US Lawyer Database

Section 12-1206 – Requirements for Purchasers

    (a)    (1)    Except as provided in paragraph (2) of this subsection, a lender or an arranger of financing may not require a borrower to purchase an annuity, a long–term care policy, or other financial or insurance product as a condition to obtaining a reverse mortgage loan.         (2)    A lender or an arranger of financing may require a borrower […]

Section 12-1207 – Counseling Agency Checklists

    (a)    On receiving an application for a reverse mortgage loan, a lender or an arranger of financing shall provide a prospective borrower with a written checklist, written in 12 point type or larger, advising the borrower to discuss the following issues with a counseling agency counselor:         (1)    How unexpected medical or other events that cause the borrower […]

Section 12-1208 – Violations; Penalties

    (a)    Except as otherwise provided in this section:         (1)    A lender or arranger of financing for a reverse mortgage loan insured under 12 U.S.C. § 1715z–20 that violates this subtitle is subject to the penalties provided in 12 U.S.C. § 1715z–20, and in any regulations and guidance adopted under 12 U.S.C. § 1715z–20; and         (2)    A lender or […]

Section 12-1301 – Definitions

    (a)    In this subtitle the following words have the meanings indicated.     (b)    “Borrower” has the meaning stated in § 11–501 of the Financial Institutions Article.     (c)    “Home buyer education or housing counseling” means instruction on preparing for home ownership, shopping for a home, obtaining a mortgage, loan closing, and life as a homeowner.     (d)    “Lender” means a person that […]

Section 12-1108 – New Rental-Purchase Agreements

    (a)    When a rental-purchase agreement is satisfied and replaced by a new rental-purchase agreement between the lessor and consumer, the lessor and consumer shall negotiate a new rental-purchase agreement requiring new disclosures.     (b)    The following do not require the negotiation of a new rental-purchase agreement:         (1)    The addition or return of rental property under a multiple-item agreement or […]

Section 12-1302 – Applicability of Subtitle

    (a)    This subtitle applies to any lender that makes a mortgage loan secured by owner–occupied residential real property located in the State.     (b)    This subtitle does not apply to:         (1)    A secondary mortgage loan;         (2)    An open–end or revolving home equity line of credit;         (3)    A construction loan;         (4)    An individual who takes back a deferred purchase money mortgage in connection […]

Section 12-1109 – Advertisements

    (a)    An advertisement for a rental-purchase agreement that refers to or states the dollar amount of any payment and the right to acquire ownership for any 1 specific item shall clearly and conspicuously state, as applicable:         (1)    That the transaction advertised is a rental-purchase agreement;         (2)    The total cost and the number of payments necessary to acquire ownership; […]

Section 12-1303 – Home Buyer Education or Housing Counseling

    (a)    Unless the lender is otherwise required by federal or State law to refer the borrower to housing counseling, a lender shall provide to a borrower a written notice, in the form specified in regulations adopted by the Department of Housing and Community Development, in consultation with the Commissioner of Financial Regulation, that includes:         (1)    A statement […]

Section 12-1110 – Penalties; Exceptions

    (a)    A person who willfully and intentionally violates any provision of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not to exceed $500 per violation.     (b)    For a violation of a provision of this subtitle, a consumer under a rental-purchase agreement may recover from the lessor committing the violation, or […]