Md. Code, Commercial Law § 12-1206
This is the official text of Md. Code, Commercial Law § 12-1206, part of Maryland’s Code, Commercial Law — governs commercial transactions - Maryland's version of the Uniform Commercial Code.
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§12–1206.
Official statutory text
(a) (1) Except as provided in paragraph (2) of this subsection, a lender or an arranger of financing may not require a borrower to purchase an annuity, a long–term care policy, or other financial or insurance product as a condition to obtaining a reverse mortgage loan.
(2) A lender or an arranger of financing may require a borrower to purchase title insurance, hazard, flood, or other peril insurance, and any other financial or insurance product that is required for reverse mortgage loans insured under 12 U.S.C. § 1715z–20.
(b) A lender or an arranger of financing may not refer a borrower to any person for the purchase of an annuity or any other financial or insurance product before the later of:
(1) The closing of the reverse mortgage loan; or
(2) The expiration of the borrower’s right to rescind the reverse mortgage loan agreement.
(c) This section does not prohibit a lender or an arranger of financing from offering to a borrower, or referring a borrower to a person for the purchase of:
(1) Title insurance;
(2) Hazard, flood, or other peril insurance; or
(3) Other products that are customary under a reverse mortgage loan.
(2) A lender or an arranger of financing may require a borrower to purchase title insurance, hazard, flood, or other peril insurance, and any other financial or insurance product that is required for reverse mortgage loans insured under 12 U.S.C. § 1715z–20.
(b) A lender or an arranger of financing may not refer a borrower to any person for the purchase of an annuity or any other financial or insurance product before the later of:
(1) The closing of the reverse mortgage loan; or
(2) The expiration of the borrower’s right to rescind the reverse mortgage loan agreement.
(c) This section does not prohibit a lender or an arranger of financing from offering to a borrower, or referring a borrower to a person for the purchase of:
(1) Title insurance;
(2) Hazard, flood, or other peril insurance; or
(3) Other products that are customary under a reverse mortgage loan.
Status: in_force · Read it on the official government site
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