Document Update: Cx4565 MD Broker Agreement

According to MD Commercial Law §12-805(d)(1) a “Finder’s fee” is not allowed to be charged unless it is pursuant to a written agreement between the mortgage broker and the borrower.  The law in §12-801(d) defines the term “Finder’s fee” as “any compensation or commission directly or indirectly imposed by a broker and paid by or on behalf of the borrower for the broker’s services in procuring, arranging, or otherwise assisting a borrower in obtaining a loan or advance in money.” To be more precise in our calculation on Cx4565 (MD Broker Agreement) we have updated our calc to use Field 41021 “Total Fees Paid to Broker as a Percent” if this field is being used and sent to us, otherwise we will use Field 6713 “Loan Originator/Broker Compensation Percent”. Please note that Field 41021 is not as widely used in our system. If clients are wanting to use this field, please work with your CRM to ensure its effective use.

This change is available on Stage servers for testing and will be in effect on December 8, 2023.  Please direct questions to client support at 800.467.3584.

DR-147094

The preceding is for informational purposes only and is not and may not be construed as legal advice. No third party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.