A Maryland licensee withholds a material fact in 2026 from someone entitled to know it on a loan transaction. Can withholding a material fact from a person entitled to it support discipline?
Correct Answer
B) A ground: failing to disclose material facts is listed alongside fraud
In connection with any mortgage loan or loan application transaction, committing fraud, engaging in illegal or dishonest activities, or misrepresenting or failing to disclose any material facts to anyone entitled to that information, are grounds for suspension or revocation. Other choices: failure to disclose is named; loss is not an element; and the ground is not limited to closed transactions. Source: Md. Fin. Inst. § 11-517(a)(3)(iii)
Why This Is the Correct Answer
In connection with any mortgage loan or loan application transaction, committing fraud, engaging in illegal or dishonest activities, or misrepresenting or failing to disclose any material facts to anyone entitled to that information, are grounds for suspension or revocation. Other choices: failure to disclose is named; loss is not an element; and the ground is not limited to closed transactions. Source: Md. Fin. Inst. § 11-517(a)(3)(iii)
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