09.03.06.09

.09 Fees.

A. A licensee may not retain a fee, or any portion of a fee, collected from the borrower if the fee is represented as a charge to be paid to a third party for services in connection with the loan.

B. Timing of Collection.

(1) If a financing agreement is required under Commercial Law Article, §12-125, Annotated Code of Maryland, and these regulations, a licensee may not collect any fee from the applicant before providing the financing agreement.

(2) Notwithstanding §B(1) of this regulation, a licensee may collect fees which are to be fully paid to third parties for services in connection with the loan, before providing a financing agreement.

C. A licensee may condition the making of a loan on the real estate seller's paying certain fees only if:

(1) The seller has agreed in writing to pay those fees; or

(2) At the time the borrower elects the type of loan applied for, the licensee discloses in writing:

(a) Fees which the seller may be required to pay,

(b) The fact that the borrower has the responsibility for informing the seller about the fees, and

(c) The fact that the loan will not be made unless the seller, or someone other than the borrower, pays those fees.

D. If a licensee fails to comply with §C of this regulation, the licensee may not:

(1) Fail to close the loan solely because the seller refuses at closing to pay certain fees; or

(2) Threaten at closing to refuse to make the loan unless the seller pays certain fees.