Md. Code Regs. 09.03.06.11

Current through Register Vol. 51, No. 12, June 14, 2024

Section 09.03.06.11 - Closing

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.

Md. Code Regs. 09.03.06.11

Regulations .11, Code of Conduct_Mortgage Lenders, adopted as an emergency provision effective July 1, 1989 (16:14 Md. R. 1564); emergency status extended at 16:26 Md. R. 2782 (Emergency provisions are temporary and not printed in COMAR)
Regulations .11, Mortgage Lenders, adopted effective February 19, 1990 (17:3 Md. R. 297); recodified from .10 effective 46:19 Md. R. 813, eff. 10/4/2019