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 […]
Section 12-1304 – Closing on Mortgage Loan Without Notice Prohibited
A lender may not close on a mortgage loan unless the lender has provided to the borrower the notice required under § 12–1303 of this subtitle.