Section 6-606 - Mortgage loans. - Maryland Statutes

§ 6-606. Mortgage loans.
 

(a)  Consistency with written policies.- A credit union may make a loan to a member that is secured by real or leasehold property in accordance with written real estate lending policies established by the board as provided in this section. 

(b)  Security; amortization.- A loan under this section shall be: 

(1) Secured by a deed of trust or mortgage on real or leasehold property; and 

(2) Amortized over a period of 30 years or less. 

(c)  Policy review.- The Commissioner may review the lending policies of the credit union and order changes. 

(d)  Permitted rate of interest.-  

(1) This subsection does not apply to an extension of credit or loan made by a credit union on or after October 1, 1994. 

(2) A loan under this section that is secured by a first mortgage may be made at any rate of interest that does not exceed the rate authorized by Title 12, Subtitle 1 of the Commercial Law Article for mortgage loans. 

(3) A loan under this section that is secured by a second mortgage may be made at any rate of interest that does not exceed the rate authorized by Title 12, Subtitle 4 of the Commercial Law Article. 
 

[An. Code 1957, art. 11, § 162; 1980, ch. 33, § 2; ch. 312; 1994, ch. 549; 1996, ch. 326, § 2; 2001, ch. 147, § 1; ch. 148, § 1.]