• Commercial Law Article
  • August 10, 2017 | Authors: Neil J. Schechter; Timothy D. A. Chriss; David H. Fishman; Y. Jeffrey Spatz; Edward J. Levin; Seth M. Rotenberg; Searle E. Mitnick; William D. Shaughnessy; Peter B. Rosenwald; Danielle Stager Zoller
  • Law Firm: Gordon Feinblatt LLC - Baltimore Office
  • 25. Chapter 484 (SB 392)

    Credit Regulation - Closed End Credit Loans - Elimination of Duplicative Disclosures
    Commercial Law Article repealing and reenacting with amendments Sections 12–125 and 12–1022

    Since 1989 Maryland has required licensed mortgage lenders and brokers to provide certain disclosures, commonly referred to as the Maryland financing agreement and Maryland commitment. Failure to provide these disclosures can lead to regulatory penalties and civil liability. Chapter 484 recognizes that much, if not all, of the information required to be disclosed in the Maryland financing agreement and Maryland commitment is found in required federal Truth in Lending Act and Real Estate Settlement Procedures Act integrated disclosures (TRID) for closed end mortgage credit. This Act sets forth that disclosures provided by a licensee to a borrower in compliance with TRID will satisfy requirements under Maryland law to furnish a Maryland financing agreement or Maryland commitment. This Act directs the Commissioner of Financial Regulation to monitor TRID requirements implemented by the federal Consumer Financial Protection Bureau and notify the Governor and the General Assembly if the Commissioner determines that federal disclosure requirements are modified or proposed to be modified to be less stringent or less consumer friendly.

    Practice Point: TRID does not apply to some mortgages, such as reverse mortgages or open end lines of credit (HELOCs), and Maryland disclosures for those loans are not changed. Licensees may want to contact their forms providers and find out if changes will be implemented to reflect the elimination of certain unique Maryland disclosures for loans subject to TRID.

    Effective July 1, 2017.