label="3"> <text>The applicant has demonstrated financial responsibility, character, and general fitness sufficient to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly, and efficiently;</text> </level> <level label="4"> <text>The applicant has completed the prelicensing education requirement under § 11–606 of this subtitle and any prelicensing education requirements established by the Commissioner by regulation;</text> </level> <level label="5"> <text>The applicant has passed a test that meets the requirements established under § 11–606.1 of this subtitle and any prelicensing testing requirements established by the Commissioner by regulation; and</text> </level> <level label="6"> <text>The applicant has met the surety bond requirement under § 11–619 of this subtitle.</text> </level> </level> <level label="b"> <text>A conviction for which a pardon has been granted is not a conviction for purposes of subsection (a)(2) of this section.</text> </level> <level label="c"> <text>A determination that an individual does not meet the requirements for financial responsibility under subsection (a)(3) of this section may not be based solely on:</text> <level label="1"> <text>Debts arising from medical expenses, including judgments;</text> </level> <level label="2"> <text>Except for delinquent child support payments, debts, including judgments, arising from divorce proceedings or divorce settlements;</text> </level> <level label="3"> <text>Foreclosures on the applicant’s principal residence;</text> </level> <level label="4"> <text>The applicant’s credit score as reported by any consumer reporting agency, as defined in 15 U.S.C. § 1681a; or</text> </level> <level label="5"> <text>The applicant’s involvement in a bankruptcy proceeding under Title 11 of the United States Code.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-606" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>To qualify for an initial license, an applicant shall complete at least 20 hours of prelicensing education that shall include:</text> <level label="1"> <text>3 hours of instruction on federal law and regulations relating to mortgage origination;</text> </level> <level label="2"> <text>3 hours of instruction on ethics, including instruction on fraud, consumer protection, and fair lending issues; and</text> </level> <level label="3"> <text>2 hours of training related to lending standards and loan terms for nontraditional mortgage products.</text> </level> </level> <level label="b"> <level label="1"> <text>All prelicensing education courses shall be reviewed and approved by the Nationwide Multistate Licensing System.</text> </level> <level label="2"> <text>Review and approval of a prelicensing education course shall include review and approval of the course provider by the Nationwide Multistate Licensing System.</text> </level> </level> <level label="c"> <text>Prelicensing education may be offered in a classroom, online, or by any other means approved by the Nationwide Multistate Licensing System.</text> </level> <level label="d"> <text>An applicant’s successful completion in another state of the prelicensing education requirements approved by the Nationwide Multistate Licensing System, except prelicensing education requirements specific to that other state, shall be accepted by the Commissioner as credit toward completion of prelicensing education requirements in this State.</text> </level> <level label="e"> <text>This section does not preclude any prelicensing education course, as approved by the Nationwide Multistate Licensing System, that is provided by the employer of the applicant or an entity that is affiliated with the applicant by an agency contract, or any subsidiary or affiliate of the employer or entity.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-606.1" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>To qualify for an initial license, an applicant shall pass a qualified written test developed by the Nationwide Multistate Licensing System and administered by a test provider approved by the Nationwide Multistate Licensing System.</text> </level> <level label="b"> <text>A written test may not be treated as a qualified written test for purposes of subsection (a) of this section unless the test adequately measures the applicant’s knowledge and comprehension in appropriate subject areas, including:</text> <level label="1"> <text>Ethics;</text> </level> <level label="2"> <text>Federal law and regulations relating to mortgage origination;</text> </level> <level label="3"> <text>State law and regulations relating to mortgage origination; and</text> </level> <level label="4"> <text>Federal and State law and regulations relating to fraud, consumer protection, the nontraditional mortgage product marketplace, and fair lending issues.</text> </level> </level> <level label="c"> <text>To pass a qualified written test, an applicant must receive a test score of at least 75 percent.</text> </level> <level label="d"> <text>An applicant may take a test three times, provided that each subsequent test occurs at least 30 days after the preceding test.</text> </level> <level label="e"> <text>After failing three tests, an applicant shall wait at least 6 months before taking the test again.</text> </level> <level label="f"> <level label="1"> <text>A licensee who fails to renew and maintain a valid license for a period of 5 years or longer shall retake the test and achieve a passing grade as set forth in subsection (c) of this section before obtaining a new license.</text> </level> <level label="2"> <text>Calculation of the time period during which an individual is unlicensed under paragraph (1) of this subsection shall exclude any time during which the individual is a registered mortgage loan originator.</text> </level> </level> <level label="g"> <text>This section does not prohibit a test provider approved by the Nationwide Multistate Licensing System from providing a test at the location of the employer of the applicant or any subsidiary or affiliate of the employer of the applicant, or any entity with which the applicant holds an exclusive arrangement to conduct the business of a mortgage loan originator.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-607" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>When an applicant for a license files the application and pays the fees required by § 11–604 of this subtitle, the Commissioner shall conduct an investigation to determine if the applicant meets the requirements of § 11–605 of this subtitle.</text> </level> <level label="b"> <text>The Commissioner shall issue a license to an applicant who meets the requirements of § 11–605 of this subtitle.</text> </level> <level label="c"> <text>If the Commissioner notifies an applicant that the application is incomplete:</text> <level label="1"> <text>The Commissioner’s notice shall itemize the steps which the applicant must take to complete the application; and</text> </level> <level label="2"> <text>The application may not be approved until after the applicant supplies or completes all items and steps identified in the Commissioner’s notice.</text> </level> </level> <level label="d"> <text>The Commissioner may deny an application:</text> <level label="1"> <text>If the applicant fails to qualify for a license under this subtitle; or</text> </level> <level label="2"> <text>For any reason that a license may be revoked or suspended under this subtitle or a mortgage lender license may be suspended or revoked under § 11–517 of this title.</text> </level> </level> <level label="e"> <text>The Commissioner shall approve or deny an application within 60 days after the Commissioner receives a completed application.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-608" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>If the Commissioner denies an application, the Commissioner:</text> <level label="1"> <text>Within 10 days, shall notify the applicant, in writing, of the denial; and</text> </level> <level label="2"> <text>Shall keep the license fee and the investigation fee.</text> </level> </level> <level label="b"> <text>Within 30 days after the Commissioner denies an application, the Commissioner shall:</text> <level label="1"> <text>Issue a written decision containing the specific factual findings and conclusions of law on which the denial was based;</text> </level> <level label="2"> <text>Send a copy of the written decision by certified mail to the applicant; and</text> </level> <level label="3"> <text>Advise the applicant by certified mail of the applicant’s right to a hearing to be held in accordance with the Administrative Procedure Act.</text> </level> </level> <level label="c"> <text>An applicant who seeks a hearing on an application denial shall file with the Commissioner’s office a written request for a hearing within 45 days after receipt of the Commissioner’s written decision and notice of the applicant’s right to a hearing.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-609" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>Subject to any regulations the Commissioner adopts in connection with the transition to NMLS, an initial license term shall:</text> <level label="1"> <text>Begin on the first day the license is issued; and</text> </level> <level label="2"> <text>Expire on December 31 of the year:</text> <level label="i"> <text>In which the license is issued, if the license is issued before November 1; or</text> </level> <level label="ii"> <text>Succeeding the year in which the license is issued, if the license is issued on or after November 1.</text> </level> </level> </level> <level label="b"> <text>On or after November 1 of the year in which the license expires, the license may be renewed for an additional 1–year term, if the licensee:</text> <level label="1"> <text>Subject to subsections (d) and (e) of this section, meets the minimum standards for the issuance of a license and otherwise is entitled to be licensed;</text> </level> <level label="2"> <text>Pays to the Commissioner a renewal fee set by the Commissioner; and</text> </level> <level label="3"> <text>Submits to the Commissioner:</text> <level label="i"> <text>A renewal application on the form that the Commissioner requires; and</text> </level> <level label="ii"> <text>Satisfactory evidence of compliance with any continuing education requirements under this subtitle or set by regulations adopted by the Commissioner.</text> </level> </level> </level> <level label="c"> <text>In addition to the license renewal fee required under subsection (b)(2) of this section, an applicant for a license renewal shall pay to NMLS any fees that NMLS imposes in connection with the renewal application.</text> </level> <level label="d"> <text>Notwithstanding anything to the contrary in this section or § 11–605 of this subtitle, an applicant for renewal of a license who is duly licensed under this subtitle on July 1, 2009:</text> <level label="1"> <text>May comply with the following requirements for renewal of the license on or before December 31, 2010:</text> <level label="i"> <text>The fingerprinting and criminal history report requirement under § 11–604 of this subtitle;</text> </level> <level label="ii"> <text>The surety bond coverage requirement under § 11–619 of this subtitle; and</text> </level> <level label="iii"> <text>The prelicensing testing requirement under § 11–606.1 of this subtitle; and</text> </level> </level> <level label="2"> <text>Is deemed to have satisfied the prelicensing educational course requirement under § 11–606 of this subtitle if the applicant completed 20 hours of continuing education courses approved by the Commissioner within 5 years prior to the expiration date of the applicant’s current license.</text> </level> </level> <level label="e"> <level label="1"> <text>A licensee may surrender a license through NMLS in accordance with the process that the Commissioner requires.</text> </level> <level label="2"> <text>If a license is surrendered voluntarily or is suspended or revoked, the Commissioner may not refund any part of the license fee regardless of the time remaining in the license term.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-611" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <text>For fiscal year 2006 and each fiscal year thereafter, the Governor shall include in the annual budget bill an appropriation to the Office of Financial Regulation for the purpose of creating necessary positions to carry out this subtitle.</text> </section> <section article="gfi" article_name="Financial Institutions" number="11-612" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>Before applying for renewal of a license, a licensee shall complete at least 8 hours of continuing education, which shall include:</text> <level label="1"> <text>3 hours of instruction on federal law and regulations relating to mortgage origination;</text> </level> <level label="2"> <text>2 hours of instruction on ethics, including instruction on fraud, consumer protection, and fair lending issues; and</text> </level> <level label="3"> <text>2 hours of training related to lending standards for the nontraditional mortgage product marketplace.</text> </level> </level> <level label="b"> <level label="1"> <text>All continuing education courses shall be reviewed and approved by the Nationwide Multistate Licensing System.</text> </level> <level label="2"> <text>Review and approval of a continuing education course shall include review and approval of the course provider by the Nationwide Multistate Licensing System.</text> </level> </level> <level label="c"> <text>Continuing education may be offered in a classroom, online, or by any other means approved by the Nationwide Multistate Licensing System.</text> </level> <level label="d"> <text>A licensee:</text> <level label="1"> <text>Shall receive credit for a continuing education course only in the year in which the course is taken; and</text> </level> <level label="2"> <text>May not take the same continuing education course to meet the annual requirement for continuing education.</text> </level> </level> <level label="e"> <text>A licensee who teaches an approved continuing education course may receive credit for the licensee’s own annual continuing education requirement at the rate of 2 hours of credit for every 1 hour taught.</text> </level> <level label="f"> <text>A licensee’s successful completion in another state of the continuing education requirements approved by the Nationwide Multistate Licensing System, except continuing education requirements specific to that other state, shall be accepted by the Commissioner as credit towards completion of continuing education requirements in this State.</text> </level> <level label="g"> <text>This section does not preclude any continuing education course, as approved by the Nationwide Multistate Licensing System, that is provided by the employer of the mortgage loan originator or an entity that is affiliated with the mortgage loan originator by an agency contract, or any subsidiary or affiliate of the employer or entity.</text> </level> <level label="h"> <text>The Commissioner may adopt regulations to implement this section.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-612.1" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>The Commissioner shall set by regulation the fees provided for in this subtitle.</text> </level> <level label="b"> <text>The fees established by the Commissioner under this section shall be reasonable and set in a manner that will produce funds sufficient to cover the actual direct and indirect costs of regulating licensees in accordance with the provisions of this subtitle.</text> </level> <level label="c"> <text>The Commissioner shall publish the fee schedule set by the Commissioner.</text> </level> <level label="d"> <text>All revenue received for the licensing and assessment of persons under this subtitle and any other fee or revenue the Commissioner receives under this subtitle shall be:</text> <level label="1"> <text>Credited to the Fund; and</text> </level> <level label="2"> <text>Used in accordance with § 2–120(d) of this article.</text> </level> </level> <level label="e"> <text>Subject to § 2–120(h) of this article, the Commissioner may impose an annual assessment on any licensee under this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-612.2" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Active service member” has the meaning stated in § 9–901 of the State Government Article.</text> </level> <level label="3"> <level label="i"> <text>“Eligible spouse” means the spouse of an active service member or eligible veteran.</text> </level> <level label="ii"> <text>“Eligible spouse” includes a surviving spouse of:</text> <level label="1"> <text>An eligible veteran; or</text> </level> <level label="2"> <text>An active service member who died before the date on which the license application, renewal, or change of status is submitted.</text> </level> </level> </level> <level label="4"> <text>“Eligible veteran” means a veteran who was discharged from active duty before the date on which the license application, renewal, or change of status is submitted.</text> </level> </level> <level label="b"> <text>To expedite the renewal or change of status of a license for an active service member, eligible veteran, or eligible spouse, the Commissioner may waive or suspend any licensing requirements to the extent that the waiver or suspension does not result in the failure to meet the minimum licensing standards set forth in 12 U.S.C. Chapter 51 and the regulations adopted under it.</text> </level> <level label="c"> <text>To expedite the issuance of a license to an active service member, eligible veteran, or eligible spouse who holds a valid mortgage loan originator license in another state, the Commissioner may waive or suspend any licensing requirements to the extent that the waiver or suspension does not result in the failure to meet the minimum licensing standards set forth in 12 U.S.C. Chapter 51 and the regulations adopted under it.</text> </level> <level label="d"> <text>An individual authorized to practice in the State under § 10–14B–03 of the State Government Article may not be required to apply for expedited licensure under this section to practice in the State.</text> </level> <level label="e"> <text>The Commissioner shall publish prominently on the Commissioner’s website, or have published on a third–party website used for licensing mortgage loan originators in the State, the expedited processes for the issuance, renewal, or change of status of a license under this section.</text> </level> <level label="f"> <text>The Commissioner may adopt regulations to carry out this section.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-613" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <level label="1"> <text>Any person aggrieved by the conduct of a licensee under this subtitle in connection with a mortgage loan may file a written complaint with the Commissioner who shall investigate the complaint.</text> </level> <level label="2"> <text>The Commissioner may make any other investigation of a licensee if the Commissioner has reasonable cause to believe that the licensee has violated any provision of this subtitle, of any regulation adopted under this subtitle, or of any other law regulating mortgage lending or mortgage origination in the State.</text> </level> </level> <level label="b"> <text>In addition to the requirements of this section, an affiliated insurance producer–mortgage loan originator licensed under § 11–603.1 of this subtitle shall be subject to the provisions of §§ 11–513 and 11–515 of this title:</text> <level label="1"> <text>To the extent the Commissioner determines is necessary to enable the Commissioner to investigate and examine the mortgage loan origination activities of the affiliated insurance producer–mortgage loan originator; and</text> </level> <level label="2"> <text>As specified in regulations adopted by the Commissioner.</text> </level> </level> <level label="c"> <text>A licensee shall pay to the Commissioner a per–day fee set by the Commissioner for each of the Commissioner’s employees engaged in any investigation conducted under this section that the Commissioner reasonably considers necessary.</text> </level> <level label="d"> <text>In connection with an investigation made under this section, the Commissioner may:</text> <level label="1"> <text>Examine the books and records of a licensee or of any other person that the Commissioner believes has violated a provision of this subtitle, any rule or regulation adopted under this subtitle, or any other law regulating mortgage lending or mortgage origination in the State;</text> </level> <level label="2"> <text>Subpoena documents or other evidence; and</text> </level> <level label="3"> <text>Summon and examine under oath any person whose testimony the Commissioner requires.</text> </level> </level> <level label="e"> <level label="1"> <text>If a person fails to comply with a subpoena or summons of the Commissioner under this subtitle or to testify concerning any matter about which the person may be interrogated under this subtitle, the Commissioner may file a petition for enforcement with the circuit court for a county.</text> </level> <level label="2"> <text>On petition by the Commissioner, the court may order the person to attend and testify or produce evidence.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-614" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>If the Commissioner finds that the conduct of any other business conceals a violation or evasion of this subtitle or any rule or regulation adopted under this subtitle, or any law regulating mortgage lending or mortgage origination in the State, the Commissioner may issue a written order to a licensee to stop doing business:</text> <level label="1"> <text>At any place in which the other business is conducted or solicited; or</text> </level> <level label="2"> <text>In association or conjunction with the other business.</text> </level> </level> <level label="b"> <text>A licensee who violates an order of the Commissioner issued under this section shall be subject to the penalties provided by § 11-615 of this subtitle.</text> </level> <level label="c"> <text>The Commissioner may file a petition in the circuit court for a county seeking enforcement of an order under this section.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-615" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>Subject to the hearing provisions of § 11–616 of this subtitle, and except as provided in subsection (f) of this section, the Commissioner may suspend or revoke the license of any licensee if the licensee:</text> <level label="1"> <text>Makes any material misstatement in an application for a license;</text> </level> <level label="2"> <text>Is convicted under the laws of the United States or of any state of a felony or a misdemeanor that is directly related to the fitness and qualification of the individual to act as a mortgage loan originator;</text> </level> <level label="3"> <text>In connection with any mortgage loan or loan application transaction:</text> <level label="i"> <text>Commits any fraud;</text> </level> <level label="ii"> <text>Engages in any illegal or dishonest activities; or</text> </level> <level label="iii"> <text>Misrepresents or fails to disclose any material facts to a person entitled to that information;</text> </level> </level> <level label="4"> <text>Violates any provision of this subtitle, any regulation adopted under this subtitle, or any other law regulating mortgage lending or mortgage origination in the State; or</text> </level> <level label="5"> <text>Otherwise demonstrates unworthiness, bad faith, dishonesty, or any other quality that indicates that the business of the licensee has not been or will not be conducted honestly.</text> </level> </level> <level label="b"> <text>In determining whether a license shall be suspended or revoked for a reason described in subsection (a)(2) of this section, the Commissioner shall consider:</text> <level label="1"> <text>The nature of the crime;</text> </level> <level label="2"> <text>The relationship of the crime to the activities authorized by the license;</text> </level> <level label="3"> <text>With respect to a felony, the relevance of the conviction to the fitness and qualification of the licensee to engage in the mortgage lending or mortgage origination business;</text> </level> <level label="4"> <text>The length of time since the conviction; and</text> </level> <level label="5"> <text>The behavior and activities of the licensee since the conviction.</text> </level> </level> <level label="c"> <level label="1"> <text>The Commissioner may enforce the provisions of this subtitle, regulations adopted under this subtitle, and the applicable provisions of Title 12 of the Commercial Law Article by:</text> <level label="i"> <text>Issuing an order:</text> <level label="1"> <text>To cease and desist from the violation and any further similar violations; and</text> </level> <level label="2"> <text>Requiring the violator to take affirmative action to correct the violation, including the restitution of money or property to any person aggrieved by the violation; and</text> </level> </level> <level label="ii"> <text>Imposing a civil penalty not exceeding $10,000 for each violation.</text> </level> </level> <level label="2"> <text>If a violator fails to comply with an order issued under paragraph (1)(i) of this subsection, the Commissioner may impose a civil penalty not exceeding $25,000 for each violation from which the violator failed to cease and desist or for which the violator failed to take affirmative action to correct.</text> </level> </level> <level label="d"> <text>The Commissioner may file a petition in the circuit court for a county seeking enforcement of an order issued under this section.</text> </level> <level label="e"> <text>In determining the amount of a civil penalty imposed under subsection (c) of this section, the Commissioner shall consider:</text> <level label="1"> <text>The seriousness of the violation;</text> </level> <level label="2"> <text>The good faith of the violator;</text> </level> <level label="3"> <text>The violator’s history of previous violations;</text> </level> <level label="4"> <text>The deleterious effect of the violation on the public and mortgage industry;</text> </level> <level label="5"> <text>The assets of the violator; and</text> </level> <level label="6"> <text>Any other factors relevant to the determination of the civil penalty.</text> </level> </level> <level label="f"> <text>The Commissioner shall revoke the license of the licensee if the Commissioner determines that a licensee, while licensed, has:</text> <level label="1"> <text>Been convicted of a felony; or</text> </level> <level label="2"> <text>Had a mortgage loan originator license revoked in any governmental jurisdiction.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-616" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>Before the Commissioner takes any action under § 11-614 or § 11-615 of this subtitle, the Commissioner shall give the licensee an opportunity for a hearing.</text> </level> <level label="b"> <text>Notice of the hearing shall be given and the hearing shall be held in accordance with the Administrative Procedure Act.</text> </level> <level label="c"> <text>The hearing notice to the licensee shall be sent by certified mail, return receipt requested, to the principal place of business of the licensee at least 30 days before the hearing.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-617" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <text>Any person who willfully violates the provisions of this subtitle is guilty of a felony and, on conviction, is subject to a fine not exceeding $25,000 or imprisonment not exceeding 5 years or both.</text> </section> <section article="gfi" article_name="Financial Institutions" number="11-618" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <text>The employment of a mortgage loan originator licensed under this subtitle by a mortgage lender does not relieve the mortgage lender of a responsibility under this subtitle or under Subtitle 5 of this title, a rule or regulation adopted under this subtitle or under Subtitle 5 of this title, or a law governing mortgage lending in the State.</text> </section> <section article="gfi" article_name="Financial Institutions" number="11-619" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>Each mortgage loan originator shall be covered by a surety bond in accordance with this section.</text> </level> <level label="b"> <level label="1"> <text>A mortgage loan originator who is an employee of a person subject to licensure under Subtitle 5 of this title may use the surety bond of that person to meet the mortgage loan originator’s surety bond requirement.</text> </level> <level label="2"> <text>A mortgage loan originator who is an employee of a person exempt from licensure under Subtitle 5 of this title may use a surety bond of the person to meet the mortgage loan originator’s surety bond requirement, provided the surety bond meets the requirements, based on mortgage loan volume, under § 11–508 of this title.</text> </level> </level> <level label="c"> <text>A licensee who is an affiliated insurance producer–mortgage loan originator shall be deemed in compliance with this section if the licensee:</text> <level label="1"> <text>Holds a surety bond that would satisfy the surety bond requirements under § 11–508 of this title if the affiliated insurance producer–mortgage loan originator were a licensee under Subtitle 5 of this title; or</text> </level> <level label="2"> <text>Is covered under a blanket surety bond held by a financial institution identified in § 11–603.1(a)(1)(i) of this subtitle or a mortgage lender identified in § 11–603.1(a)(1)(ii) or (3)(ii) of this subtitle if the blanket surety bond:</text> <level label="i"> <text>Covers all affiliated insurance producer–mortgage loan originators; and</text> </level> <level label="ii"> <text>Is in the amount of $1,000,000 or another amount as required by the Commissioner by regulation.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-620" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <level label="1"> <text>Except as otherwise provided in 12 U.S.C. § 5111, the requirements under any federal law and Title 4, Subtitles 1 through 5 of the General Provisions Article regarding the privacy or confidentiality of information or material provided to the Nationwide Multistate Licensing System, and any privilege arising under federal or state law, including the rules of any federal or state court with respect to that information or material, shall continue to apply to that information or material after the information or material has been disclosed to the Nationwide Multistate Licensing System.</text> </level> <level label="2"> <text>The information and material may be shared with all state and federal regulatory officials having mortgage industry oversight authority without the loss of privilege or the loss of confidentiality protections provided by federal law or Title 4, Subtitles 1 through 5 of the General Provisions Article.</text> </level> </level> <level label="b"> <text>The Commissioner may enter into information sharing agreements with other governmental agencies, the Conference of State Bank Supervisors, the American Association of Residential Mortgage Regulators, or other associations representing governmental agencies.</text> </level> <level label="c"> <text>Information or material that is subject to a privilege or confidentiality under subsection (a) of this section may not be subject to:</text> <level label="1"> <text>Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or agency of the federal government or a state that has received the information or material; or</text> </level> <level label="2"> <text>Subpoena, discovery, or admission into evidence, in any private civil action or administrative process, unless with respect to any privilege held by the Nationwide Multistate Licensing System the person to whom the information or material pertains waives, in whole or in part, that privilege.</text> </level> </level> <level label="d"> <text>Any provisions of Title 4, Subtitles 1 through 5 of the General Provisions Article relating to the disclosure of any information or material described in subsection (a) of this section that are inconsistent with subsection (a) of this section shall be superseded by the requirements of this section.</text> </level> <level label="e"> <text>This section does not apply to information or material relating to the employment history of, and publicly adjudicated disciplinary and enforcement actions against, mortgage loan originators that is included in the Nationwide Multistate Licensing System and designated for access by the public.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-621" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <text>Nonfederally insured credit unions that employ mortgage loan originators shall register these employees with the Nationwide Multistate Licensing System by providing the information concerning the employees’ identity set forth in 12 U.S.C. § 5106(a)(2).</text> </section> <section article="gfi" article_name="Financial Institutions" number="11-622" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>Notwithstanding Title 4, Subtitles 1 through 5 of the General Provisions Article, and subject to § 11–620 of this subtitle, the Commissioner shall report adjudicated enforcement actions and other relevant information to the Nationwide Multistate Licensing System.</text> </level> <level label="b"> <text>The Commissioner shall adopt regulations establishing a process by which a licensee or an applicant for a license may challenge information entered by the Commissioner into the Nationwide Multistate Licensing System.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="11-623" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <text>The unique identifier of a mortgage loan originator shall be clearly displayed as required by the Commissioner by regulation.</text> </section> <section article="gfi" article_name="Financial Institutions" number="11-624" title_number="11" title_name="Consumer Credit" subtitle_number="6" subtitle_name="Mortgage Loan Originators"> <level label="a"> <text>A person subject to this subtitle may not, in connection with a mortgage loan or loan application:</text> <level label="1"> <text>Make a payment, threat, or promise, directly or indirectly, to another person for the purpose of influencing the person to violate any federal or State law, or any standard of professional practice recognized by the federal or State government; or</text> </level> <level label="2"> <text>Make a payment, threat, or promise, directly or indirectly, to an appraiser of residential real estate for the purpose of influencing the independent judgment of the appraiser with respect to the value of the residential real estate, or engage in any other act or practice that impairs or attempts to impair an appraiser’s independence, objectivity, or impartiality, including:</text> <level label="i"> <text>Withholding or threatening to withhold payment for an appraisal with the intent to coerce the appraiser to agree to a value, range of values, or minimum value for the residential real estate;</text> </level> <level label="ii"> <text>Conditioning the payment of an appraisal fee on the opinion, conclusion, or valuation to be reached by the appraiser; or</text> </level> <level label="iii"> <text>Requesting the appraiser to report a predetermined opinion, conclusion, or valuation.</text> </level> </level> </level> <level label="b"> <text>This section does not prohibit a person subject to this subtitle from:</text> <level label="1"> <text>Requesting another person to:</text> <level label="i"> <text>Consider additional appropriate information;</text> </level> <level label="ii"> <text>Provide additional details, substantiation, or explanation of a conclusion made by the other person; or</text> </level> <level label="iii"> <text>Correct errors in an appraisal report or other mortgage document; or</text> </level> </level> <level label="2"> <text>Withholding payment for an appraisal pending resolution of an action before a federal or State court or licensing board relating to the appraisal.</text> </level> </level> </section>