HARRY HUGHES, Governor

1063

12-805.

(A)   A MORTGAGE BROKER MAY NOT RECEIVE A FINDER'S FEE
OR LOAN APPLICATION FEE IN THE FORM OF A NOTE, MORTGAGE, OR
OTHER EVIDENCE OF INDEBTEDNESS.

(B)   PAYMENT OF THE FINDER'S FEE TO THE MORTGAGE
BROKER OUT OF THE PROCEEDS OF THE LOAN IS NOT CONSIDERED AS
INTEREST TO THE LENDER IF THE FINDER'S FEE IS NOT IN EXCESS
OF THAT PERMITTED BY THIS SUBTITLE.

(C)   IF THE FINDER'S FEE IS PAID FROM THE PROCEEDS OF
THE LOAN, THE LENDER SHALL COMPLY WITH THE DISCLOSURE
PROVISIONS OF § 12-106 OF THIS ARTICLE OR THE FEDERAL
TRUTH-IN-LENDING ACT AND IN ADDITION SHALL ADVISE THE
BORROWER, IN WRITING, OF HIS RIGHT TO A REFUND OF THE
FINDER'S FEE UPON THE EXERCISE OF ANY RIGHT OF RESCISSION OF
THE LOAN.

(D)  A FINDER'S FEE MAY NOT BE CHARGED UNLESS IT IS
PURSUANT TO A SEPARATE WRITTEN AGREEMENT BETWEEN THE BROKER
AND BORROWER WHICH IS DISTINCT FROM THE LOAN AGREEMENT. THE
TERMS OF THE PROPOSED AGREEMENT SHALL BE DISCLOSED TO THE
BORROWER BEFORE THE BROKER UNDERTAKES TO ASSIST THE BORROWER
IN OBTAINING A LOAN OR ADVANCE OF MONEY AND SHALL SPECIFY
THE AMOUNT OF THE FINDER'S FEE.

12-806.

A BORROWER IS ENTITLED TO A REFUND OF ANY FINDER'S FEE
PAID TO A MORTGAGE BROKER IF:

(1)   THE LOAN TRANSACTION IS NOT MADE TO THE
BORROWER; OR

(2)   THE BORROWER EXERCISES HIS RIGHT TO RESCIND
THE LOAN TRANSACTION UNDER THE FEDERAL TRUTH-IN-LENDING ACT
OR ANY SIMILAR FEDERAL OR STATE LAW.

12-807.

(A) ANY PERSON WHO KNOWINGLY VIOLATES ANY PROVISION

OF THIS SUBTITLE IS GUILTY OF A MISDEMEANOR AND ON

CONVICTION IS SUBJECT TO A FINE NOT EXCEEDING $500 OR
IMPRISONMENT NOT EXCEEDING 6 MONTHS OR BOTH.

(B) ANY MORTGAGE BROKER WHO VIOLATES ANY PROVISION OF
THIS SUBTITLE SHALL FORFEIT TO THE BORROWER THE GREATER OF:

(1)   THREE TIMES THE AMOUNT OF THE FINDER'S FEE
COLLECTED IN EXCESS OF THAT AUTHORIZED BY THIS SUBTITLE; OR

(2)   THE SUM OF $500.

12-808.

A LICENSED REAL ESTATE BROKER, INSURER, SALESMAN,
ATTORNEY-AT-LAW, OR AGENT THEREOF WHO ARRANGES OR PROCURES A