09.03.09.03

.03 Education and Testing Requirements.

A. Prelicensing Education. To qualify for a license, a mortgage loan originator shall have:

(1) Successfully completed at least 20 hours of prelicensing education as required by Financial Institutions Article, §11-606, Annotated Code of Maryland, which shall include at least the following subjects in the number of hours indicated:

(a) Federal law and regulations relating to mortgage origination — 3 hours;

(b) Ethics, including instruction on fraud, consumer protection, and fair lending issues — 3 hours;

(c) Lending standards and loan terms for the nontraditional mortgage product market — 2 hours;

(d) Maryland law and regulations relating to mortgage lending and origination — 3 hours;

(e) Maryland finder's fee law as stated in Commercial Law Article, §12-801 et seq., Annotated Code of Maryland — 2 hours; and

(f) Undefined or elective instruction on mortgage origination — 7 hours; and

(2) Achieved a passing grade on a written examination as required by Financial Institutions Article, §11-606.1, Annotated Code of Maryland.

B. Continuing Education. To renew a license, a mortgage loan originator shall have successfully completed in the 12 months immediately preceding the current renewal period at least 8 hours of continuing education in approved courses, as required by Financial Institutions Article, §11-612, Annotated Code of Maryland, which shall include at least the following subjects in the number of hours indicated:

(1) Federal law and regulations relating to mortgage origination — 3 hours;

(2) Ethics, including instruction on fraud, consumer protection, and fair lending issues — 2 hours;

(3) Lending standards and loan terms for the nontraditional mortgage product market — 2 hours; and

(4) Maryland law and regulations relating to mortgage lending and origination — 1 hour.

C. Reporting, Verification, and Record Keeping.

(1) A mortgage loan originator, when applying for an initial license or for a renewal license, shall provide to the NMLSR and to the Commissioner such information or certification as they may respectively require as proof of satisfactory completion of the education and testing requirements of this regulation.

(2) The Commissioner may require verification, on a random or other basis, of satisfactory completion of the requirements of this regulation.

(3) A licensee shall retain evidence acceptable to the Commissioner to verify satisfactory completion of the requirements of this regulation for at least 3 years after issuance of the license to which it applies.

D. Denial, Nonrenewal, Suspension, or Revocation of License. Subject to the notice and hearing requirements of Financial Institutions Article, §11-616, Annotated Code of Maryland, failure to comply with the requirements of this regulation is grounds for:

(1) Denial of a license under Financial Institutions Article, §11-607(e), Annotated Code of Maryland; or

(2) Suspension or revocation of a license or other sanctions pursuant to Financial Institutions Article, §11-615, Annotated Code of Maryland.