#5 - Maryland General Assembly 2011 Legislative Update

Here is more information on legislation passed this year that affects real estate real estate brokerage and contracts.

HB – 509 – REAL PROPERTY – MORTGAGES – ENFORCEMENT – STATUS: PASSED – Effective April 12, 2011 – Authorizes the Commissioner of Financial Regulation to enforce the foreclosure and mortgage fraud laws in Maryland. Clarifies that the Commission may use certain investigative authority as well as compel violators of the law to make restitution to victims.

HB – 944 – FINANCIAL INSTITUTIONS – MORTGAGE LENDERS AND MORTGAGE LOAN ORIGINATORS – STATUS: PASSED – Effective October 1, 2011 – Requires a person who is exempt from State Mortgage Licensing requirements to register with the Nationwide Mortgage Licensing System and Registry (NMLS) if the person employs a licensed mortgage loan originator. This change conforms to State Law with new requirements in the Federal Secure and Fair Enforcement for Mortgage Licensing Act (SAFE ACT).

 HB – 1038 – COMMERCIAL LAW – RESIDENTIAL MORTGAGE LOANS – ESCROW AMOUNTS – STATUS: PASSED – Effective October 1, 2011 – Prohibits a lender from charging interest for up to one year on the amount of additional escrow money a lender requires a borrower to pay after establishment of the original escrow.

HB – 1041/SB – 256 – BUSINESS REGULATION – DEFINITION OF HOMEBUILDER – STATUS PASSED – Effective October 1, 2011 – Requires developers to register as a homebuilder if the developer enters into contracts with consumers to provide or construct homes.

HB – 1049 – REAL ESTATE BROKERS – INTRACOMPANY AGENTS – STATE PASSED: Effective October 1, 2011 – Authorizes a broker to appoint another licensee in the office to designate the intra-company agents working for the same real estate team. The designee appointed by the broker may not be a member of that real estate team. Prior to this change, the broker of record was the only licensee authorized to designate the intra-company agents for real estate teams.

For more information:

 http://www.msa.md.gov/msa/mdmanual/07leg/html/sessions/2011.html