Section 12-909.1 – Insurance Binders
(a) In this section, “binder” means a binder or other temporary contract of insurance as provided under § 12-106 of the Insurance Article. (b) A credit grantor shall comply with this section if the credit grantor: (1) Makes any loan secured by a first lien on any interest in owner-occupied residential real property; and (2) As a condition of […]
Section 12-804 – Fees Mortgage Broker Permitted to Charge
(a) A mortgage broker may charge a finder’s fee not in excess of 8 percent of the amount of the loan or advance. (b) In addition to a finder’s fee, a mortgage broker may charge a borrower for the actual cost of: (1) Any appraisal, credit report, condominium document, or subordination agreement document obtained by the mortgage broker […]
Section 12-910 – Charges for Default or Delinquency
(a) If the agreement governing a revolving credit plan permits, a credit grantor may: (1) For a nonconsumer borrower, charge a higher periodic percentage rate of interest on outstanding unpaid payments or portions of payments under the plan which are in default; and (2) For any borrower, impose: (i) A late or delinquency charge on payments or portions of […]
Section 12-805 – Payment of Finder’s Fee
(a) A mortgage broker may not receive any fee in the form of a note, mortgage, or other evidence of indebtedness. (b) Payment of the finder’s fee to the mortgage broker out of the proceeds of the loan is not considered as interest to the lender if the finder’s fee is not in excess of that permitted […]
Section 12-911 – Attorney’s Fees; Court or Other Collection Costs
(a) If a borrower defaults under the terms of a plan and the credit grantor refers the borrower’s account to an attorney who is not a salaried employee of the credit grantor for collection, the credit grantor may, if the agreement governing the revolving credit plan permits, charge and collect from the borrower a reasonable attorney’s […]
Section 12-806 – Refund of Finder’s Fee
A borrower is entitled to a refund of any finder’s fee paid to a mortgage broker if: (1) The loan transaction is not made to the borrower; or (2) The borrower exercises his right to rescind the loan transaction under the federal Truth in Lending Act or any similar federal or State law.
Section 12-807 – Violation of Subtitle
Any mortgage broker who violates any provision of this subtitle shall forfeit to the borrower the greater of: (1) Three times the amount of the finder’s fee collected; or (2) The sum of $500.
Section 12-808 – Circumstances Under Which Broker May Not Collect Fee
A licensed real estate broker, insurer, salesman, attorney-at-law, or agent thereof who arranges or procures a mortgage may not collect a finder’s fee if, in addition to acting as broker under this subtitle, he is also acting as a real estate broker, insurer, salesman, attorney-at-law, or agent thereof in connection with the subject property or […]
Section 12-809 – Circumventing 12-108
The provisions of this subtitle may not be used to circumvent the provisions of § 12–108 of this title.
Section 12-901 – Definitions
(a) In this subtitle the following words have the meanings indicated. (b) “Borrower” means a corporation, partnership, association, government or governmental subdivision or agency, trust, individual, or other entity receiving a loan or other extension of credit under this subtitle. (c) “Commercial loan” and “extension of credit for a commercial purpose” mean an extension of credit made: (1) Solely […]