WILLIAM DONALD SCHAEFER, Governor                           S.B. 329

12-1022.

(A)     (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2)      "BORROWER" MEANS A CONSUMER BORROWER WHO MAKES AN
APPLICATION FOR A LOAN SECURED BY A FIRST MORTGAGE OR FIRST DEED OF
TRUST ON RESIDENTIAL REAL PROPERTY TO BE OCCUPIED BY THE BORROWER AS
THE BORROWER'S PRIMARY RESIDENCE.

(3)      "COMMITMENT" MEANS A WRITTEN, SPECIFIC, BINDING
AGREEMENT BETWEEN A BORROWER AND A LENDER WHICH SETS FORTH THE
TERMS OF A LOAN BEING EXTENDED TO THE BORROWER.

(4)      "FINANCING AGREEMENT" MEANS A WRITTEN AGREEMENT
BETWEEN A BORROWER AND A LENDER WHICH SETS FORTH THE TERMS OF A
PURCHASE MONEY LOAN OR A REFINANCING OF AN EXISTING LOAN THAT:

(I)       RESULTS IN OR IS SECURED BY A FIRST MORTGAGE OR A FIRST
DEED OF TRUST ON RESIDENTIAL REAL PROPERTY TO BE OCCUPIED BY THE
BORROWER; AND

(II)     IS OFFERED OR EXTENDED TO THE BORROWER.

(5)       (I) "LENDER" MEANS A CREDIT GRANTOR SUBJECT TO THE
LICENSING REQUIREMENTS OF TITLE 11, SUBTITLE 5 OF THE FINANCIAL
INSTITUTIONS ARTICLE.

(II) "LENDER" DOES NOT INCLUDE A CREDIT GRANTOR EXEMPT
FROM LICENSING UNDER § 11-502 OF THE FINANCIAL INSTITUTIONS ARTICLE.

(6)       (I) "LOAN APPLICATION" MEANS ANY ORAL OR WRITTEN
REQUEST FOR AN EXTENSION OF CREDIT THAT IS MADE IN ACCORDANCE WITH
PROCEDURES ESTABLISHED BY A LENDER FOR THE PURPOSE OF INDUCING THE
LENDER TO SEEK TO PROCURE OR MAKE A MORTGAGE LOAN.

(II) "LOAN APPLICATION" DOES NOT INCLUDE THE USE OF AN
ACCOUNT OR LINE OF CREDIT TO OBTAIN A LOAN WITHIN A PREVIOUSLY
ESTABLISHED CREDIT LIMIT.

(B)      (1) A LENDER WHO OFFERS TO MAKE OR PROCURE A LOAN SECURED
BY A FIRST MORTGAGE OR FIRST DEED OF TRUST ON RESIDENTIAL REAL
PROPERTY TO BE OCCUPIED BY THE BORROWER SHALL PROVIDE THE BORROWER
WITH A FINANCING AGREEMENT EXECUTED BY THE LENDER WITHIN 10 BUSINESS
DAYS AFTER THE DATE THE LOAN 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;

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