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Ch. 532 2002 LAWS OF MARYLAND
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(4) A violation of this subsection does not affect the validity of the first
lien securing the loan.
12-1029.
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) "COVERED LOAN" MEANS A MORTGAGE LOAN MADE UNDER THIS
SUBTITLE THAT MEETS THE CRITERIA DESCRIBED FOR A LOAN SUBJECT TO THE
FEDERAL HOME OWNERSHIP EQUITY PROTECTION ACT SET FORTH IN 15 U.S.C. §
1602(AA), AS MODIFIED FROM TIME TO TIME BY REGULATION Z, 12 C.F.R. PART 226.
EXCEPT THAT THE COMPARISON PERCENTAGES FOR THE MORTGAGE LOAN SHALL
BE ONE PERCENTAGE POINT LESS THAN THOSE SPECIFIED IN 15 U.S.C. 1602(AA), AS
MODIFIED FROM TIME TO TIME BY REGULATION Z, 12 C.F.R. PART 226.
(3) "HOME BUYER EDUCATION OR HOUSING COUNSELING" MEANS
INSTRUCTION ON PREPARING FOR HOME OWNERSHIP, SHOPPING FOR A HOME.
OBTAINING A MORTGAGE, LOAN CLOSING, AND LIFE AS A HOMEOWNER
(B) (1) A CREDIT GRANTOR MAY NOT MAKE A COVERED LOAN WITHOUT
GIVING DUE REGARD TO THE BORROWER'S ABILITY TO REPAY THE LOAN IN
ACCORDANCE WITH ITS TERMS.
(2) A BORROWER IS PRESUMED TO BE ABLE TO REPAY A LOAN IF AT THE
TIME THE LOAN IS MADE THE BORROWER'S TOTAL SCHEDULED MONTHLY PAYMENT
OBLIGATIONS, INCLUDING THE REQUIRED LOAN PAYMENT, DO NOT EXCEED 40 45
PERCENT OF THE BORROWER'S MONTHLY GROSS INCOME.
(3) THIS SUBSECTION DOES NOT APPLY TO A LOAN TO A BORROWER
WHOSE MONTHLY GROSS INCOME IS GREATER THAN 120 PERCENT OF THE MEDIAN
FAMILY INCOME FOR THE METROPOLITAN STATISTICAL AREA IN WHICH THE
RESIDENTIAL REAL PROPERTY SECURING THE PLAN IS LOCATED.
(C) (1) IN THIS SUBSECTION, "LOAN APPLICATION" HAS THE MEANING
STATED IN § 12-1022 OF THIS SUBTITLE.
(2) AT THE TIME A BORROWER COMPLETES A LOAN APPLICATION FOR A
COVERED LOAN, THE CREDIT GRANTOR SHALL PROVIDE THE BORROWER WITH:
(I) A WRITTEN RECOMMENDATION THAT THE BORROWER SEEK
HOME BUYER EDUCATION OR HOUSING COUNSELING; AND
(II) A LIST OF AGENCIES AND ORGANIZATIONS APPROVED BY THE
COUNTY IN WHICH THE RESIDENTIAL REAL PROPERTY SECURING THE COVERED
LOAN IS LOCATED TO PROVIDE HOME BUYER EDUCATION OR HOUSING
COUNSELING.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:
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- 4016 -
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