Previously, we announced the passage of the “Maryland Financial Consumer Protection Act of 2018” which, inter alia, “authoriz[es] a lender to elect to make a certain loan to a borrower under certain circumstances.”
Under Md. Com. Law §§ 12-101.1, 12-402.1, 12-913.1, & 12-1013.1, a lender may – by election – make a loan subject to either Subtitles 1, 3, 4, 9, or 10 of Maryland’s Commercial Law. Each subtitle has its own peculiarities regarding loans, including separate disclosure requirements.
Ibid. §§ 12-913.1 & 12-1013.1, which are not new sections, permit lenders to make loans subject to Subtitles 9 or 10, respectively. We have provided two forms for such an election (“MD Addendum to HELOC Agreement” [Cx17451] and “MD Addendum to Promissory Note” [Cx17452]; see https://compliance.docutech.com/2014/01/02/new-documents-md-addendum-to-heloc-agreement-cx17451-and-md-addendum-to-promissory-note-cx17452/).
Based on our reports, neither of these documents are printing based on their generic print configurations. This indicates a lack of demand from our clients to make such elections. We will not, therefore, proceed to create any new election documents based on the new provisions of the Act, unless clients specifically request them. We will, however, add references to these requirements in the next edition of our State Disclosure Matrix.
If you have any questions or requests on this matter, please contact Client Support at 1.800.497.3584.