Md. Code Ann., Real Prop. § 3-104.1(b) (West 2012) requires both the license number of the mortgage originator who originated a loan (who is licensed under the so-called “Mortgage Originator Law”) and of the mortgage lender who makes the loan (who is licensed under the Maryland Mortgage Lender Law) to be disclosed in the security instrument.
If the originator is exempt from licensing under the “Mortgage Originator Law” (Title 11, Subtitle 6 of Maryland’s Financial Institutions Article), he must submit an affidavit for recording in which he affirms that he is not licensed under such law, in lieu of disclosing his license number. The same applies to a mortgage lender who is exempt from licensing under the Maryland Mortgage Lender Law (Title 11, Subtitle 5 of Maryland’s Financial Institutions Article).
Maryland administrative law prescribes the form of the affidavit in Md. Code Regs. 09.03.11.02(B), of which Cx13984 is a duplicate. This form promulgates four types of affirmations:
1. An affirmation by the originator that he is exempt from licensing under the “Mortgage Originator Law”;
2. An affirmation by the mortgage lender that he is exempt from licensing under the Maryland Mortgage Lender Law;
3. An affirmation by the mortgage lender that he is exempt from licensing under the Maryland Mortgage Lender Law and that his employee, who originated the loan, is also exempt from licensing under the “Mortgage Originator Law”; and
4. An affirmation by a mortgage broker that his employee, who originated the loan, is exempt from licensing under the “Mortgage Originator Law.”
In order to comply with these laws, we provide not only Cx13984, but also disclose on the last page of our Maryland security instruments the license number of the originator and the mortgage lender.
In order to be more precise and only disclose the license numbers when required, as well as to fill out the affirmations based on loan data rather than manually, we will be making the following changes:
1. For Cx13984, we will have the proper affirmations checked and filled out based on the following four new fields:
a. Affidavit of Individual Mortgage Originator (dt_AffidavitOfIndividualMortgageOriginator/@v; Affirmation #1)
b. Affidavit of Lender (dt_AffidavitOfLender/@v; Affirmation #2);
c. Affidavit of Lender on Its Own Behalf and Its Employee Who Originated Loan (dt_AffidavitOfLenderOnOwnBehalfAndEmployee/@v; Affirmation #3); and
d. Affidavit of Mortgage Broker (Affirmation #4).
If any of these fields are set to “Yes,” the corresponding affirmations will be filled out and checked. Please note that it is possible to have more than one affirmation executed. For example, it is possible to have a loan originated by an independent contractor and then have it made by a credit union, both of whom are exempt from licensing under both laws, yet the independent contractor is not considered an employee of the credit union. In such a case, Affirmations #1 and #2 would need to be checked.
2. Also based on these fields, the license number sections in all of Maryland’s generic security instruments will either print or not print, as follows:
a. The Maryland Mortgage Lender Name and License Number section will print by default on the security instrument, unless either or both the “Affidavit of Lender” or “Affidavit of Lender on Its Own Behalf and Its Employee Who Originated Loan” fields are set to “Yes.”
b. The Maryland Mortgage Originator Name and License Number section will print by default, unless any or all the “Affidavit of Individual Mortgage Originator,” “Affidavit of Lender on Its Own Behalf and Its Employee Who Originated Loan,” and “Affidavit of Mortgage Broker” fields are set to “Yes.”
This change will take effect on April 12, 2013. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
April 5, 2013
DR 134324
Update: After further review, we have decided to remove the notary block associated with field 60451 “Affidavit of Individual Mortgage Originator” from Cx13984.
DR 327791