A Maryland lender employee converts $900 of borrower money to personal use in 2026. What maximum criminal penalty applies to that conversion under the lender subtitle?
Correct Answer
B) A felony carrying up to $100,000 or 15 years imprisonment or both
A mortgage lender or an employee or agent who willfully misappropriates or intentionally and fraudulently converts to their own use money in excess of $300 rightfully belonging to a borrower, or who otherwise commits any fraudulent act in the course of the mortgage lending business, is guilty of a felony subject to a fine not exceeding $100,000 or imprisonment not exceeding 15 years or both. Other choices: this carries higher maxima than the general willful violation; the threshold is $300; and it is criminal rather than purely civil. Source: Md. Fin. Inst. § 11-523(c)
Why This Is the Correct Answer
A mortgage lender or an employee or agent who willfully misappropriates or intentionally and fraudulently converts to their own use money in excess of $300 rightfully belonging to a borrower, or who otherwise commits any fraudulent act in the course of the mortgage lending business, is guilty of a felony subject to a fine not exceeding $100,000 or imprisonment not exceeding 15 years or both. Other choices: this carries higher maxima than the general willful violation; the threshold is $300; and it is criminal rather than purely civil. Source: Md. Fin. Inst. § 11-523(c)
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