Code of Maryland Regulations
Title 09 - MARYLAND DEPARTMENT OF LABOR
Subtitle 03 - COMMISSIONER OF FINANCIAL REGULATION
Chapter 09.03.06 - Mortgage Lending
Section 09.03.06.13 - Expedition
Universal Citation: MD Code Reg 09.03.06.13
Current through Register Vol. 51, No. 19, September 20, 2024
A. A licensee shall act expeditiously in processing and underwriting loan applications.
B. A licensee may not:
(1) Issue any agreement that locks in or sets
an interest rate and points on the loan applied for, if the licensee knows that
the time period established in the agreement after which the rate may change is
not sufficient for the loan to be closed;
(2) Accept more applications than the
licensee can reasonably expect to be processed and closed within established
lock-in periods; or
(3) Delay the
settlement of a loan with the specific intent to, and for the purpose of:
(a) Increasing any cost to the borrower, or
(b) Avoiding any legal obligation
to the borrower.
C. Ordering Underwriting Documents-----Timing.
(1) This section
applies only to:
(a) Purchase money mortgage
loan applications; and
(b) Loan
applications in which the licensee establishes a deadline for closing, after
which the loan terms offered to the applicant may change.
(2) If a licensee fails to close a loan by
the expiration date of a contract of sale supplied by the borrower, or by a
deadline for closing established by the licensee, there is a rebuttable
presumption that the licensee failed to process the loan expeditiously if the
licensee fails to order:
(a) A credit report
and property appraisal within 5 business days after initial application; or
(b) Within 5 business days, other
reports from third parties needed for underwriting after discovery that the
reports will be needed.
(3) This section does not apply to:
(a) Verification of employment; and
(b) Verification of deposits.
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