{"data":{"id":"us-md/md.-code-commercial-law-12-407.1","jurisdiction":"us-md","citation":"Md. Code, Commercial Law § 12–407.1","heading":"","body":"(a) The Commissioner shall develop and prepare a form that each lender shall furnish to an applicant for a secondary mortgage loan. The form shall state the following:\n(1) The purpose for which the loan is to be used;\n(2) A disclosure that, if the loan is for a commercial purpose, the borrower shall forfeit certain rights.\n(b) The form shall state that the forfeiture of rights includes:\n(1) The borrower’s right to pay a loan origination fee that, when combined with any finder’s fee imposed by a mortgage broker under § 12-804 of this title, does not exceed the greater of:\n(i) $500 or 10 percent of the net proceeds of a commercial loan of $75,000 or less made under this subtitle; or\n(ii) $250 or 10 percent of the net proceeds of any other loan made under this subtitle;\n(2) The borrower’s right not to pay any other commission, finder’s fees, or points for obtaining, procuring, or placing a loan; and\n(3) The borrower’s right not to pay an interest rate greater than 24 percent.\n(c) This section does not prevent a lender from imposing fees, discounts, points, or other charges whenever permitted under § 12-404.1 of this subtitle concerning mortgage loan programs of state and federal agencies.\n(d) Compliance with the provisions of this section does not relieve the lender or mortgage broker from the provisions of § 12-401(i)(3) of this subtitle.","path":["Article - Commercial Law"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcl\u0026section=12-407.1","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:56:33Z","sha256":"cb38ef352e78fbc4f8c0dc38bf0b379edb2d0ab975ed478be7262662c572d9f1","source_id":"us-md","stale":false,"prev":"us-md/md.-code-commercial-law-12-407","next":"us-md/md.-code-commercial-law-12-408"},"notice":"GroundRules: Original legal text. Not legal advice."}