§ 12-1206
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/md/commercial-law/12-1206·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§12–1206.
(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 to purchase title insurance, hazard, flood, or other peril insurance, and any other financial or insurance product that is required for reverse mortgage loans insured under 12 U.S.C. § 1715z–20.
(b)A lender or an arranger of financing may not refer a borrower to any person for the purchase of an annuity or any other financial or insurance product before the later of:
(1)The closing of the reverse mortgage loan; or
(2)The expiration of the borrower’s right to rescind the reverse mortgage loan agreement.
(c)This section does not prohibit a lender or an arranger of financing from offering to a borrower, or referring a borrower to a person for the purchase of:
(1)Title insurance;
(2)Hazard, flood, or other peril insurance; or
(3)Other products that are customary under a reverse mortgage loan.