For a conventional home mortgage loan governed by Maryland Financial Institutions section 11-522, a lender first gives the applicant written disclosure of the divorce-related assumption provision at closing, after the loan application was completed. Was the disclosure timely?
Correct Answer
D) Too late: it must be disclosed before the application is completed
A mortgage lender or mortgage lending business shall disclose an assumption provision in any conventional home mortgage loan in writing to a loan applicant before the completion of the loan application. Other choices: the deadline sits ahead of the application being completed rather than at settlement or three days after; and an acknowledgment does not cure late delivery. Source: Md. Fin. Inst. § 11-522(b)
Why This Is the Correct Answer
A mortgage lender or mortgage lending business shall disclose an assumption provision in any conventional home mortgage loan in writing to a loan applicant before the completion of the loan application. Other choices: the deadline sits ahead of the application being completed rather than at settlement or three days after; and an acknowledgment does not cure late delivery. Source: Md. Fin. Inst. § 11-522(b)
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