A Maryland lender applicant in 2026 was convicted of felony theft 6 years ago. Does the conviction require denial under the mortgage lender application rule?
Correct Answer
A) The Commissioner shall deny: a fraud, theft or forgery felony within 10 years
The Commissioner shall deny an application filed by an individual convicted within the last 10 years of a felony involving fraud, theft or forgery, and the same applies to an entity with a director, officer, partner, member or owner of 10 percent or more so convicted. Other choices: this branch is mandatory rather than discretionary; theft and forgery sit alongside fraud; and the window is 10 years. Source: Md. Fin. Inst. § 11-506(c)(2)
Why This Is the Correct Answer
The Commissioner shall deny an application filed by an individual convicted within the last 10 years of a felony involving fraud, theft or forgery, and the same applies to an entity with a director, officer, partner, member or owner of 10 percent or more so convicted. Other choices: this branch is mandatory rather than discretionary; theft and forgery sit alongside fraud; and the window is 10 years. Source: Md. Fin. Inst. § 11-506(c)(2)
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