Document Updates: MD Loan Commitment (Cx4174) and MD Financing Agreement (Cx2171)
Jul 16, 2026
Maryland Commercial Law § 12-125(b)(2)(ii) requires a financing agreement to include an explanation of the type of mortgage loan being offered. Additionally, § 12-125(c)(1) requires that if any provision of the financing agreement is subject to change after execution, the lender must provide the borrower with a commitment that restates all provisions of the financing agreement that remain unchanged.
To enhance clarity and ensure a dedicated section for the required explanation, we are updating the Type of Mortgage section in the Maryland Financing Agreement (Cx2171) and Maryland Loan Commitment (Cx4174) to identify the loan type as a Home Equity Line of Credit (HELOC).
We are also adding a new Explanation of Loan Type section that provides a clear description of the HELOC product, including its credit limit, advance period, and repayment period.
These changes are available for testing on Stage & Stage 2 servers and will take effect on July 24, 2026. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
COM-7541
DR-226997
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.
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.