17 Jun Maryland Legislative Update
The Maryland legislature recently amended its laws regarding licenses for mortgage loan originators and those governing permissible actions by the Community Development Administration in the Department of Housing and Community Development (“Administration”). All bills discussed in this memorandum are effective July 1, 2016.
MARYLAND SENATE BILL 87
The Maryland legislature recently repealed the law affecting licensing of mortgage originators and reenacted it with minor changes. The Commissioner of Financial Regulation in the Department of Labor, Licensing, and Regulation (“Commissioner”) issues the licenses in Maryland for mortgage originators. The definition of “Central Repository” is deleted, as well as references to Central Repository, and the sections are renumbered to account for this deletion.
The law currently provides for expedited licensing of a service member, veteran, or military spouse. This law previously provided that the Commissioner must waive the state criminal history records check in connection with application for license renewal or change of status for such individuals; it has been amended so that the Commissioner may waive any licensing requirements to the extent the waiver does not result in the failure to meet the minimum licensing standards under the law and adopted regulations.
To expedite the issuance of a license to a service member, veteran, or military spouse who holds a valid mortgage loan originator license in another state, the same amendment has been made as above.
The law no longer provides for expedited process for issuance of a license to an applicant who, within 45 days before the date of the application for the license, was employed as a registered mortgage loan originator. “Registered mortgage loan originator” means any individual who (i) is a mortgage loan originator; (ii) is registered with and maintains a unique identifier through the Nationwide Mortgage Licensing System and Registry; and (iii) is an employee of a depository institution or a depository institution’s owned and controlled subsidiary that is regulated by a federal banking agency, or is regulated by the Farm Credit Administration.
MARYLAND SENATE BILL 381
The Administration may now:
- Make, participate in making, and undertake a commitment for, among other things, financial assistance to a homeowner for making payments on the homeowner’s student loan debt in conjunction with the homeowner obtaining separate financial assistance from a source other than the Administration for purchasing the homeowner’s primary residence; and
- Purchase or commit to purchase from a mortgage lender a note, mortgage or partial interest in a note or mortgage that evidences a residential mortgage loan to a homeowner for purchasing the homeowner’s primary residence in conjunction with the homeowner obtaining separate financial assistance from the Administration for making payments on the homeowner’s student loan debt.
In providing financial assistance to a homeowner that includes the purchase of the homeowner’s primary residence and payments on the homeowner’s student loan debt, the Administration will give priority to selling residential property that is owned by the Administration.