Maryland Code § FI-5-514

Section FI-5-514
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(a) (1) In this section the following words have the meanings indicated.
(2) "Conventional home mortgage loan" has the meaning stated in §
11-501 of this article.
(3) "Dwelling" has the meaning stated in § 11-501 of this article.
(4) "Shared appreciation agreement" has the meaning stated in § 11-
501 of this article.
(b) (1) This subsection applies only to a conventional home mortgage
loan that is not already required by law or regulation by the State or federal
government to be assumable in connection with the granting of absolute divorce.
(2) A banking institution shall include in any conventional home
mortgage loan a provision authorizing any of the existing borrowers to purchase the
property interest of another borrower on the loan by assuming the seller's portion of
the mortgage if:
(i) The assumption is in connection with the granting of a
decree of absolute divorce; and

(ii) The banking institution determines that the assuming
borrower qualifies for the loan.
(c) A banking institution shall disclose an assumption provision in any
conventional home mortgage loan in writing to a loan applicant before the completion
of the loan application.

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