Maryland New Disclosure Requirements

Effective Monday, November 3, 2008

Maryland Regulation 09.03.10 becomes effective today, Monday, November 3, 2008. The regulation requires lenders and credit grantors subject to the regulatory authority of the Commissioner of Financial Regulation to provide certain disclosures to borrowers in connection with mortgage loans that include a balloon payment, the omission of an escrow account for the payment of taxes and insurance, or mandatory binding arbitration.

While these disclosures are required within 10-business days after the application for the mortgage loan is completed, and not less than 72 hours before the time of settlement agreed to by the parties, MBS-ProClose has created them for your convenience. The MBS form Ids for these disclosures are Balloon Disclosure (MD4PI1), Escrow Account Waiver (MD4PI2) and Mandatory Binding Arbitration Disclosure (MD4PI3).

Read more about Maryland Regulation 09.03.10.