A Maryland borrower paid a finder fee in 2026 and the loan transaction is never made. Must the finder fee be refunded when the loan transaction is not made?
Correct Answer
D) A refund of the finder fee is owed on that ground alone
A borrower is entitled to a refund of any finder fee paid to a mortgage broker if the loan transaction is not made to the borrower, or if the borrower exercises the right to rescind under the federal Truth in Lending Act or any similar federal or state law. Other choices: the work done is not what the entitlement turns on; fault is not an element; and no request window appears. Source: Md. Com. Law § 12-806(1)
Why This Is the Correct Answer
A borrower is entitled to a refund of any finder fee paid to a mortgage broker if the loan transaction is not made to the borrower, or if the borrower exercises the right to rescind under the federal Truth in Lending Act or any similar federal or state law. Other choices: the work done is not what the entitlement turns on; fault is not an element; and no request window appears. Source: Md. Com. Law § 12-806(1)
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