Sec. 05.19.01.03. Notice of Housing Counseling Programs and Services

A. Form. Unless the lender is otherwise required by federal or State law to refer a borrower to housing counseling, a lender shall provide a notice of homebuyer education or housing counseling in substantially the following form to a borrower to comply with the requirements set forth in Commercial Law Article, §12-1303, Annotated Code of Maryland:

IMPORTANT NOTICE REGARDING HOUSING COUNSELING

You are receiving this notice because you have applied for a Maryland residential mortgage loan secured by a first lien. In applying for and entering into a mortgage loan you will be required to sign complex legal documents. You should be certain that you understand the terms of the loan being offered to you in these documents before you commit in writing. If you do not pay the loan according to its terms, you could lose your home.

BE ADVISED: The State of Maryland recommends that all residential mortgage loan applicants receive homebuyer education or housing counseling from a nonprofit or government agency before signing any documents that commit them to a loan.

Free homebuyer education or housing counseling may be provided face-to-face or over the telephone. Set forth below is a list prepared by the Maryland Department of Housing and Community Development of nonprofit and government agencies that provide homebuyer education or housing counseling.

See attached List of Nonprofit and Government Agencies Offering Homebuyer Education or Housing Advice.

B. The notice required under §A(1) of this regulation shall include an attachment provided by the Department on nonprofit homebuyer education and housing counseling programs and services provided by nonprofit and government organizations certified by the U.S. Department of Housing and Urban Development that are available to residents of the State.