Title 7. Mortgages, Deeds of Trust, and Vendor's Liens — Subtitle 4. Maryland Mortgage Fraud Protection Act
Statutes in effect as of October 1, 2026.
Md. Code Ann., Real Prop. § 7-401 (2026)
Title 7. Mortgages, Deeds of Trust, and Vendor's Liens
Subtitle 4. Maryland Mortgage Fraud Protection Act
§ 7–401LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(a–1)
“Commissioner” means the Commissioner of Financial Regulation in the Maryland Department of Labor.
(b)
“Document” includes applications, appraisal reports, HUD–1 settlement statements, W–2 forms, verifications of income or employment, bank statements, tax returns, payroll stubs, and any required disclosure.
(c)
“Homeowner” means:
(1)
A record owner of residential real property; or
(2)
An individual occupying the residential real property under a use and possession order issued under Title 8, Subtitle 2 of the Family Law Article.
(d)
“Mortgage fraud” means any action by a person made with the intent to defraud that involves:
(1)
Knowingly making any deliberate misstatement, misrepresentation, or omission during the mortgage lending process with the intent that the misstatement, misrepresentation, or omission be relied on by a mortgage lender, borrower, or any other party to the mortgage lending process;
(2)
Knowingly creating or producing a document for use during the mortgage lending process that contains a deliberate misstatement, misrepresentation, or omission with the intent that the document containing the misstatement, misrepresentation, or omission be relied on by a mortgage lender, borrower, or any other party to the mortgage lending process;
(3)
Knowingly using or facilitating the use of any deliberate misstatement, misrepresentation, or omission during the mortgage lending process with the intent that the misstatement, misrepresentation, or omission be relied on by a mortgage lender, borrower, or any other party to the mortgage lending process;
(4)
Receiving any proceeds or any other funds in connection with a mortgage closing that the person knows resulted from a violation of item (1), (2), or (3) of this subsection;
(5)
Conspiring to violate any of the provisions of item (1), (2), (3), or (4) of this subsection; or
(6)
Filing or causing to be filed in the land records in the county where a residential real property is located, any document relating to a mortgage loan that the person knows to contain a deliberate misstatement, misrepresentation, or omission.
(e)
(1)
“Mortgage lending process” means the process by which a person seeks or obtains a mortgage loan.
(2)
“Mortgage lending process” includes:
(i)
The solicitation, application, origination, negotiation, servicing, underwriting, signing, closing, and funding of a mortgage loan; and
(ii)
The notarizing of any document in connection with a mortgage loan.
(f)
“Mortgage loan” has the meaning stated in § 11–501 of the Financial Institutions Article.
(g)
“Pattern of mortgage fraud” means two or more incidents of mortgage fraud that:
(1)
Involve two or more residential real properties; and
(2)
Have similar intents, results, accomplices, victims, or methods of commission or otherwise are interrelated by distinguishing characteristics.
(h)
“Residential real property” means real property improved by four or fewer single family dwelling units.
Md. Code Ann., Real Prop. § 7-402 (2026)
Title 7. Mortgages, Deeds of Trust, and Vendor's Liens
Subtitle 4. Maryland Mortgage Fraud Protection Act
§ 7–402LinkCopy Citation
A person may not commit mortgage fraud.
Md. Code Ann., Real Prop. § 7-403 (2026)
Title 7. Mortgages, Deeds of Trust, and Vendor's Liens
Subtitle 4. Maryland Mortgage Fraud Protection Act
§ 7–403LinkCopy Citation
For the purpose of venue under this subtitle, a violation of this subtitle shall be considered to have been committed:
(1)
In the county in which the residential real property is located for which a mortgage loan is being sought;
(2)
In the county in which an act was performed in furtherance of the violation;
(3)
In the county in which a person alleged to have violated this subtitle had control or possession of any proceeds of the violation;
(4)
If a closing occurred, in the county in which the closing occurred; and
(5)
In the county in which a document containing a deliberate misstatement, misrepresentation, or omission is filed in the land records.
Md. Code Ann., Real Prop. § 7-404 (2026)
Title 7. Mortgages, Deeds of Trust, and Vendor's Liens
Subtitle 4. Maryland Mortgage Fraud Protection Act
§ 7–404LinkCopy Citation
(a)
The Attorney General may seek an injunction to prohibit a person who has engaged or is engaging in a violation of this subtitle from engaging or continuing to engage in the violation.
(b)
The court may enter any order or judgment necessary to:
(1)
Prevent the use by a person of any prohibited practice;
(2)
Restore to a person any money or real or personal property acquired from the person by means of any prohibited practice; or
(3)
Appoint a receiver in the case of a willful violation of this subtitle.
(c)
In any action brought by the Attorney General under this section, the Attorney General is entitled to recover the costs of the action for the use of the State.
Md. Code Ann., Real Prop. § 7-404.1 (2026)
Title 7. Mortgages, Deeds of Trust, and Vendor's Liens
Subtitle 4. Maryland Mortgage Fraud Protection Act
§ 7–404.1LinkCopy Citation
(a)
The Commissioner may enforce the provisions of this subtitle by exercising any of the powers provided under §§ 2–113 through 2–116 of the Financial Institutions Article.
(b)
(1)
The Commissioner may seek an injunction to prohibit a person who has engaged or is engaging in a violation of this subtitle from engaging or continuing to engage in the violation.
(2)
The court may enter any order or judgment necessary to:
(i)
Prevent the use by a person of any prohibited practice;
(ii)
Restore to a person any money or real or personal property acquired from the person by means of any prohibited practice; or
(iii)
Appoint a receiver in case of willful violation of this subtitle.
(3)
In any action brought by the Commissioner under this subsection, the Commissioner is entitled to recover the costs of the action for the use of the State.
(c)
The Commissioner may enforce the provisions of this subtitle by requiring a violator to take affirmative action to correct the violation including the restitution of money or property to any person aggrieved by the violation.
(d)
The Commissioner may:
(1)
Investigate violations of this subtitle; and
(2)
Aid any other unit of State government that has regulatory jurisdiction over the business activities of the violator.
(e)
The Commissioner may cooperate in the investigation and prosecution of any violation of this subtitle with the Office of the Attorney General, the State’s Attorney, or any other unit of law enforcement.
Md. Code Ann., Real Prop. § 7-405 (2026)
Title 7. Mortgages, Deeds of Trust, and Vendor's Liens
Subtitle 4. Maryland Mortgage Fraud Protection Act
§ 7–405LinkCopy Citation
(a)
The Attorney General and the State’s Attorney are authorized to conduct the criminal investigation and prosecution of all cases of mortgage fraud under this subtitle.
(b)
The Attorney General or the State’s Attorney, as appropriate, shall promptly report a conviction under this subtitle to the unit of State government that has regulatory jurisdiction over the business activities of the person convicted.
Md. Code Ann., Real Prop. § 7-406 (2026)
Title 7. Mortgages, Deeds of Trust, and Vendor's Liens
Subtitle 4. Maryland Mortgage Fraud Protection Act
§ 7–406LinkCopy Citation
(a)
(1)
In addition to any action authorized under this subtitle and any other action otherwise authorized by law, a person may bring an action for damages incurred as the result of a violation of this subtitle.
(2)
A person may bring an action for damages under this section:
(i)
Without having to exhaust administrative remedies under this subtitle; and
(ii)
Regardless of the status of an administrative action or a criminal prosecution, if any, under this subtitle.
(b)
A person who brings an action under this section and who is awarded damages may also seek, and the court may award, reasonable attorney’s fees.
(c)
If the court finds that the defendant violated this subtitle, the court may award damages equal to three times the amount of actual damages.
Md. Code Ann., Real Prop. § 7-407 (2026)
Title 7. Mortgages, Deeds of Trust, and Vendor's Liens
Subtitle 4. Maryland Mortgage Fraud Protection Act
§ 7–407LinkCopy Citation
(a)
Except as provided in subsections (b) and (c) of this section, a person who violates this subtitle is guilty of a felony and on conviction is subject to a fine not exceeding $5,000 or imprisonment not exceeding 10 years or both.
(b)
If a violation involves a victim who is a vulnerable adult as defined under § 3–604(a) of the Criminal Law Article, a person who violates this subtitle is guilty of a felony and on conviction is subject to a fine not exceeding $15,000 or imprisonment not exceeding 15 years or both.
(c)
If a violation involves engaging or participating in a pattern of mortgage fraud or a conspiracy or endeavor to engage or participate in a pattern of mortgage fraud, a person who violates this subtitle is guilty of a felony and on conviction is subject to a fine not exceeding $100,000 or imprisonment not exceeding 20 years or both.
(d)
(1)
A person convicted of violating this subtitle shall pay restitution to any person damaged by the violation.
(2)
Restitution shall be ordered in addition to a fine or imprisonment or both.
(e)
Each residential real property transaction subject to a violation of this subtitle constitutes a separate offense, and shall not merge with any other crimes set forth in the Criminal Law Article.
(f)
A person who violates this subtitle is subject to § 5–106(b) of the Courts Article.
Md. Code Ann., Real Prop. § 7-408 (2026)
Title 7. Mortgages, Deeds of Trust, and Vendor's Liens
Subtitle 4. Maryland Mortgage Fraud Protection Act
§ 7–408LinkCopy Citation
(a)
All real and personal property used or intended for use in the course of, derived from, or realized through a violation of this subtitle shall be subject to forfeiture to the State.
(b)
The Attorney General and the State’s Attorney are authorized to commence forfeiture proceedings under this subtitle.
(c)
The forfeiture of property under this subtitle shall be subject to Title 13, Subtitle 4 of the Criminal Procedure Article.
Md. Code Ann., Real Prop. § 7-409 (2026)
Title 7. Mortgages, Deeds of Trust, and Vendor's Liens
Subtitle 4. Maryland Mortgage Fraud Protection Act
§ 7–409LinkCopy Citation
This subtitle may be cited as the Maryland Mortgage Fraud Protection Act.