§ 11-502. Applicability

   (a) "Affiliate" defined. -- In this section, "affiliate" means any company that controls, is controlled by, or is under common control with an institution described in subsection (c) of this section.

(b) Exceptions. -- The provisions of this subtitle do not apply to:

   (1) Any bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of this State or the United States or any other-state bank having a branch in this State;

   (2) Any insurance company authorized to do business in the State;

   (3) Any corporate instrumentality of the Government of the United States including:

      (i) The Federal Home Loan Mortgage Corporation;

      (ii) The Federal National Mortgage Association; and

      (iii) The Government National Mortgage Association;

   (4) Any person who takes back a deferred purchase money mortgage in connection with the sale of:

      (i) A dwelling or residential real estate owned by, and titled in the name of, that person; or

      (ii) A new residential dwelling that the person built;

   (5) A nonprofit charitable organization registered with the Maryland Secretary of State or a nonprofit religious organization;

   (6) An employer making a mortgage loan to an employee;

   (7) A person making a mortgage loan to a borrower who is the person's spouse, child, child's spouse, parent, sibling, grandparent, grandchild, or grandchild's spouse;

   (8) A real estate broker who:

      (i) Is licensed in the State; and

      (ii) Makes a mortgage loan providing a repayment schedule of 2 years or less to assist the borrower in the purchase or sale of a dwelling or residential real estate through the broker;

   (9) A home improvement contractor licensed under the Maryland Home Improvement Law who assigns a mortgage loan without recourse within 30 days after completion of the contract to a person licensed under this subtitle or to an institution that is exempt from this subtitle under item (1), (2), or (10) of this subsection;

   (10) A subsidiary or affiliate of an institution described in subsection (c) of this section, which subsidiary or affiliate:

      (i) Is subject to audit or examination by a regulatory body or agency of this State or the state where the subsidiary or affiliate maintains its principal office; and

      (ii) Files with the Commissioner, prior to making mortgage loans, information sufficient to identify:

         1. The correct corporate name of the subsidiary or affiliate;

         2. An address and telephone number of a contact person for the subsidiary or affiliate;

         3. A resident agent; and

         4. Any additional information considered necessary by the Commissioner for protection of the public;

   (11) Any employee benefit plan qualified under Internal Revenue Code § 401 or persons acting as fiduciaries with respect to such a plan, making mortgage loans solely to plan participants from plan assets; or

   (12) Employees acting within the scope of their employment with:

      (i) A licensed mortgage lender; or

      (ii) A person who is exempt from licensure under this subtitle.

(c) When applicable. -- The exemption in subsection (b)(10) of this section applies to subsidiaries and affiliates of:

   (1) Any bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of this State; or

   (2) Any other-state bank, as that term is defined in § 5-1001 of this article, having a branch that accepts deposits in this State.

(d) Limitation. -- The exemptions provided in subsection (b) of this section do not apply to any person who has been denied a license to engage in business as a mortgage lender or real estate broker or whose license to engage in such activities has been suspended or revoked within the 3 immediately preceding calendar years.

HISTORY: 1989, ch. 476, § 3; 1992, ch. 26, § 2; 1995, ch. 213, § 2; 1997, ch. 588; 2003, ch. 348; 2009, ch. 4; 2012, ch. 55.