New Maryland Mortgage Law
As of January of 2007, the state of Maryland passed a new law regarding mortgage originators. This law requires that all home loan originators employed by mortgage brokers in Maryland must be licensed. In order to receive said license, a candidate must complete an application, undergo a thorough criminal background check, and if they have less than three years of experience in the mortgage business, they must take a forty hour course regarding the regulations, ethics, and trade information. A two-year license is $300, and there is also a one-time fee of $100. If the forty-hour course is necessary, it may cost up to $500. Some mortgage lenders are also required to acquire this license for operation, however, those loan originators who work for licensed mortgage brokers and banks are exempt because they are covered by the Old Line State’s Department of Labor, Licensing and Regulations, or DDLR.
Under state law, it is now a felony to operate without this new license, punishable by a $25,000 fine and up to five years in jail, but even with such a consequence some loan originators continue to attempt to dodge the inconvenience of obtaining a license. According to the deputy commissioner of the DLLR, there are over twelve thousand Maryland mortgage and loan originators and the Department of Labor has only received eight thousand license applications. One way that some companies are dodging the bullet is by getting a license for only one of the loan officers and funneling the paperwork for all of the other employees through their signature. These unlicensed employees then continue doing their own paperwork and loan origination but simply refrain from signing any of the documents.
It is the belief of some companies under violation that the State of Maryland is too understaffed to be able to enforce this law, but the state has begun making examples of those ignoring the law by avid investigation and prosecution. The State is also coming down on those who are waiting too long to submit their applications. Though the punishment level may seem severe, Maryland also issues a warning letter to those in question requiring them to cease doing business after December 1st.
If you are looking for a Maryland mortgage broker or loan provider, it is important to make sure they are open and honest with the state and that they require all of their loan originators to have the proper licensing to operate within the State of Maryland. This licensing is intended to protect the public by providing them with proper loan origination.
About the Author: Peter Dellane is the President of Ability Mortgage Group, LLC, A leading Maryland Mortgage broker company offering low costs zero point mortgages. For more information on Mortgage Maryland rates and programs please visit www.marylandsmortgage.com.
Under state law, it is now a felony to operate without this new license, punishable by a $25,000 fine and up to five years in jail, but even with such a consequence some loan originators continue to attempt to dodge the inconvenience of obtaining a license. According to the deputy commissioner of the DLLR, there are over twelve thousand Maryland mortgage and loan originators and the Department of Labor has only received eight thousand license applications. One way that some companies are dodging the bullet is by getting a license for only one of the loan officers and funneling the paperwork for all of the other employees through their signature. These unlicensed employees then continue doing their own paperwork and loan origination but simply refrain from signing any of the documents.
It is the belief of some companies under violation that the State of Maryland is too understaffed to be able to enforce this law, but the state has begun making examples of those ignoring the law by avid investigation and prosecution. The State is also coming down on those who are waiting too long to submit their applications. Though the punishment level may seem severe, Maryland also issues a warning letter to those in question requiring them to cease doing business after December 1st.
If you are looking for a Maryland mortgage broker or loan provider, it is important to make sure they are open and honest with the state and that they require all of their loan originators to have the proper licensing to operate within the State of Maryland. This licensing is intended to protect the public by providing them with proper loan origination.
About the Author: Peter Dellane is the President of Ability Mortgage Group, LLC, A leading Maryland Mortgage broker company offering low costs zero point mortgages. For more information on Mortgage Maryland rates and programs please visit www.marylandsmortgage.com.
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