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Office of the Commissioner of Financial Regulation

 

Extension of Emergency Mortgage Lender and Mortgage Loan Originator Regulations to March 15, 2010

 

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January 7, 2010

EXTENSION OF EMERGENCY MORTGAGE LENDER AND MORTGAGE LOAN ORIGINATOR REGULATIONS
NOTICE: THE EMERGENCY PERIOD FOR THE REGULATIONS DESCRIBED BELOW HAS BEEN EXTENDED TO MARCH 15, 2010. (View the proposed permanent replacement regulations.)

The Commissioner of Financial Regulation has promulgated emergency mortgage lender and mortgage originator regulations. These regulations implement Senate Bill 269 ("SB 269"), which conforms Maryland's mortgage laws to the federal SAFE Mortgage Licensing Act. They also facilitate the transition to the Nationwide Mortgage Licensing System (the "NMLS"). The emergency regulations have been approved by the Joint Committee on Administrative, Executive and Legislative Review.

Extended Emergency Regulation Effective Dates: July 1, 2009 through March 15, 2010.

Summary of Emergency Regulations

09.03.06.03 (Mortgage Lenders)

Regulation .03 provides for the transition to the NMLS by establishing:

  • Extended licensing terms which will end on December 31, 2010.
  • Extended-term fees (these transitional extended-term fees reflect the fact that certain license terms during the transitional period will be for a period greater than twelve months, the standard term).
  • A rule permitting the Commissioner to process FBI fingerprint and criminal background checks under the existing Maryland CJIS system until such time as the NMLS is able to process these background checks as a channeling agent for the FBI.

09.03.09.02, .03., .05-.07 (Mortgage Originators)

Regulation .02 conforms certain definitions with those contained in SB 269.

Regulation .03 conforms prelicensing and continuing education requirements to those contained in SB 269, while retaining the existing requirement that prelicensing education must be taken within 24 months of application.

Regulation .05 deletes the experience requirement (no longer applicable under SB 269) and expressly permits the Commissioner to return an incomplete application to the applicant after it has remained incomplete for 60 days. This 60-day return rule is the long-standing policy and practice of the Commissioner.

Regulation .06 amends NMLS transition procedures to accommodate the new interim license and affiliated insurance producer-mortgage loan originator license categories. It also provides for the transition to the NMLS by establishing:

  • Extended licensing terms which will end on December 31, 2010.
  • Extended-term fees (these transitional extended-term fees reflect the fact that certain license terms during the transitional period will be for a period greater than twelve months, the standard term).
  • A rule permitting the Commissioner to process FBI fingerprint and criminal background checks under the existing Maryland CJIS system until such time as the NMLS is able to process these background check requests as a channeling agent for the FBI.

Regulation .07 establishes a standard fee provision for the new affiliated insurance producer-mortgage loan originator license category established by SB 269.