Pursuant to our yearly audit of state-specific disclosures, we will be making the following changes.
MD Consumer Loan Disclosure (Cx20027)
Md. Code Ann., Com. Law § 12-308(a) requires the following:
“(1) At the time a loan is made, the lender shall deliver to the borrower a statement in the English language which:
- Quotes §§ 12-306, 12-307, 12-312, and 12-313 of this subtitle, in their entireties; and
- Complies with § 12-106(b) of this title.
(2) If there are two or more borrowers, the lender:
- May deliver the statement to any one of the borrowers; and
- At the request of any other borrower, shall deliver a copy of the statement to that borrower within 10 days after the request.”
However, this disclosure is only required to be provided if the loan is made under the Maryland Consumer Loan Law – Credit Provisions, which loans are limited to “an original amount or value . . . not exceed[ing] $6,000.” (Ibid. § 12-303[a]) Due to this, Cx20027 will be available “upon request.” Once requested, it will print under the following conditions:
- Document Package Type = Closing
- Loan Amount Less Than or Equal to 6k = Yes
- State Code = Maryland
New Loan Program Notice on MD Settlement Services Disclosure (Cx2361)
Md. Code Regs. 09.03.06.08(A) requires the following (in relevant part):
“A mortgage lender:
(2) Which cannot guarantee acceptance of a borrower’s application into a particular loan program, shall disclose that fact to the applicant in writing.”
We will be configuring the following notice to print generically on Cx2361:
“Loan Program: The lender cannot guarantee acceptance of a borrower’s application into a particular loan program. The lender will keep the borrower informed of the progress of the processing of the loan application in the event that problems arise in the processing or underwriting of the loan which may delay closing. (Md. Code Regs. 09.03.06.08[A][2] & [3])”
We do note that these regulations were made pursuant to the Maryland Mortgage Lender Law (Md. Code Ann., Fin. Inst. §§ 11-501 through 11-524), which provides exemptions for certain entities, such as banks, trust companies, savings bank, or credit unions (see Ibid. § 11-502). However, the rest of Cx2361 is provided pursuant to Title 12 of Maryland’s Commercial Law, which does not provide for such exemptions.
Therefore, clients who are exempt under Maryland’s Mortgage Lender Law may (but do not have to) customize Cx2361 to configure the “Loan Program” disclosure to not print on Cx2361, so that they can continue to provide the remaining disclosures on the form to comply with other provisions of Maryland law.
These changes will take effect on November 28, 2015. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
DR 187128