Maryland Commercial Law Section 12-127

      (a)      (1)      In this section the following words have the meanings indicated.

            (2)      "Covered loan" means a mortgage loan made under this subtitle that meets the criteria for a loan subject to the federal Home Ownership Equity Protection Act set forth in 15 U.S.C. § 1602(aa), as modified from time to time by Regulation Z, 12 C.F.R. Part 226, except that the comparison percentages for the mortgage loan shall be one percentage point less than those specified in 15 U.S.C. § 1602(aa), as modified from time to time by Regulation Z, 12 C.F.R. Part 226.

            (3)      "Mortgage loan" has the meaning stated in § 11-501 of the Financial Institutions Article.

            (4)      "Residential real property" means owner-occupied real property having a dwelling on it designed principally as a residence with accommodations for not more than four families.

      (b)      (1)      A lender may not make a covered loan without giving due regard to the borrower's ability to repay the loan in accordance with its terms.

            (2)      A borrower is presumed to be able to repay a loan if at the time the loan is made the borrower's total scheduled monthly payment obligations, including the required loan payment, do not exceed 45 percent of the borrower's monthly gross income.

            (3)      This section does not apply to a covered loan to a borrower whose monthly gross income is greater than 120 percent of the median family income for the metropolitan statistical area in which the residential real property securing the loan is located.