On May 4, 2017, Gov. Larry Hogan (R-MD) signed into law S.B. 392 (2017) which amends the provisions under Maryland Code Ann., Com. Law §§ 12-125 & 12-1022 governing the issuance of a financing agreement and loan commitment.
Under both sections of law, a finance agreement must be provided to a borrower within 10 business days after the date of the loan application by lenders who offer “to make or procure a loan secured by a first mortgage or first deed of trust on a 1- to 4-family home to be occupied by the borrower” (Ibid. §§ 12-125[b][1] & 10-1022[b][1]). If the financing agreement is subject to change after its execution, the lender must then provide a commitment “at least 72 hours before the time of settlement agreed to by the parties” (Ibid. §§ 12-125[c][1] & 12-1022[c][1]) Borrowers may waive this timing requirement and accept the commitment “at settlement only if compliance with the 72-hour requirement is shown by the lender to be infeasible.” (Ibid. §§ 12-125[c][2] & 12-1022[c][2]) We provide Cx3278 for this waiver requirement.
These provisions have been amended to allow a Loan Estimate, provided by the lender, to be a compliant substitute for the financing agreement (Cx2171), as well as the Closing Disclosure to be a compliant substitute for the loan commitment (Cx4174). If these two documents are used as substitutes and a loan commitment is not issued, then a waiver for the timing requirements for the commitment is not applicable.
To streamline document packages, we will be adding the following configurations to Cx2171, Cx3782, and Cx4174:
- Integrated Disclosure Loan Indicator = No
- Occupancy = Primary Residence
Thus, these three documents will only print for first lien, primary residence, non-TRID loans (HELOCs and Regulation Z Subsection 3[h] loans). Clients who wish to use these documents under other conditions or to continue providing them in conjunction with the Integrated Disclosures may customize the print configurations.
This change will take effect on July 6, 2017. Note that while the provisions of S.B. 392 (2017) take effect on July 1, 2017, there is nothing prohibiting these documents from printing with the Integrated Disclosures. If you have any questions or concerns about this change, please contact Client Support 1.800.497.3584.
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