Ch. 339 LAWS OF MARYLAND

and generally relating to loans secured by residential real property.

BY repealing and reenacting, with amendments,
Article - Commercial Law
Section 12-119 and 12-120
Annotated Code of Maryland
(1983 Replacement Volume and 1989 Supplement)

BY repealing and reenacting, without amendments,
Article——Commercial Law
Section 12 120
Annotated Code of Maryland
(1983 Replacement Volume and 1989 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

12-119.

(a) This section applies to any application for a loan, OTHER THAN A
COMMERCIAL LOAN, to be secured by a first mortgage or first deed of trust on a
borrower's primary residence.

(b) [Within 3 days after the application for a loan described in subsection (a) of
this section, or earlier upon request, any] ANY lender that imposes fees on borrowers
for settlement services, or document review services, performed by a lender-designated
attorney, OR WHO CONDITIONS SETTLEMENT ON THE EMPLOYMENT OF A
PARTICULAR ATTORNEY OR TITLE INSURANCE COMPANY UNDER §
12-120(C) OF THIS SUBTITLE, shall provide a prospective borrower with a written
notice stating:

(1) The lender's requirements concerning selection of an attorney, TITLE
INSURANCE COMPANY, or other person to perform settlement services relating to
the purchase of the real property;

(2) THE BORROWER'S ABILITY TO CHOOSE AN ATTORNEY OR
TITLE INSURANCE COMPANY UNDER § 12-120(C) OF THIS SUBTITLE; and

[(2)] (3) A good faith estimate of the fee or fees to be charged to the
borrower.

(c) If notice is required by this section[, a]:

(1) THE NOTICE SHALL BE PROVIDED AT THE TIME OF OR
WITHIN 3 DAYS AFTER THE APPLICATION FOR A LOAN, OR EARLIER
UPON REQUEST; AND

- 1168 -