Section 12-1201 - Definitions. - Maryland Statutes

§ 12-1201. Definitions.
 

(a)  In general.- In this subtitle the following words have the meanings indicated. 

(b)  Arranger of financing.- "Arranger of financing" means a person that: 

(1) For a fee or other valuable consideration, whether received directly or indirectly, aids or assists a borrower in obtaining a reverse mortgage loan; and 

(2) Is not named as the lender in the reverse mortgage loan agreement. 

(c)  Borrower.- "Borrower" means an individual who makes a loan application for or receives a reverse mortgage loan. 

(d)  Counseling agency.- "Counseling agency" means an entity approved by the U.S. Department of Housing and Urban Development to provide counseling regarding reverse mortgage loans. 

(e)  Dwelling.- "Dwelling" has the meaning stated in § 11-501 of the Financial Institutions Article. 

(f)  Lender.- "Lender" means a person who makes a reverse mortgage loan. 

(g)  Person.- "Person" includes an individual, corporation, business trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity. 

(h)  Reverse mortgage loan.- "Reverse mortgage loan" means a nonrecourse loan that: 

(1) Is secured by the borrower's principal dwelling; 

(2) Provides the borrower with purchase money proceeds, a lump sum payment, periodic cash advances, a line of credit, or any combination of those payment plans based on the equity in or value of the borrower's principal dwelling; and 

(3) Requires no payment of principal or interest until the full loan becomes due and payable. 
 

[2010, chs. 622, 623.]