WILLIAM DONALD SCHAEFER, Governor                   Ch. 341

[(b)] (E) "License" means a license issued by the Bank
Commissioner under this subtitle to act as a mortgage banker or a
mortgage broker.

[(c)] (F) "Mortgage banker" means any person who in the
regular course of business lends money that is secured by a
mortgage or other lien on real property.

[(d)] (G) "Mortgage broker" means any person who in the
regular course of business assists a person in getting a loan
that is secured by a mortgage or other lien on real property.

[(e)] (H) "Person" includes an individual, corporation,
business trust, estate, trust, partnership, association, two 2 or
more persons having a joint or common interest, or any other
legal or commercial entity.

(I) "POINT" MEANS A FEE, PREMIUM, BONUS, LOAN ORIGINATION
FEE, SERVICE CHARGE, OR ANY OTHER CHARGE EQUAL TO 1 PERCENT OF
THE PRINCIPAL AMOUNT OF A LOAN WHICH IS CHARGED BY A LENDER AT OR
BEFORE THE TIME THE LOAN IS MADE AS ADDITIONAL COMPENSATION FOR
THE LOAN.

12-512.

(A) (1) A LICENSEE UNDER THIS SUBTITLE WHO OFFERS TO MAKE
OR OBTAIN A RESIDENTIAL MORTGAGE LOAN ON BEHALF OF A BORROWER
MORTGAGE ON A 1 TO 4 FAMILY HOME TO BE OCCUPIED BY THE BORROWER
SHALL PROVIDE THE BORROWER WITH A FINANCING AGREEMENT, EXECUTED
BY THE PARTIES WITHIN 5 10 BUSINESS DAYS AFTER THE DATE THE
APPLICATION IS COMPLETED.

(2)  THE FINANCING AGREEMENT SHALL PROVIDE:

(I)  THE TERM AND PRINCIPAL AMOUNT OF THE LOAN;

(II)  AN EXPLANATION OF THE TYPE OF MORTGAGE
LOAN BEING OFFERED;

(III)  THE RATE OF INTEREST THAT WILL APPLY TO
THE LOAN AND, IF THE RATE IS SUBJECT TO CHANGE OR IS A VARIABLE
RATE OR IS SUBJECT TO FINAL DETERMINATION AT A FUTURE DATE BASED
ON SOME OBJECTIVE STANDARD, A SPECIFIC STATEMENT OF THOSE FACTS;

(IV)  THE POINTS, IF ANY, TO BE PAID BY THE
BORROWER OR THE SELLER, OR BOTH; AND

(V)  THE TERM OF DURING WHICH THE FINANCING
AGREEMENT REMAINS IN EFFECT.

(3)  IF ALL THE PROVISIONS OF THE FINANCING AGREEMENT
ARE SPECIFIC AND NOT SUBJECT TO FUTURE DETERMINATION, CHANGE, OR
ALTERATION DURING ITS TERM, THE FINANCIAL FINANCING AGREEMENT

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