Regulation .07 Financing Agreements.
Regulation .07 Financing Agreements.LinkCopy Citation
A.
For purposes of Commercial Law Article, §§12-125, 12-922, and 12-1022, Annotated Code of Maryland:
(1)
An application is completed at the time of initial application;
(2)
Settlement occurs when the loan proceeds are disbursed by the person conducting settlement to the borrower or to third parties as required by the lender's instructions;
(3)
Settlement has not occurred when the loan proceeds are disbursed from the lender to the custody of an escrow agent pending expiration of a time period during which the borrower is entitled by statute to rescind the loan.
B.
In a loan transaction where there is a separate broker and lender, only one financing agreement need be provided to the applicant.
C.
A financing agreement need not be provided under Commercial Law Article, §12-125, 12-922, or 12-1022, Annotated Code of Maryland, if within 10 business days after initial application the:
(1)
Loan is closed; or
(2)
Applicant receives a written commitment.