Ch. 588                                    1997 LAWS OF MARYLAND

(2) FILE WITH THE COMMISSIONER AN APPLICATION FOR A NEW
LICENSE, TOGETHER WITH ALL APPLICABLE APPLICATION AND INVESTIGATION
FEES.

11-521.1.

(A)    A PERSON ACTING AS A MORTGAGE BROKER SHALL INCLUDE A
DISCLOSURE STATEMENT, SUBSTANTIALLY SIMILAR TO THE FOLLOWING, IN THE
WRITTEN BROKER AGREEMENT REQUIRED BY § 12-805 OF THE COMMERCIAL LAW
ARTICLE:

"THIS AGREEMENT SETS FORTH THE SERVICES TO BE PROVIDED BY

         (LICENSEE NAME)           TO YOU AS ITS CUSTOMER.           (LICENSEE

NAME)            CAN OFFER YOU ACCESS TO ONE OR MORE MORTGAGE

PROGRAMS AVAILABLE TO ___(LICENSEE NAME) FROM THIRD PARTY

LENDING SOURCES.             (LICENSEE NAME)            CAN ASSIST YOU IN

CHOOSING FROM THESE OPTIONS A LOAN PRODUCT SUITABLE FOR YOUR

INDIVIDUAL REQUIREMENTS.          (LICENSEE NAME) IS NOT

CONSIDERED YOUR AGENT UNDER MARYLAND LAW. FEDERAL AND STATE
LAWS AND REGULATIONS GOVERN THE CONDUCT OF MORTGAGE BROKERS.
NO LAW, HOWEVER, STIPULATES THAT A MORTGAGE BROKER MAKE
AVAILABLE THE BEST POSSIBLE RATES OR PRICES IN THE MARKETPLACE FOR
ITS CUSTOMERS. AS IN ANY OTHER PURCHASE, CONSUMERS ARE ADVISED TO
COMPARE SERVICES AND COSTS BEFORE MAKING A SELECTION."

(B)     THE DISCLOSURE STATEMENT REQUIRED UNDER THIS SECTION SHALL
BE AT LEAST AS CONSPICUOUS AS OTHER PROVISIONS IN THE BROKER AGREEMENT.

(C) A LICENSEE WHO MAKES THE DISCLOSURE STATEMENT REQUIRED
UNDER THIS SECTION MAY NOT, FOR PURPOSES OF THE LOAN TRANSACTION, OR
ANY ACTION ARISING FROM THE LOAN TRANSACTION, BE CONSIDERED THE AGENT
OR A FIDUCIARY OF THE BORROWER.

(D) A PROVISION IN ANY AGREEMENT BETWEEN A MORTGAGE BROKER AND
A BORROWER THAT PURPORTS TO RESTRICT THE BORROWER FROM APPLYING FOR
A LOAN WITH ANOTHER LENDER OR MORTGAGE BROKER IS VOID.

11-523.

(a)     Any person who willfully violates any provision of this subtitle or any rule or
regulation adopted under it is guilty of a misdemeanor and on conviction is subject to a
fine not exceeding $5,000 or imprisonment not exceeding 1 year or both.

(b)     [Except for a bona fide error of computation, any] ANY unlicensed person
[claiming an exemption from licensing] who is not exempt from licensing under this
subtitle who MAKES OR ASSISTS A BORROWER IN OBTAINING A MORTGAGE LOAN IN
VIOLATION [violates any provision] of this subtitle may collect only the principal
amount of [any] THE loan and may not collect any interest, costs, FINDER'S FEES,
BROKER FEES, or other charges with respect to the loan.

(C)     ANY MORTGAGE LENDER WHO WILLFULLY MISAPPROPRIATES OR
OTHERWISE INTENTIONALLY AND FRAUDULENTLY CONVERTS TO THE MORTGAGE

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