Bill > HB1516

This bill establishes a new framework for licensing and exemptions in Maryland's financial services sector, with two primary components. First, it creates a new legal definition for a "passive trust" and exempts such trusts from mortgage lending licensing requirements, essentially allowing certain trusts that acquire mortgage loans without actively making or servicing loans to operate without needing a specific license. Second, the bill establishes the Maryland Licensing Workgroup, a temporary study group composed of representatives from financial institutions, consumer advocacy organizations, and state regulators, tasked with comprehensively reviewing the state's existing financial services licensing systems. The Workgroup will investigate current licensing statutes, evaluate the effectiveness of existing registration systems, and explore potential expansions of licensing requirements, with a mandate to consider impacts on state residents, loan providers, credit availability, credit costs, and capital markets. The Workgroup is required to submit a detailed report of its findings and recommendations to the Governor and General Assembly by December 31, 2025. The bill is designated as an emergency measure and will remain in effect through June 30, 2026, after which the Workgroup provisions will automatically expire.

Budget and Finance, Business and Industry, Government Affairs

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1516?ys=2025RS