MD Expands AIP-MLO License to Non-Bank Mortgage Lenders

The Maryland Legislature enacted HB 38, which will allow an affiliated insurance producer-mortgage loan originator (AIP-MLO) to originate loans for an approved mortgage lender that controls, is controlled by, or is under common control with (i.e.,affiliated with) the AIP-MLO’s appointing insurer.  This change effectively opens up the AIP-MLO license to non-bank mortgage lenders that are affiliated with an insurer.  The law will also allow the AIP-MLO to originate loans made by a mortgage lender in which the mortgage lender licensee is acting as a mortgage broker.

The Commissioner of Financial Regulation must approve the mortgage lender, finding it to be in good standing with the Commissioner (and other regulators with authority over it), and in material compliance with applicable state and federal laws. 

HB 38 goes into effect October 1, 2026.