A Maryland broker arranges a $200,000 loan in 2026 and wants to charge a $19,000 finder fee. Does the proposed finder fee comply with the statutory percentage cap?
Correct Answer
B) Too high: the finder fee may not exceed 8% of the loan amount
A mortgage broker may charge a finder fee not in excess of 8 percent of the amount of the loan or advance, and 8 percent of $200,000 is $16,000. Other choices: agreement does not lift a statutory cap; 5 percent is not the figure; and the work performed is not what the cap measures. Source: Md. Com. Law § 12-804(a)
Why This Is the Correct Answer
A mortgage broker may charge a finder fee not in excess of 8 percent of the amount of the loan or advance, and 8 percent of $200,000 is $16,000. Other choices: agreement does not lift a statutory cap; 5 percent is not the figure; and the work performed is not what the cap measures. Source: Md. Com. Law § 12-804(a)
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