Code of Maryland Regulations
Title 09 - MARYLAND DEPARTMENT OF LABOR
Subtitle 03 - COMMISSIONER OF FINANCIAL REGULATION
Chapter 09.03.06 - Mortgage Lending
Section 09.03.06.11 - Closing

Universal Citation: MD Code Reg 09.03.06.11

Current through Register Vol. 51, No. 19, September 20, 2024

A. Disbursement of Loan Proceeds.

(1) A licensee shall disburse all loan proceeds in a timely manner as provided in the loan documents.

(2) Disbursement of all loan proceeds to a third-party closing agent is deemed compliance with this section.

B. A licensee may not collect a separate settlement fee in a loan when closing is conducted by:

(1) The lender;

(2) A subsidiary of the lender;

(3) A sister corporation of the lender;

(4) An owner or part owner of the lender;

(5) A partner of the lender; or

(6) A director, officer, or employee of the lender.

C. Duties on Failure to Close.

(1) If a loan transaction is not closed, the licensee shall, upon written request by the applicant, return to the applicant:
(a) All original documents and other materials which were supplied to the licensee by the borrower; and

(b) If paid for by the borrower, a copy of the appraisal report.

(2) Section C(1)(b) of this regulation does not apply to any portion of an appraisal report which any federal law or regulation prohibits the licensee from releasing to the applicant.

(3) The licensee may retain copies of all documents returned to the borrower.

(4) This section does not apply to a written application for a loan.

Disclaimer: These regulations may not be the most recent version. Maryland may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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