Title 11. Consumer Credit — Subtitle 5. Maryland Mortgage Lender Law
Statutes in effect as of October 1, 2026.
Md. Code Ann., Fin. Inst. § 11-501 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–501LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“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.
(b–1)
(1)
“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.
(2)
“Conventional home mortgage loan” includes a loan in which funds are advanced through a shared appreciation agreement.
(3)
“Conventional home mortgage loan” does not include a loan that is insured or guaranteed by the federal government.
(c)
(1)
“Dwelling” means a residential structure or mobile home that contains one to four family housing units or individual units of condominiums or cooperatives.
(2)
“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.
(d)
(1)
“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.
(2)
“Independent evidence of commercial purpose” does not include an affidavit of the borrower without supporting evidence, except where:
(i)
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
(ii)
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.
(e)
“Interest in real estate” includes:
(1)
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;
(2)
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;
(3)
A mortgage, deed of trust or lien other than a judgment lien, on a dwelling or residential real estate; and
(4)
Any other security interest that has the effect of creating a lien on a dwelling or residential real estate in Maryland.
(f)
“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.
(f–1)
“Licensed location” means any location listed by the licensee in NMLS in accordance with this subtitle.
(f–2)
“Licensed name” means:
(1)
The licensee’s legal name; and
(2)
Any trade name used by the licensee in accordance with § 2–121 of this article.
(g)
“Licensee” means a person licensed under this subtitle to engage in business as a mortgage lender.
(h)
(1)
“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.
(2)
“Loan application” does not include the use of an account or line of credit to obtain a loan within a previously established credit limit.
(i)
“Mobile home” means a structure, including the plumbing, heating, air conditioning, and electrical systems contained in the structure, that is:
(1)
Transportable in one or more sections;
(2)
Eight or more body feet in width and 30 or more body feet in length;
(3)
Built on a permanent chassis; and
(4)
Permanently attached to land or connected to utility, water, or sewage facilities.
(j)
“Mortgage broker” means a person who:
(1)
For a fee or other valuable consideration, whether received directly or indirectly, aids or assists a borrower in obtaining a mortgage loan; and
(2)
Is not named as a lender in the agreement, note, deed of trust, or other evidence of the indebtedness.
(k)
(1)
“Mortgage lender” means any person who:
(i)
Is a mortgage broker;
(ii)
Makes a mortgage loan to any person; or
(iii)
Is a mortgage servicer.
(2)
“Mortgage lender” does not include:
(i)
A financial institution that accepts deposits and is regulated under Title 3, Title 4, Title 5, or Title 6 of this article;
(ii)
The Federal Home Loan Mortgage Corporation;
(iii)
The Federal National Mortgage Association;
(iv)
The Government National Mortgage Association;
(v)
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
(vi)
An affiliated insurance producer–mortgage loan originator licensed under § 11–603.1 of this title.
(l)
(1)
“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.
(2)
“Mortgage lending business” includes the making or procuring of mortgage loans secured by a dwelling or residential real estate located outside Maryland.
(m)
(1)
“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.
(2)
“Mortgage loan” includes a loan in which funds are advanced through a shared appreciation agreement.
(n)
“Mortgage loan originator” has the meaning stated in § 11–601 of this title.
(o)
“Mortgage servicer” means a person who:
(1)
Engages in whole or in part in the business of servicing mortgage loans for others; or
(2)
Collects or otherwise receives payments on mortgage loans directly from borrowers for distribution to any other person.
(p)
“Passive trust” means a trust that:
(1)
Acquires or is assigned mortgage loans in whole or in part;
(2)
Does not make mortgage loans;
(3)
Is not a mortgage broker or a mortgage servicer; and
(4)
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.
(q)
“Person” means a natural person, corporation, limited liability company, partnership, business trust, statutory trust, or association.
(r)
“Residential real estate” means any owner–occupied real property located in Maryland on which a dwelling is constructed or intended to be constructed.
(s)
“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:
(1)
The transfer of ownership;
(2)
A repayment maturity date;
(3)
The death of the consumer; or
(4)
Any other event contemplated by the writing.
(t)
“State” means the State of Maryland.
(u)
“Trust” includes any trust established under the laws of the State or any other state.
Md. Code Ann., Fin. Inst. § 11-502 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–502LinkCopy Citation
(a)
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.
(b)
The provisions of this subtitle do not apply to:
(1)
Any bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of this State or the United States or any other–state bank having a branch in this State;
(2)
Any insurance company authorized to do business in the State;
(3)
Any corporate instrumentality of the Government of the United States including:
(i)
The Federal Home Loan Mortgage Corporation;
(ii)
The Federal National Mortgage Association;
(iii)
The Government National Mortgage Association; and
(iv)
A trust established by any corporate instrumentality of the Government of the United States for the purpose of acquiring mortgage loans;
(4)
Any person who takes back a deferred purchase money mortgage in connection with the sale of:
(i)
A dwelling or residential real estate owned by, and titled in the name of, that person; or
(ii)
A new residential dwelling that the person built;
(5)
A nonprofit charitable organization registered with the Maryland Secretary of State or a nonprofit religious organization;
(6)
An employer making a mortgage loan to an employee;
(7)
A person making a mortgage loan to a borrower who is the person’s spouse, child, child’s spouse, parent, sibling, grandparent, grandchild, or grandchild’s spouse;
(8)
A real estate broker who:
(i)
Is licensed in the State; and
(ii)
Makes a mortgage loan providing a repayment schedule of 2 years or less to assist the borrower in the purchase or sale of a dwelling or residential real estate through the broker;
(9)
A home improvement contractor licensed under the Maryland Home Improvement Law who assigns a mortgage loan without recourse within 30 days after completion of the contract to a person licensed under this subtitle or to an institution that is exempt from this subtitle under item (1), (2), or (10) of this subsection;
(10)
A subsidiary or affiliate of an institution described in subsection (c) of this section, which subsidiary or affiliate:
(i)
Is subject to audit or examination by a regulatory body or agency of this State or the state where the subsidiary or affiliate maintains its principal office; and
(ii)
Files with the Commissioner, prior to making mortgage loans, information sufficient to identify:
(1)
The correct corporate name of the subsidiary or affiliate;
(2)
An address and telephone number of a contact person for the subsidiary or affiliate;
(3)
A resident agent; and
(4)
Any additional information considered necessary by the Commissioner for protection of the public;
(11)
Any employee benefit plan qualified under Internal Revenue Code § 401 or persons acting as fiduciaries with respect to such a plan, making mortgage loans solely to plan participants from plan assets;
(12)
Employees acting within the scope of their employment with:
(i)
A licensed mortgage lender; or
(ii)
A person who is exempt from licensure under this subtitle; or
(13)
A passive trust.
(c)
The exemption in subsection (b)(10) of this section applies to subsidiaries and affiliates of:
(1)
Any bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of this State; or
(2)
Any other–state bank, as that term is defined in § 5–1001 of this article, having a branch that accepts deposits in this State.
(d)
The exemptions provided in subsection (b) of this section do not apply to any person who has been denied a license to engage in business as a mortgage lender or real estate broker or whose license to engage in such activities has been suspended or revoked within the 3 immediately preceding calendar years.
Md. Code Ann., Fin. Inst. § 11-503 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–503LinkCopy Citation
The Commissioner may adopt rules and regulations to carry out the provisions of this subtitle.
Md. Code Ann., Fin. Inst. § 11-503.1 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–503.1LinkCopy Citation
(a)
The Commissioner shall set by regulation the fees provided for in this subtitle.
(b)
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.
(c)
The Commissioner shall publish the fee schedule set by the Commissioner.
Md. Code Ann., Fin. Inst. § 11-503.2 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–503.2LinkCopy Citation
(a)
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:
(1)
Credited to the Non–Depository Special Fund established under § 2–120 of this article; and
(2)
Used in accordance with § 2–120(d) of this article.
(b)
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.
(c)
Subject to § 2–120(h) of this article, the Commissioner may impose an annual assessment on any licensee under this subtitle.
Md. Code Ann., Fin. Inst. § 11-504 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–504LinkCopy Citation
A person may not act as a mortgage lender unless the person is:
(1)
A licensee; or
(2)
A person exempted from licensing under this subtitle.
Md. Code Ann., Fin. Inst. § 11-505 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–505LinkCopy Citation
(a)
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.
(b)
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.
(c)
(1)
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:
(i)
The attorney for the borrower or for the licensee; or
(ii)
A title insurance company, a title company, or an attorney for a title insurance company or a title company.
(2)
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.
(3)
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.
(d)
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:
(1)
The business entity maintains any office within the State; or
(2)
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.
(e)
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.
(f)
Information in NMLS associated with a license approved by the Commissioner under this subtitle shall include the following:
(1)
The licensee’s legal name and any trade name used by the licensee in accordance with § 2–121 of this article;
(2)
The address of the licensee’s principal executive office; and
(3)
The address of each additional location, if any, where the licensee does business and that:
(i)
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;
(ii)
Houses any core operational infrastructure or technology systems;
(iii)
Conducts any core management, information security and technology, risk and compliance, or finance functions; or
(iv)
Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle.
(g)
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.
(h)
The unique identifier of the licensee shall constitute the license number for the license.
(i)
A licensee may not conduct any business as a mortgage lender:
(1)
Under any name other than a licensed name; or
(2)
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.
Md. Code Ann., Fin. Inst. § 11-506 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–506LinkCopy Citation
(a)
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:
(1)
Engage in business as a mortgage lender;
(2)
Warrant the belief that the business will be conducted lawfully, honestly, fairly, and efficiently; and
(3)
Command the confidence of the public.
(b)
(1)
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.
(2)
If the applicant is a sole proprietor, the applicant shall have the required experience.
(3)
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.
(4)
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.
(c)
(1)
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.
(2)
The Commissioner shall deny an application for a license filed by:
(i)
An individual who has been convicted within the last 10 years of a felony involving fraud, theft, or forgery; and
(ii)
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.
Md. Code Ann., Fin. Inst. § 11-506.1 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–506.1LinkCopy Citation
(a)
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.
(b)
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:
(1)
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
(2)
Personal history and experience in a form prescribed by NMLS, including the submission of authorization for NMLS and the Commissioner to obtain:
(i)
An independent credit report from a consumer reporting agency described in the federal Fair Credit Reporting Act, 15 U.S.C. § 1681a(p); and
(ii)
Information related to any administrative, civil, or criminal findings by any governmental jurisdiction.
(c)
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:
(1)
(i)
The state, national, or international criminal history records of the applicant or licensee; and
(ii)
A printed statement listing any conviction or other disposition of, and any plea of guilty or nolo contendere to, any criminal charge;
(2)
(i)
An update of the initial criminal history records check or criminal history background check of the applicant or licensee; and
(ii)
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
(3)
An acknowledged receipt of the application for a criminal history records check or criminal history background check of the applicant or licensee.
(d)
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.
(e)
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.
Md. Code Ann., Fin. Inst. § 11-507 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–507LinkCopy Citation
(a)
(1)
To apply for a license, an applicant shall:
(i)
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
(ii)
Provide all information that the Commissioner requests.
(2)
The application shall include:
(i)
The applicant’s legal name and any trade name used by the applicant in accordance with § 2–121 of this article;
(ii)
The applicant’s principal executive office address;
(iii)
If the applicant is not an individual, the name and residence address of each control person;
(iv)
The address of each additional location, if any, that:
(1)
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;
(2)
Houses any core operational infrastructure or technology systems;
(3)
Conducts any core management, information security and technology, risk and compliance, or finance functions; or
(4)
Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle; and
(v)
Any other pertinent information that the Commissioner requires.
(3)
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.
(b)
The applicant shall pay to the Commissioner the following fees:
(1)
A nonrefundable investigation fee set by the Commissioner; and
(2)
A nonrefundable license fee set by the Commissioner.
(c)
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.
(d)
In addition to any sanctions that may be imposed under this subtitle by the Commissioner, a nonrefundable surcharge of $500 shall be paid:
(1)
With an application if the applicant has begun acting as a mortgage lender without a license; and
(2)
By a licensee if the licensee has acted as a mortgage lender at a location that is not a licensed location.
(e)
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.
Md. Code Ann., Fin. Inst. § 11-508 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–508LinkCopy Citation
(a)
With the application for a license, an applicant shall file a surety bond with the Commissioner.
(b)
(1)
The bond shall run to the Commissioner, as obligee, for the benefit of:
(i)
The State; and
(ii)
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.
(2)
The bond shall be:
(i)
In an amount determined by the Commissioner under subsection (c) of this section;
(ii)
Issued by a surety company that:
(1)
Is authorized to do business in the State; and
(2)
Holds a certificate of authority issued by the Maryland Insurance Commissioner; and
(iii)
Conditioned that the licensee shall comply with all Maryland laws regulating the activities of mortgage lenders and mortgage loan lending.
(3)
The liability of the surety:
(i)
Shall be continuous;
(ii)
May not be aggregated or cumulative, whether or not the bond is renewed, continued, replaced, or modified;
(iii)
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;
(iv)
Shall be considered to be one continuous obligation, regardless of increases or decreases in the penal sum of the bond;
(v)
May not be affected by:
(1)
The insolvency or bankruptcy of the licensee;
(2)
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
(3)
The suspension of the licensee’s license;
(vi)
May not require an administrative enforcement action by the Commissioner as a prerequisite to liability; and
(vii)
Shall continue for 3 years after the later of the date on which:
(1)
The bond is canceled; or
(2)
The licensee, for any reason, ceases to be licensed.
(4)
(i)
A bond may be canceled by the surety or the licensee by giving notice of cancellation to the Commissioner.
(ii)
Notice under subparagraph (i) of this paragraph shall:
(1)
Be in writing; and
(2)
Be sent by certified mail, return receipt requested.
(iii)
A cancellation of a bond under this paragraph is not effective until 90 days after receipt of a notice of cancellation by the Commissioner.
(5)
A claim against the bond may be filed with the surety by:
(i)
A claimant; or
(ii)
The Commissioner for the benefit of a claimant or the State.
(6)
If the amount of claims against a bond exceeds the amount of the bond, the surety:
(i)
Shall pay the amount of the bond to the Commissioner for pro rata distribution to claimants; and
(ii)
Is relieved of liability under the bond.
(7)
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.
(8)
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.
(c)
(1)
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.
(2)
In setting the amount of the surety bond, the Commissioner may consider:
(i)
The nature and volume of the business or proposed business of the licensee or applicant;
(ii)
The financial condition of the licensee or applicant, including:
(1)
The amount, nature, quality, and liquidity of the assets of the licensee or applicant;
(2)
The amount and nature of the liabilities, including contingent liabilities, of the licensee or applicant;
(3)
The history of and prospects for the licensee or applicant to earn and retain income; and
(4)
The potential harm to consumers if the applicant or licensee becomes financially impaired;
(iii)
The quality of the operations of the licensee or applicant;
(iv)
The quality of the management of the licensee or applicant;
(v)
The nature and quality of the person that has control of the licensee or applicant; and
(vi)
Any other factor that the Commissioner considers relevant.
(d)
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.
(e)
(1)
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.
(2)
The regulations may provide for periodic reporting, recalculation, and enforcement of required bond amounts.
(f)
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:
(1)
Reduce the bond or the deposit in lieu of a bond to cash; and
(2)
Use the cash to defray the costs associated with the receivership.
Md. Code Ann., Fin. Inst. § 11-508.1 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–508.1LinkCopy Citation
(a)
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:
(1)
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;
(2)
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;
(3)
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:
(i)
$100,000, if the unpaid principal balance of the entire servicing portfolio is less than or equal to $50,000,000;
(ii)
$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;
(iii)
$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
(iv)
$1,000,000, if the unpaid principal balance of the entire servicing portfolio is greater than $250,000,000; and
(4)
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:
(i)
$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;
(ii)
$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;
(iii)
$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
(iv)
$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.
(b)
(1)
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:
(i)
Cash on deposit with a bank or depository institution;
(ii)
A working capital line of credit from a bank or depository institution;
(iii)
An irrevocable letter of credit from a bank or depository institution;
(iv)
Other assets; or
(v)
A combination of cash, a working capital line of credit, an irrevocable letter of credit, or other assets.
(2)
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:
(i)
The account balance;
(ii)
The type of account in which the funds are held; and
(iii)
That the funds are not encumbered or hypothecated in any way.
(3)
(i)
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.
(ii)
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.
(iii)
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.
(4)
(i)
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.
(ii)
An irrevocable letter of credit may not:
(1)
Terminate prior to the expiration of a license; or
(2)
Be modified or revoked without the prior written consent of the Commissioner.
(c)
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.
Md. Code Ann., Fin. Inst. § 11-509 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–509LinkCopy Citation
(a)
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.
(b)
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.
(c)
The Commissioner shall issue a license to any applicant who meets the requirements of this subtitle.
Md. Code Ann., Fin. Inst. § 11-510 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–510LinkCopy Citation
(a)
If an applicant does not meet the requirements of this subtitle, the Commissioner shall:
(1)
Immediately notify the applicant in writing of this fact;
(2)
Return the bond filed under § 11-508 of this subtitle;
(3)
Refund the license fee; and
(4)
Keep the investigation fee.
(b)
Within 30 days after the Commissioner denies an application, the Commissioner shall:
(1)
File in the Commissioner’s office a written decision containing the findings and conclusions on which the denial was based;
(2)
Send a copy of the decision to the applicant; and
(3)
Advise the applicant by certified mail of the applicant’s right to a hearing to be held in accordance with the Administrative Procedure Act.
(c)
(1)
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.
(2)
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.
Md. Code Ann., Fin. Inst. § 11-511 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–511LinkCopy Citation
(a)
Subject to any regulations the Commissioner adopts in connection with the transition to NMLS, an initial license term shall:
(1)
Begin on the day the license is issued; and
(2)
Expire on December 31 of the year:
(i)
The license is issued, if the license is issued before November 1; or
(ii)
Succeeding the year that the license is issued, if the license is issued on or after November 1.
(b)
At least 60 days before its expiration, a license may be renewed if the licensee:
(1)
Otherwise is entitled to be licensed;
(2)
Pays to the Commissioner a nonrefundable renewal fee set by the Commissioner; and
(3)
Submits to the Commissioner:
(i)
A renewal application on the form that the Commissioner requires; and
(ii)
Satisfactory evidence of compliance with any continuing education requirements set by regulations adopted by the Commissioner.
(c)
Subject to any regulations the Commissioner adopts in connection with the transition to NMLS, a renewal term shall:
(1)
Be for a period of 1 year;
(2)
Begin on January 1 of each year after the initial term; and
(3)
Expire on December 31 of the year the renewal term begins.
(d)
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.
(e)
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.
Md. Code Ann., Fin. Inst. § 11-511.1 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–511.1LinkCopy Citation
(a)
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.
(b)
Any continuing education requirements established by the Commissioner under this section shall apply to the first renewal of a license.
Md. Code Ann., Fin. Inst. § 11-512 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–512LinkCopy Citation
(a)
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:
(1)
The licensee provides to the Commissioner, through NMLS and in accordance with any regulations the Commissioner adopts, notice of the addition, deletion, or modification;
(2)
The addition, deletion, or modification of the location is recorded with the information associated with the licensee’s license in NMLS; and
(3)
The addition, deletion, or modification of the location otherwise complies with this subtitle.
(b)
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.
(c)
(1)
A licensee may not undergo a change in control unless the licensee:
(i)
Notifies the Commissioner through NMLS of the proposed change;
(ii)
Makes a request through NMLS that the Commissioner approve the proposed change;
(iii)
Provides any information the Commissioner may require under paragraph (3) of this subsection; and
(iv)
Receives the approval of the Commissioner through NMLS.
(2)
For purposes of this subsection:
(i)
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
(ii)
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.
(3)
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.
(4)
The Commissioner shall approve or deny a request for approval of a proposed change in control:
(i)
Within 60 days after the date the Commissioner receives the request; or
(ii)
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.
(5)
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.
(d)
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:
(1)
For each such failure pay to the Commissioner a surcharge in the amount of $500; and
(2)
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.
Md. Code Ann., Fin. Inst. § 11-512.1 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–512.1LinkCopy Citation
(a)
Each licensee shall conspicuously post, in 48 point or larger type, at each licensed location the following information:
(1)
The licensee’s unique identifier; and
(2)
A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.
(b)
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:
(1)
The licensee’s unique identifier; and
(2)
A link to the NMLS Consumer Access website.
(c)
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.
Md. Code Ann., Fin. Inst. § 11-513 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–513LinkCopy Citation
(a)
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:
(1)
This subtitle;
(2)
Any rule or regulation adopted under this subtitle; and
(3)
Any other provision regulating the application, making, brokering, or servicing of mortgage loans under Titles 12 through 14 of the Commercial Law Article.
(b)
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.
(c)
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:
(1)
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
(2)
Retains the records for at least 61 months in a storage facility disclosed to the Commissioner.
Md. Code Ann., Fin. Inst. § 11-513.1 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–513.1LinkCopy Citation
(a)
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.
(b)
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.
Md. Code Ann., Fin. Inst. § 11-514 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–514LinkCopy Citation
(a)
A licensee may surrender a license through NMLS in accordance with the process that the Commissioner requires.
(b)
The surrender of a license does not affect any civil or criminal liability of a licensee for acts committed before the license was surrendered.
Md. Code Ann., Fin. Inst. § 11-515 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–515LinkCopy Citation
(a)
(1)
The Commissioner shall examine the business of each licensee:
(i)
In accordance with a schedule established by the Commissioner; and
(ii)
At any other time that the Commissioner reasonably considers necessary.
(2)
The schedule established by the Commissioner under paragraph (1)(i) of this subsection shall:
(i)
Take into account:
(1)
The length of time the licensee has been engaged in business as a mortgage lender;
(2)
Any prior violations by the licensee of the mortgage lending law or regulations;
(3)
The nature and number of any complaints made against the licensee; and
(4)
The result of findings from any prior examination of the licensee; and
(ii)
Provide that:
(1)
New licensees shall be examined within 18 months after the date the license is issued; and
(2)
Each licensee shall be examined at least once during any 60–month period.
(b)
(1)
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.
(2)
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.
(c)
A licensee shall pay to the Commissioner a per–day fee set by the Commissioner for each of the Commissioner’s employees engaged in:
(1)
An examination required under subsection (a)(1) of this section; and
(2)
Any other examination or investigation conducted under this section that the Commissioner reasonably considers necessary.
(d)
In connection with an examination or investigation made under this section, the Commissioner may:
(1)
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;
(2)
Subpoena documents or other evidence; and
(3)
Summon and examine under oath any person whose testimony the Commissioner requires.
(e)
(1)
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.
(2)
On petition by the Commissioner, the court may order the person to attend and testify or produce evidence.
Md. Code Ann., Fin. Inst. § 11-516 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–516LinkCopy Citation
(a)
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:
(1)
Stop doing business at any place in which the other business is conducted or solicited; or
(2)
Stop doing business in association or conjunction with the other business.
(b)
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.
(c)
The Commissioner may file a petition in the circuit court for any county seeking enforcement of an order under this section.
Md. Code Ann., Fin. Inst. § 11-517 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–517LinkCopy Citation
(a)
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:
(1)
Makes any material misstatement in an application for a license;
(2)
Is convicted under the laws of the United States or of any state of:
(i)
A felony; or
(ii)
A misdemeanor that is directly related to the fitness and qualification of the person to engage in the mortgage lending business;
(3)
In connection with any mortgage loan or loan application transaction:
(i)
Commits any fraud;
(ii)
Engages in any illegal or dishonest activities; or
(iii)
Misrepresents or fails to disclose any material facts to anyone entitled to that information;
(4)
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
(5)
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.
(b)
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:
(1)
The nature of the crime;
(2)
The relationship of the crime to the activities authorized by the license;
(3)
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;
(4)
The length of time since the conviction; and
(5)
The behavior and activities of the licensee since the conviction.
(c)
(1)
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:
(i)
Issuing an order:
(1)
To cease and desist from the violation and any further similar violations; and
(2)
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
(ii)
Imposing a civil penalty not exceeding $10,000 for each violation.
(2)
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.
(d)
The Commissioner may file a petition in the circuit court for any county seeking enforcement of an order issued under this section.
(e)
In determining the amount of financial penalty to be imposed under subsection (c) of this section, the Commissioner shall consider:
(1)
The seriousness of the violation;
(2)
The good faith of the violator;
(3)
The violator’s history of previous violations;
(4)
The deleterious effect of the violation on the public and mortgage industry;
(5)
The assets of the violator; and
(6)
Any other factors relevant to the determination of the financial penalty.
(f)
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.
Md. Code Ann., Fin. Inst. § 11-518 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–518LinkCopy Citation
(a)
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.
(b)
Notice of the hearing shall be given and the hearing shall be held in accordance with the Administrative Procedure Act.
(c)
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.
Md. Code Ann., Fin. Inst. § 11-519 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–519LinkCopy Citation
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.
Md. Code Ann., Fin. Inst. § 11-520 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–520LinkCopy Citation
A mortgage lender may not do business under any trade name that misrepresents or tends to misrepresent that the mortgage lender is:
(1)
A bank, trust company, or savings bank;
(2)
A savings and loan association;
(3)
A credit union; or
(4)
An insurance company.
Md. Code Ann., Fin. Inst. § 11-521 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–521LinkCopy Citation
(a)
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:
(1)
Secured, in whole or in part, by any interest in a dwelling or residential real estate in Maryland; and
(2)
In excess of $75,000.
(b)
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.
Md. Code Ann., Fin. Inst. § 11-522 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–522LinkCopy Citation
(a)
(1)
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.
(2)
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:
(i)
The assumption is in connection with the granting of a decree of absolute divorce; and
(ii)
The mortgage lender or mortgage lending business determines that the assuming borrower qualifies for the loan.
(b)
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.
Md. Code Ann., Fin. Inst. § 11-523 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–523LinkCopy Citation
(a)
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.
(b)
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.
(c)
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.
Md. Code Ann., Fin. Inst. § 11-524 (2026)
Title 11. Consumer Credit
Subtitle 5. Maryland Mortgage Lender Law
§ 11–524LinkCopy Citation
This subtitle may be cited as the Maryland Mortgage Lender Law.