Section 12-1206 - Requirements for purchasers. - Maryland Statutes

§ 12-1206. Requirements for purchasers.
 

(a)  Optional or required products.-  

(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)  Referrals for purchase of optional products.- 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)  Offers or referrals for purchase of required products.- 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. 
 

[2010, chs. 622, 623.]