Legal Bulletins
No Private Right of Action for (Some) Violations of the Maryland Mortgage Lender Laws
Thrasher v. Homecomings Financial Network, Inc., 154 Md. App 77, 838 A.2d 392, cert. denied 380 Md. 619, 846 A.2d 402 (2003)
No private cause of action exists under the Maryland Mortgage Lender Law (MMLL) against a licensed mortgage lender that, in violation of the MMLL, allows secondary mortgage loan documents to be executed at a place for which the lender is not licensed to conduct business. The Maryland Court of Special Appeals upheld a circuit court opinion that the MMLL created a private cause of action only against lenders who fail to obtain licenses, and not against licensed lenders who violate the MMLL. Licensee violations may be enforced by the Maryland Commissioner of Financial Regulation.