HARRY HUGHES, Governor

1061

AN ACT concerning

CHAPTER 351
(House Bill 725)

Loans - Finder's Fees

FOR the purpose of creating a subtitle regulating the
charging of finder's fees by lean mortgage brokers;
defining terms; providing certain exceptions;
prohibiting mortgage brokers from holding certain
positions with certain lenders; permitting mortgage
brokers to charge, subject to certain conditions, a
finder's fee and a loan application fee; specifying the
maximum fees chargeable; prohibiting certain forms of
payment of such fees; providing that payment of a
finder's fee in a certain case shall not be considered
as interest to the lender; requiring lenders to comply
with certain disclosure laws and to inform loan
borrowers of their right to rescission; providing
borrowers with a right to refund of the finder's fee in
certain cases; providing certain penalties for any
violations; and generally relating to the charging of
finder's fees by lean mortgage brokers; and providing
certain restrictions on a licensed real estate broker,
Insurer, salesman, attorney-at-law, or agent thereof.

BY adding to

Article - Commercial Law

Section 12-801 through 12-807 12-809 to be under the

new subtitle "Subtitle 8. Loans - Finder's

Fees"
Annotated Code of Maryland
(1975 Volume and 1978 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article - Commercial Law

SUBTITLE 8. LOANS - FINDER'S FEES

12-801.

(A)   IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(B)   "BORROWER" MEANS AN INDIVIDUAL WHO OBTAINS A LOAN
OR ADVANCE OF MONEY.

(C)   (B)"BROKER" MEANS A PERSON WHO PROCURES A LOAN OR
ADVANCE OF MONEY OR WHO ARRANGES OR OTHERWISE ASSISTS A
BORROWER IN OBTAINING A LOAN OR ADVANCE OF MONEY.