Md. Code Regs. 09.03.06.08

Current through Register Vol. 51, No. 25, December 13, 2024

Section 09.03.06.08 - Agreements with the Borrower

A. Written Agreements.

(1) Agreements between a borrower and a licensee shall be:

(a) In writing; and

(b) Provided promptly to the borrower following execution by all parties.

(2) Exact copies of original documents may be provided to the borrower to satisfy this section.

B. Agreements in Blank.

(1) A person may not obtain a borrower's or guarantor's signature on any of the following documents if blanks remain to be filled in after execution by the borrower:

(a) A note;

(b) A deed of trust;

(c) A mortgage;

(d) An affidavit by the borrower;

(e) Any written certification or statement by the borrower as to use of loan proceeds;

(f) Any other instrument granting a security interest in property;

(g) Any other document which constitutes a debt obligation of the borrower; and

(h) A finder's fee agreement required under Commercial Law Article, § 12-805, Annotated Code of Maryland.

(2) The prohibitions of §B(1) of this regulation do not apply to blanks for the signatures of a:

(a) Notary public;

(b) Witness who is not a borrower, guarantor, or obligor on the loan; or

(c) Person required to sign a certification or affidavit required by law for recordation.

C. Undisclosed Fees.

(1) Unless disclosed in written agreements signed by the borrower, a licensee may not, directly or indirectly, impose any fee or charge payable by or on behalf of the borrower.

(2) In this section "written agreements" includes all closing documents signed by the borrower.

(3) Compliance with applicable disclosures under 12 CFR §§ 1026.37 and 1026.38 shall be deemed compliance with §C(1) and (2) of this regulation.

(4) This section does not apply to changes in amounts collected to be placed in an escrow account maintained after the loan is made.

D. Security Instruments. Licensees shall comply with the requirements relating to security instruments to be recorded in connection with the inclusion of the name and licensee number of the mortgage lender and mortgage originator, or an affidavit in lieu thereof, as set forth in Real Property Article, § 3-104.1, Annotated Code of Maryland.

Md. Code Regs. 09.03.06.08

Regulations .08, Code of Conduct_Mortgage Lenders, adopted as an emergency provision effective July 1, 1989 (16:14 Md. R. 1564); emergency status extended at 16:26 Md. R. 2782 (Emergency provisions are temporary and not printed in COMAR)
Regulations .08, Mortgage Lenders, adopted effective February 19, 1990 (17:3 Md. R. 297)
Regulation .08B amended effective June 16, 1997 (24:12 Md. R. 864); amended and recodified from .07 effective 46:19 Md. R. 813, eff. 10/4/2019