Bill > SB1026

This bill modifies Maryland's financial institution laws to clarify licensing requirements for certain financial entities, particularly those involved in acquiring or being assigned mortgages, mortgage loans, and installment loans. The bill creates a new definition for a "passive trust" and expands exemptions from licensing requirements for various financial entities, including banks, credit unions, government-sponsored entities, and trusts. A key provision establishes the Maryland Licensing Workgroup, a temporary study group composed of representatives from financial institutions, consumer advocacy organizations, and government agencies, tasked with examining the state's existing licensing and registration systems for financial service providers. The Workgroup is required to study the current licensing framework, consider potential impacts on residents, credit availability, and capital markets, and submit a comprehensive report to the Governor and General Assembly by December 31, 2025. The bill explicitly states its intent is to clarify existing exemptions under state law and is designed as an emergency measure, with the Workgroup provisions set to expire on June 30, 2026. The legislation aims to provide greater clarity and potentially streamline regulatory requirements for financial institutions operating in Maryland.

Budget and Finance, Business and Industry

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB1026?ys=2025RS