HARRY HUGHES, Governor

1065

(A)   AS USED IN THIS SECTION, THE FOLLOWING WORDS HAVE
THE MEANINGS INDICATED:

(1)   "MORTGAGE BANKER" IS ANY PERSON OR OTHER
ENTITY, OTHER THAN A BANK, TRUST COMPANY, SAVINGS BANK,
SAVINGS AND LOAN OR BUILDING AND LOAN ASSOCIATION, CREDIT
UNION, INSURANCE COMPANY, LICENSEE UNDER THE CONSUMER LOAN
LAW, OR LICENSEE UNDER THE SECONDARY MORTGAGE LOAN LAW,
WHICH IN THE REGULAR COURSE OF BUSINESS LENDS MONEY SECURED
BY A MORTGAGE OR OTHER LIEN ON REAL PROPERTY.

(2)   "MORTGAGE BROKER" IS ANY PERSON OR OTHER
ENTITY, OTHER THAN A BANK, TRUST COMPANY, SAVINGS BANK,
SAVINGS AND LOAN OR BUILDING AND LOAN ASSOCIATION, CREDIT
UNION, INSURANCE COMPANY, LICENSE LICENSEE UNDER THE
MARYLAND CUSTOMER CONSUMER LOAN LAW, OR LICENSEE UNDER THE
SECONDARY MORTGAGE LOAN LAW, WHICH IN THE REGULAR COURSE OF
BUSINESS ARRANGES OR PROCURES A LOAN OR ASSISTS A PERSON IN
OBTAINING A LOAN SECURED BY A MORTGAGE OR OTHER LIEN ON REAL
PROPERTY.

(3)   "CUSTOMER CONSUMER LOAN" IS A LOAN FOR
PERSONAL, FAMILY OR HOUSEHOLD PURPOSES AND DOES NOT INCLUDE
A COMMERCIAL OR CORPORATE LOAN UNDER § 12-103(E) OF THE
COMMERCIAL LAW ARTICLE.

(B)   Any [person, firm, partnership, corporation or
association trading or acting as a] mortgage broker[,] or
[otherwise defined as a] mortgage banker[,] shall be
required in order to trade or act in such business to
register EACH PLACE OF BUSINESS APPLICABLE TO THE PROVISIONS
OF THIS SUBTITLE annually with the State Bank Commissioner
and to pay thereto the sum of one hundred dollars ($100.00)
FOR EACH PLACE OF BUSINESS as [such] AN annual registration
fee. The Commissioner is hereby authorized, after public
hearings conducted in accordance with the provisions of the
Administrative Procedures Act, to establish a code of
conduct and a standard of ethics to govern and direct such
mortgage brokers and mortgage bankers in their functions as
such. Where the Commissioner finds that any mortgage broker
or mortgage banker is in violation of a provision of the
code of conduct or standard of ethics established under the
authority granted herein, or that any person, firm,
partnership, corporation or association is trading or acting
as a mortgage broker or mortgage banker without a prior
registration as such, said Commissioner shall be empowered
to summon such violator, if a person, or the officers or
partners thereof if the violator be a firm, partnership,
corporation or association, to a hearing before said
Commissioner to be governed by the Administrative Procedures
Act. The Commissioner shall have the power to suspend or
revoke a registration as a mortgage broker or mortgage
banker following such hearing if, for the cause, the
Commissioner is of the opinion that such action is in the
public interest. The Commissioner shall also have the
power to refuse to grant a reregistration of such mortgage
broker or mortgage banker, and the person, firm,
partnership, corporation or association so refused shall