Maryland Statutes
Subtitle 12 - Reverse Mortgage Loans Act
Section 12-1206 - Requirements for Purchasers

(a)    (1)    Except as provided in paragraph (2) of this subsection, a lender or an arranger of financing may not require a borrower to purchase an annuity, a long–term care policy, or other financial or insurance product as a condition to obtaining a reverse mortgage loan.
        (2)    A lender or an arranger of financing may require a borrower to purchase title insurance, hazard, flood, or other peril insurance, and any other financial or insurance product that is required for reverse mortgage loans insured under 12 U.S.C. § 1715z–20.
    (b)    A lender or an arranger of financing may not refer a borrower to any person for the purchase of an annuity or any other financial or insurance product before the later of:
        (1)    The closing of the reverse mortgage loan; or
        (2)    The expiration of the borrower’s right to rescind the reverse mortgage loan agreement.
    (c)    This section does not prohibit a lender or an arranger of financing from offering to a borrower, or referring a borrower to a person for the purchase of:
        (1)    Title insurance;
        (2)    Hazard, flood, or other peril insurance; or
        (3)    Other products that are customary under a reverse mortgage loan.

Structure Maryland Statutes