§ 11-522

Maryland § 11-522

• Jurisdiction: Maryland
• Article gfi: Financial Institutions
• Title: 11

Text

(a) (1) This subsection applies only to a conventional home mortgage loan that is not already required by law or regulation by the State or federal government to be assumable in connection with the granting of absolute divorce.

(2) A mortgage lender or a mortgage lending business in the State shall include in any conventional home mortgage loan a provision authorizing any of the existing borrowers to purchase the property interest of another borrower on the loan by assuming the seller’s portion of the mortgage if:

(i) The assumption is in connection with the granting of a decree of absolute divorce; and

(ii) The mortgage lender or mortgage lending business determines that the assuming borrower qualifies for the loan.

(b) A mortgage lender or a mortgage lending business in the State shall disclose an assumption provision in any conventional home mortgage loan in writing to a loan applicant before the completion of the loan application.