Maryland recently enacted Senate Bill 566, which amends its mortgage broker finder’s fee law to restrict the amount of a finder’s fee a mortgage broker may charge a borrower when securing a mortgage loan on the same property more than once in a 24-month period. Generally, a mortgage broker may charge a finder’s fee of up to 8% of the amount of the loan or advance and, in addition, may charge the borrower for the actual costs of certain documents or any goods or services required by the loan application process for which the mortgage broker has paid a third-party provider.
Current Maryland law permits a mortgage broker obtaining a loan on the same property more than once within 24 months to charge a finder’s fee only on the part of the subsequent loan that is in excess of the initial loan. However, when the amended act takes effect October 1, 2018, mortgage brokers in these circumstances will be limited to charging no more than a total of 8% of the initial loan amount when combining the finder’s fee charged on that loan and any other finder’s fees collected during the 24-month period.
Read the amended act here.