About Statutes

This page accesses the Code of Maryland (Statutes) and the Maryland Municipal Charters and Resolutions as compiled and maintained by the Department of Legislative Services.

The Code is arranged by and organized into “Articles” (e.g. Transportation Article), which are further subdivided into “titles”, “subtitles”, “sections”, “subsections”, “paragraphs”, subparagraphs”, etc.

Note that the “official” compilation of the laws (Chapters) enacted at each session of the General Assembly is published by the State as the “Laws of Maryland”, commonly referred to as the “Session Laws”. The Session Laws for each session are compiled chronologically by chapter number and serve as the source law from which the statutes accessed here are derived.

While the “Laws of Maryland” (Session Laws) constitute the official laws of the State, this Code and the annotated versions noted below are accepted as “evidence” of the law in all State courts and by all public offices and officials (See § 10-201 of the Courts & Judicial Proceedings Article). However, in the event of a conflict between the Code and the Session Laws, the Session Laws prevail.

Note: Annotated versions of the Code, published by LexisNexis and West, are available in book and online formats. These Annotated Codes include references to case law, related citations, and explanatory notations.

The Municipal Charters are updated each year by incorporating all charter resolutions received by the Department through May 31 of that year. Individual Municipal Resolutions are published to the General Assembly website as they are received by the Department.

Statute Text

Article - Financial Institutions
(a)   Subject to the hearing provisions of § 11–616 of this subtitle, and except as provided in subsection (f) of this section, the Commissioner may suspend or revoke the license of any licensee if the licensee:
(1)   Makes any material misstatement in an application for a license;
(2)   Is convicted under the laws of the United States or of any state of a felony or a misdemeanor that is directly related to the fitness and qualification of the individual to act as a mortgage loan originator;
(3)   In connection with any mortgage loan or loan application transaction:
(i)   Commits any fraud;
(ii)   Engages in any illegal or dishonest activities; or
(iii)   Misrepresents or fails to disclose any material facts to a person entitled to that information;
(4)   Violates any provision of this subtitle, any regulation adopted under this subtitle, or any other law regulating mortgage lending or mortgage origination in the State; or
(5)   Otherwise demonstrates unworthiness, bad faith, dishonesty, or any other quality that indicates that the business of the licensee has not been or will not be conducted honestly.
(b)   In determining whether a license shall be suspended or revoked for a reason described in subsection (a)(2) of this section, the Commissioner shall consider:
(1)   The nature of the crime;
(2)   The relationship of the crime to the activities authorized by the license;
(3)   With respect to a felony, the relevance of the conviction to the fitness and qualification of the licensee to engage in the mortgage lending or mortgage origination business;
(4)   The length of time since the conviction; and
(5)   The behavior and activities of the licensee since the conviction.
(c)    (1)   The Commissioner may enforce the provisions of this subtitle, regulations adopted under this subtitle, and the applicable provisions of Title 12 of the Commercial Law Article by:
(i)   Issuing an order:
1.   To cease and desist from the violation and any further similar violations; and
2.   Requiring the violator to take affirmative action to correct the violation, including the restitution of money or property to any person aggrieved by the violation; and
(ii)   Imposing a civil penalty not exceeding $5,000 for each violation.
(2)   If a violator fails to comply with an order issued under paragraph (1)(i) of this subsection, the Commissioner may impose a civil penalty not exceeding $5,000 for each violation from which the violator failed to cease and desist or for which the violator failed to take affirmative action to correct.
(d)   The Commissioner may file a petition in the circuit court for a county seeking enforcement of an order issued under this section.
(e)   In determining the amount of a civil penalty imposed under subsection (c) of this section, the Commissioner shall consider:
(1)   The seriousness of the violation;
(2)   The good faith of the violator;
(3)   The violator’s history of previous violations;
(4)   The deleterious effect of the violation on the public and mortgage industry;
(5)   The assets of the violator; and
(6)   Any other factors relevant to the determination of the civil penalty.
(f)   The Commissioner shall revoke the license of the licensee if the Commissioner determines that a licensee, while licensed, has:
(1)   Been convicted of a felony; or
(2)   Had a mortgage loan originator license revoked in any governmental jurisdiction.