Maryland Governor Larry Hogan recently signed a law, Maryland Senate Bill 392 (“S.B. 392”), which reviews the Maryland Funding Agreement and advertising obligations for transactions subject to the TILA-RESPA Integrated Disclosure Rule (“TRID”). The changes made by S.B 392 came into effect on July 1, 2017. If not all the provisions of the funding agreement can be changed, the funding agreement is the final agreement between the parties on the elements covered. If the information contained in the financing agreement changes, the lender must send the borrower a bond executed by the lender at least 72 hours before the liquidation date. However, after the completion of the financing agreement, the borrower may, in writing, waive the 72-hour pre-presentation requirement and accept the obligation at the count if the lender discloses that the 72-hour pre-submission requirement is not feasible. Under the . B 392, mortgage lenders can meet the aforementioned financing and commitment obligations in Maryland for transactions subject to TRID, providing borrowers with a copy of the credit estimate and account opening. However, in the case of transactions that are not subject to triD (for example. B upside-down mortgages and HELOCs), lenders must continue to meet Maryland`s specific financing and commitment obligations, as long as this is applicable. Effective July 1, 2017, Maryland repealed a closed credit lending law and was reissued with amendments to eliminate duplicate disclosures.
Essentially, the amendments are intended to streamline the lending process by replacing the financing agreement and the disclosure of commitments with credit estimation and closing notifications. For the first mortgages secured by one to four homeowner-managed families, a Maryland lender is generally required to present the borrower with a financing contract within 10 business days of the closing date of the loan application. The financing agreement must provide for: (a) the duration and principal amount of the loan; b) an explanation of the nature of the mortgage loan offered; (c) the interest rate applicable to the loan and, if the interest rate changes or is a variable interest rate or is set later on the basis of an objective standard, a specific presentation of these facts; (d) the points to be paid by the borrower or seller, or both; and (e) the length of time the funding agreement remains in force.