H.B. 1096

VETOES

Speaker of the House
State House
Annapolis, MD 21401

Dear Mr. Speaker:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed House Bill 1096 - Mortgage Lenders - Sole Proprietors - Qualifications for
Licensure.

This bill authorizes the Commissioner of Financial Regulation to issue a mortgage
lender license to an applicant who is a sole proprietor and who does not meet the
3-year experience requirement under specified circumstances; specifying the
conditions under which a sole proprietor may be licensed under the Act; prohibiting a
sole proprietor who is licensed under the Act from aiding or assisting a borrower to
obtain a loan from a financial institution other than the institution identified in the
license application.

Senate Bill 643, which was passed by the General Assembly and signed by me on May
26, 2004, accomplishes the same purpose. Therefore, it is not necessary for me to sign
House Bill 1096.

Very truly yours,
Robert L. Ehrlich, Jr.
Governor

House Bill No. 1096

AN ACT concerning

Mortgage Lenders - Sole Proprietors - Qualifications for Licensure

FOR the purpose of authorizing the Commissioner of Financial Regulation to issue a
mortgage lender license to an applicant who is a sole proprietor and who does
not meet a certain experience requirement under certain circumstances;
specifying the conditions under which a sole proprietor may be licensed under
this Act; prohibiting a sole proprietor who is licensed under this Act from aiding
or assisting a borrower to obtain a loan from a financial institution other than
the financial institution identified in the license application; prohibiting a sole
proprietor who is licensed under this Act from being compensated for mortgage
brokerage activities on a certain basis or receiving a certain finder's fee;
prohibiting a sole proprietor who is licensed under this Act from handling
borrower or other third party funds in connection with the brokering or closing
of a mortgage loan with a certain exception;; prohibiting a sole proprietor who is
licensed under this Act from referring a borrower to another licensee;
prohibiting a sole proprietor who is licensed under this Act from making
mortgage loans; allowing a sole proprietor who is licensed under this Act to
forward a certain check to a certain financial institution; and generally relating
to the qualifications for licensure of sole proprietors as mortgage lenders.

BY repealing and reenacting, with amendments,

- 3230 -