The Maryland Office of Financial Regulation (OFR) has issued updated regulatory guidance following the enactment of legislation which exempts certain types of mortgage trusts from licensing requirements.

House Bill 1516, which was championed by the MD|DC Credit Union Association, exempts two types of trusts from Maryland’s mortgage lender and installment loan licensing laws: passive trusts and government trusts. This includes trusts that acquire or are assigned mortgage loans without originating, brokering, or servicing them, as well as those established by federal government entities.

OFR encourages entities that believe they qualify for these exemptions to review the statute and consult legal counsel to confirm their eligibility. The agency also reaffirmed that commercial lenders making loans exclusively for business purposes remain outside the scope of mortgage lender and installment loan licensing requirements under Maryland law.