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New
Regulations - November 2008
The
Maryland Association of Mortgage Professionals would
like to inform you of three new sets of regulations
that were finalized last week and went into effect
November 3, 2008. The basic provisions of the
regulations are listed in this article, but we
suggest you read the full versions online by clicking
on the headings below.
If
you have any questions please contact Megan Mason
at MAMP headquarters at meganmason@assnhqtrs.com.
MORTGAGE
LENDERS
- Factors
determining whether new applicants have at least
3 years of experience in the industry
- Requiring
licensees to designate the type of mortgage-related
activities they will engage in
- Requiring
licensees to maintain records of foreclosure
actions
- Requiring
deeds of trust to include the name and license
number of the licensee and the name and license
number of the mortgage originator that originated
the loan
- Imposing
a duty of good faith and fair dealing on licensees
- Mortgage
businesses will have to prepare a Net Tangible
Benefit form that will be signed by the borrower.
- Requiring
licensees to include information relating to
the risks and features of higher-priced and
nontraditional mortgage loans in promotional
and marketing materials and communications.
And requiring licensees acting as lenders that
offer those types of loans to adopt risk management
practices and implement control systems. Disclosures
regarding payment shock, negative amortization,
prepayment penalties, balloon payments, escrow
payments, and reduced documentation loans are
required.
MORTGAGE
ORIGINATORS
- Requiring
the written examination for mortgage originators
be developed and administered by the Commissioner
of Financial Regulation, effective February
1, 2009
- Impose
a duty of good faith and fair dealing on licensees
- Set
forth factors to determine whether an applicant
for a license has at least 3 years of experience
in the mortgage lending business
CREDIT
AND OTHER REGULATION
- Impose
a duty to report acts, or suspected acts, of
fraud, theft, or forgery and to report to the
Commissioner any felony convictions or misdemeanor
convictions for fraud or theft.
- Requiring
licensees to provide disclosures to borrowers
in connection with mortgage loans that include
the following provisions: a balloon payment,
the omission of an escrow account, or mandatory
binding arbitration.
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Light St., Baltimore, MD 21230
TEL: (410) 752-6262 | FAX: (410) 752-8295
EMAIL: MAMP@assnhqtrs.com
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