Maryland Financial Institutions Section 11-601

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

      (b)      "Borrower" has the meaning stated in § 11-501 of this title.

      (c)      "Fund" means the Mortgage Lender-Originator Fund established under § 11-610 of this subtitle.

      (d)      "Independent contractor" means a person whose compensation is paid without a deduction for federal or State income tax.

      (e)      "License" means a license issued by the Commissioner under this subtitle.

      (f)      "Licensee" means an individual who is licensed by the Commissioner under this subtitle.

      (g)      "Loan application" has the meaning stated in § 11-501 of this title.

      (h)      "Mortgage lender" means a person that is licensed as a mortgage lender under Subtitle 5 of this title.

      (i)      "Mortgage lending business" has the meaning stated in § 11-501 of this title.

      (j)      "Mortgage loan" has the meaning stated in § 11-501 of this title.

      (k)      (1)      "Mortgage originator" means an individual who:

                  (i)      Is an employee of a mortgage lender that:

                        1.      Is a mortgage broker as defined in § 11-501(h) of this title; or

                        2.      Has or will have a net branch office at or out of which the individual works or will work;

                  (ii)      Directly contacts prospective borrowers for the purpose of negotiating with or advising the prospective borrowers regarding mortgage loan terms and availability;

                  (iii)      Receives from the mortgage lender compensation that is calculated:

                        1.      As a percentage of the principal amount of mortgage loans originated by the individual; or

                        2.      As a percentage of the interest, fees, and charges received by the mortgage lender that result from mortgage loan transactions originated by the individual; and

                  (iv)      Is authorized to accept a loan application on behalf of the mortgage lender.

            (2)      "Mortgage originator" does not include an individual who:

                  (i)      Owns a 25 percent or more interest in the mortgage lender; or

                  (ii)      Is licensed under Subtitle 5 of this title.

      (l)      (1)      "Net branch office" means a branch office of a mortgage lender that is separately licensed under Subtitle 5 of this title if:

                  (i)      As a condition of establishing the net branch, the mortgage lender requires the mortgage originator who works in or out of the branch office, or a person controlled by the mortgage originator, to pay an application, licensing, franchise, start-up, or other fee to the mortgage lender or directly to the Commissioner;

                  (ii)      The overhead expenses of the net branch are paid in whole or in part by:

                        1.      A mortgage originator who works in or out of the branch office; or

                        2.      A person controlled by a mortgage originator who works in or out of the branch office; or

                  (iii)      The mortgage lender is not:

                        1.      An obligor on a lease of the premises of the branch location; or

                        2.      An owner of the premises of the branch location.

            (2)      "Net branch office" does not include the mortgage lender's principal office.