A Maryland lender paying a 2026 finder fee from proceeds follows the federal credit disclosure route. May the lender use the federal disclosure route, while still giving the separately required finder-fee rescission notice?
Correct Answer
C) Permitted: the state or the federal disclosure provisions may be used
Where the finder fee is paid from the proceeds, the lender must comply with the disclosure provisions of the state section or the federal Truth in Lending Act, and must in addition give the written notice of the refund right on rescission. Other choices: either route is allowed; no federally related limitation appears; and consent is not required. Source: Md. Com. Law § 12-805(c)
Why This Is the Correct Answer
Where the finder fee is paid from the proceeds, the lender must comply with the disclosure provisions of the state section or the federal Truth in Lending Act, and must in addition give the written notice of the refund right on rescission. Other choices: either route is allowed; no federally related limitation appears; and consent is not required. Source: Md. Com. Law § 12-805(c)
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