Maryland2026Enacted
HB0038
New Rules for Insurance Agents Who Also Start Mortgage Loans
Last scannedAug 22, 2026, 4:24 AM
In one sentence
This law changes how insurance agents who also start mortgage loans get licensed and requires their sponsoring companies to meet specific rules before the state approves them.
What it does
- Expands the definition of an affiliated insurance producer-mortgage loan originator to include those working for approved mortgage lenders, not just financial institutions.
- Requires the Commissioner of Financial Regulation to approve a sponsor only if it is in good standing and follows all state and federal laws.
- Mandates that license applications be signed by an authorized representative of the sponsoring company or lender.
- Limits these licensed individuals to working for one specific approved financial institution or mortgage lender named on their application.
- Prohibits these individuals from receiving fees based on loan terms, handling borrower funds (with limited exceptions), making loans, or servicing loans.
Who it affects
- Individuals who are both insurance producers and mortgage loan originators working for a single company.
- Financial institutions that want to sponsor affiliated insurance producer-mortgage loan originators.
- Mortgage lenders that meet specific criteria and wish to sponsor these individuals.
- The Commissioner of Financial Regulation, who must review and approve sponsors.
Limits and unknowns
- The law does not explain how the Commissioner decides if a company is in 'good standing' beyond general regulatory requirements.
- It is unclear from this text what specific penalties exist for sponsors or individuals who break these new rules.
- The provided bill text ends before fully explaining restrictions on using different names or employers.
Plain language
Terms to know
- Affiliated insurance producer-mortgage loan originator
- A person licensed as an insurance agent who also starts mortgage loans for a specific company that controls or is controlled by the same insurer, or under common control.
- Sponsor
- The financial institution, mortgage lender, or approved licensee that hires and supervises the affiliated producer-mortgage loan originator.
- Material compliance
- Following all important parts of state and federal laws without major violations.
Official record
Sources
Official summary
Altering the licensing requirements for an affiliated insurance producer-mortgage loan originator; and requiring the Commissioner of Financial Regulation to approve a certain financial institution that meets certain criteria or certain mortgage lenders that meet certain criteria to sponsor an affiliated insurance producer-mortgage loan originator if the mortgage lender is in good standing with the Commissioner and any other regulator to which it is subject and is in material compliance with applicable state and federal law.
Official activity
Bill history
- Approved by the Governor - Chapter 512