Statutory Elections
Statutory Election in Maryland
Maryland law permits a lender to elect to make a loan under the Maryland Credit Grantor Law if the choice to do so is specified in the loan documents [MD COML §12-913.1 and §12-1013.1]. If this election is not made and documented in writing, then other laws in Maryland govern the loan.
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No Statutory Election - If you select this option, the Compliance Review service will apply the Interest and Usury Provisions to all Maryland loans consummated on or after January 1, 2019.
- Credit Grantor Law Election (for All Loans) - If you select this option, the Encompass Compliance Service will:
Apply the Credit Grantor Revolving Credit Provisions (Title 12, Subtitle 9) to all Maryland open-end loans consummated on or after January 1, 2019.
Apply the Credit Grantor Closed End Credit Provisions (Title 12, Subtitle 10) to all Maryland closed-end loans consummated on or after January 1, 2019.
- Credit Grantor Law Election (for 1-4 unit, Junior Liens Only) -If you select this option, the Encompass Compliance Service will:
Apply the Credit Grantor Revolving Credit Provisions (Title 12, Subtitle 9) to all open-end, subordinate lien loans secured by a 1-4 unit dwelling on real property located in Maryland consummated on or after January 1, 2019.
- Apply the Credit Grantor Closed End Credit Provisions (Title 12, Subtitle 10) to all closed-end, subordinate lien loans secured by a 1-4 unit dwelling on real property located in Maryland consummated on or after January 1, 2019.
- Credit Grantor Law Election (for 1-4 Unit Only) - If you select this option, the Encompass Compliance Service will:
Apply the Credit Grantor Revolving Credit Provisions (Title 12, Subtitle 9) to all open-end loans secured by a 1-4 unit dwelling on real property located in Maryland consummated on or after January 1, 2019.
- Apply the Credit Grantor Closed End Credit Provisions (Title 12, Subtitle 10) to all closed-end loans secured by a 1-4 unit dwelling on real property located in Maryland consummated on or after January 1, 2019.
DO NOT select any of the Credit Grantor Law Election options unless you have confirmed that the loan documents contain a written election to use the Credit Grantor Law for that type of loan. Please contact your ICE Mortgage Technology sales representative for more information.
Statutory Election in Kansas
Kansas law specifies the loan types subject to the Kansas Usury Law and to the Kansas Uniform Consumer Credit Code (UCCC). However, the Kansas Usury Law permits the parties to a loan to agree in writing to make the transaction subject to the UCCC for loans that would otherwise be subject to the Usury law. (See Kan. Stat. Ann. §16-207(i)(3).)
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No Statutory Election - If you select this option, the Compliance Review service will apply the Kansas Usury Law to all first lien loans with a loan-to-value (LTV) of 100% or less and apply the Kansas Uniform Consumer Credit Code (UCCC) to all subordinate lien loans and all fixed rate first lien loans with a LTV of more than 100%.
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Kansas UCCC Election For All Loans - If you select this option, the Compliance Review service will apply the Kansas UCCC to all loans secured by real property in Kansas.
See Also