§ 12-407.1
236 words·~1 min read·
/md/commercial-law/12-407-1·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§12–407.1.
(a)The Commissioner shall develop and prepare a form that each lender shall furnish to an applicant for a secondary mortgage loan. The form shall state the following:
(1)The purpose for which the loan is to be used;
(2)A disclosure that, if the loan is for a commercial purpose, the borrower shall forfeit certain rights.
(b)The form shall state that the forfeiture of rights includes:
(1)The borrower’s right to pay a loan origination fee that, when combined with any finder’s fee imposed by a mortgage broker under § 12-804 of this title, does not exceed the greater of:
(i)$500 or 10 percent of the net proceeds of a commercial loan of $75,000 or less made under this subtitle; or
(ii)$250 or 10 percent of the net proceeds of any other loan made under this subtitle;
(2)The borrower’s right not to pay any other commission, finder’s fees, or points for obtaining, procuring, or placing a loan; and
(3)The borrower’s right not to pay an interest rate greater than 24 percent.
(c)This section does not prevent a lender from imposing fees, discounts, points, or other charges whenever permitted under § 12-404.1 of this subtitle concerning mortgage loan programs of state and federal agencies.
(d)Compliance with the provisions of this section does not relieve the lender or mortgage broker from the provisions of § 12-401(i)(3) of this subtitle.