Section 12-124.1 – Homeowner Equity Protection
(a) (1) In this section the following words have the meanings indicated. (2) “Covered loan” means a mortgage loan made under this subtitle that meets the criteria for a loan subject to the federal Home Ownership Equity Protection Act set forth in 15 U.S.C. § 1602(bb), as modified from time to time by Regulation Z, 12 C.F.R. Part […]
Section 12-125 – Financing Agreements
(a) (1) In this section the following words have the meanings indicated. (2) “Borrower” means a person who makes an application for a loan secured by a first mortgage or first deed of trust on a 1– to 4–family home to be occupied by the borrower as the borrower’s primary residence. (3) “Commitment” means a written, specific, binding agreement […]
Section 12-126 – Prepayment of Outstanding Unpaid Indebtedness
(a) This section applies only to a loan that: (1) Is secured by a mortgage or deed of trust on the borrower’s primary residence; and (2) Is not a commercial loan. (b) Except to the extent expressly provided otherwise in the loan contract, a borrower may prepay all or part of outstanding unpaid indebtedness under a loan at any […]
Section 12-127 – Lender to Consider Homeowner’s Ability to Repay Loan
(a) (1) In this section the following words have the meanings indicated. (2) “Fully indexed rate” means the index rate, as defined in the mortgage loan documents, prevailing at the time the mortgage loan is approved by the lender, plus the margin that will apply after the expiration of an introductory interest rate. (3) (i) “Mortgage loan” has the meaning […]
Section 12-103 – Other Permitted Rates of Interest; Licensing Requirements
(a) (1) Except as provided in subsections (b), (c), (d), (e), and (f) of this section, a lender may charge interest at an effective rate of simple interest not in excess of 8 percent per year on the unpaid principal balance of a loan if there is a written agreement signed by the borrower which sets forth […]
Section 12-104 – Interest Not Considered Usurious
Interest at a rate otherwise allowed by this subtitle is not usurious solely because of any one or more of the following: (1) For a period of less than one year, interest is calculated on the premise that there are 360 days in the year and 30 days in each month, which may include the date […]
Section 12-105 – Charges Not Considered Interest
(a) In this section, “mortgage loan” has the meaning stated in § 11–501 of the Financial Institutions Article. (b) Fees and charges collected at the direction of and actually paid to a government or governmental agency may be collected and are not interest under this subtitle. (c) Except as provided in subsection (d) of this section, if the […]
Section 12-106 – Statements to Be Furnished by Lender
(a) This section does not apply to any loan: (1) Described in § 12-103(e) of this subtitle; or (2) Made under Title 18, Subtitle 10 of the Education Article. (b) (1) Before the execution of a loan contract under this title, the lender shall furnish to the borrower a written statement which sets forth: (i) The total principal amount of the […]
Section 12-106.1 – Requiring False Statement That Loan Is Commercial Loan
(a) A person may not require a borrower, as a condition to receiving a loan, to make any false or misleading statement or characterization that a loan is a commercial loan under § 12–101(c), § 12–103(e), or § 12–105 of this subtitle or § 12–401(i)(3) of this title if the loan is not a commercial loan. […]
Section 12-107 – Computing Interest Rate if Charge Assessed at Inception of Loan
If a charge or fee considered interest under this subtitle is charged at or before the inception of a loan contract, the effective rate of simple interest permitted to be charged by §§ 12-102 and 12-103 of this subtitle, and required to be disclosed by § 12-106 of this subtitle shall be determined in the […]