1. A. A licensee may not retain a fee, or any portion of a fee, collected from the borrower if the fee is represented as a charge to be paid to a third party for services in connection with the loan.

2. B. Timing of Collection.

   1. (1) If a financing agreement is required under Commercial Law Article, §12-125, 12-922, or 12-1022, Annotated Code of Maryland, and these regulations, a licensee may not collect any fee from the applicant before providing the financing agreement executed by the lender.
   2. (2) Notwithstanding §B(1) of this regulation, a licensee may collect fees which are to be fully paid to third parties for services in connection with the loan, before providing a financing agreement.

3. C. A licensee may condition the making of a loan on the real estate seller's paying certain fees only if:

   1. (1) The seller has agreed in writing to pay those fees; or

   2. (2) At the time the borrower elects the type of loan applied for, the licensee discloses in writing:

      1. (a) Fees which the seller may be required to pay,
      2. (b) The fact that the borrower has the responsibility for informing the seller about the fees, and
      3. (c) The fact that the loan will not be made unless the seller, or someone other than the borrower, pays those fees.

4. D. If a licensee fails to comply with §C of this regulation, the licensee may not:

   1. (1) Fail to close the loan solely because the seller refuses at closing to pay certain fees; or
   2. (2) Threaten at closing to refuse to make the loan unless the seller pays certain fees.

Authority: Business Regulation Article, §2-105; Financial Institutions Article, §§2-105.1, 11-503,
11-503.1, 11-505, 11-506(a) and (c)(1), 11-507, 11-508(g), 11-511, 11-511.1, 11-513(a), and 11-515(c);
Real Property Article, §3-104.1; Annotated Code of Maryland

Effective date:

Regulations .01—.15, 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 .01—.16, Mortgage Lenders, adopted effective February 19, 1990 (17:3 Md. R. 297)

Regulation .06A amended effective July 31, 1995 (22:15 Md. R. 1119)

Regulation .08B amended effective June 16, 1997 (24:12 Md. R. 864)

Chapter recodified from COMAR 09.04.06 to COMAR 09.03.06, April, 1998

Regulation .01 amended effective March 15, 2010 (37:5 Md. R. 427)

Regulation .02B amended effective November 3, 2008 (35:22 Md. R. 1956); January 1, 2009 (35:26 Md. R. 2247); March 15, 2010 (37:5 Md. R. 427)

Regulation .03 amended as an emergency provision effective July 1, 2009 (36:15 Md. R. 1158); emergency status extended at 37:3 Md. R. 170; emergency status expired March 15, 2010

Regulation .03 amended effective March 15, 2010 (37:5 Md. R. 427)

Regulation .03A amended effective November 3, 2008 (35:22 Md. R. 1956)

Regulation .03I adopted effective November 3, 2008 (35:22 Md. R. 1956)

Regulation .03J adopted effective January 1, 2009 (35:26 Md. R. 2247)

Regulation .04B amended as an emergency provision effective February 19, 2008 (35:6 Md. R. 695); emergency status extended at 35:18 Md. R. 1599; emergency action expired August 24, 2008

Regulation .04B amended effective August 25, 2008 (35:17: Md. R. 1485); November 3, 2008 (35:22 Md. R. 1956); March 15, 2010 (37:5 Md. R. 427)

Regulation .07B amended effective March 15, 2010 (37:5 Md. R. 427)

Regulation .07D adopted effective November 3, 2008 (35:22 Md. R. 1956)

Regulation .15G adopted effective June 15, 1998 (25:12 Md. R. 946)

Regulation .15G repealed effective March 15, 2010 (37:5 Md. R. 427)

Regulation .17 adopted effective June 26, 2000 (27:12 Md. R. 1138)

Regulation .17 amended effective March 15, 2010 (37:5 Md. R. 427)

Regulation .17B, G amended effective September 2, 2013 (40:17 Md. R. 1419)

Regulation .17C amended effective April 29, 2002 (29:8 Md. R. 697)

Regulation .18 adopted effective February 17, 2003 (30:3 Md. R. 178)

Regulation .18B, C amended effective March 15, 2010 (37:5 Md. R. 427)

Regulation .19 adopted effective October 1, 2004 (31:19 Md. R. 1431)

Regulation .19 repealed effective March 15, 2010 (37:5 Md. R. 427)

Regulation .20 adopted effective November 3, 2008 (35:22 Md. R. 1956)

Regulation .21 adopted effective November 3, 2008 (35:22 Md. R. 1956)

Regulation .23 adopted effective January 1, 2009 (35:26 Md. R. 2247)

Regulation .23A amended effective July 1, 2016 (43:11 Md. R. 633)

Chapter revised effective October 4, 2019 (46:19 Md. R. 813)

Regulation .02B amended effective June 27, 2022 (49:13 Md. R. 688); February 3, 2025 (52:2 Md. R. 67)

Regulation .02B amended as an emergency effective December 18, 2024 (52:1 Md. R. 17); emergency action expired June 16, 2025

Regulation .04 amended effective October 4, 2021 (48:20 Md. R. 851); February 3, 2025 (52:2 Md. R. 67)

Regulation .04A amended as an emergency effective December 18, 2024 (52:1 Md. R. 17); emergency action expired June 16, 2025

Regulation .06B amended effective February 3, 2025 (52:2 Md. R. 67)

Regulation .16 amended effective February 3, 2025 (52:2 Md. R. 67)

Regulation .26 adopted effective June 27, 2022 (49:16 Md. R. 688)

Regulation .27 adopted effective June 27, 2022 (49:16 Md. R. 688)

Regulation .28 adopted effective December 11, 2023 (50:24 Md. R. 1041)