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Mortgage Examination FAQs - Financial Regulation

Last reviewed/updated: August 11, 2026

This resource has been created to provide clear and comprehensive answers to common questions regarding the examination process for mortgage lenders, brokers, and servicers under Maryland law. By ensuring adherence to state laws and regulations, we aim to promote transparency and uphold the integrity of Maryland's mortgage industry.

  1. Why is it important to respond to our phone calls, emails, and messages within the NMLS or SES system?
    Failure to respond could impact your overall examination score and may result in penalties, fines, issues with renewal, suspension, and revocation or denial of license.
  2. Why do I need to be examined?
    MD Code Ann., Financial Institutions Article, § 11-515     requires the Office of Financial Regulation to examine Mortgage Lenders, Brokers, and Servicers.
  3. When will I be examined?
    You will be examined 18 months after your initial licensure and at least once every 60 months thereafter.
  4. Do I need to be examined if I haven’t made, brokered, or serviced any loans?
    Mortgage Exams are not based on the volume of business or total loan amount. All actively-licensed Maryland Mortgage Lenders will be examined.
  5. Can I surrender my license to avoid an examination?
    If the examination has not yet begun and you surrender your license, the examination will not proceed. However, once the examination process is underway, surrendering your license will not exempt you from it. The examination will cover the period beginning either from the date of your initial licensure or from your most recent examination, whichever is more recent.
  6. What documents should be in my origination files?
    A loan file should include, but is not limited to, the documents on the attached checklist (see page 3). It is always preferable to send the full file.
  7. How or what resources will the state of Maryland use to complete my examination?
    The SES system will be used to complete your Maryland Mortgage Lenders License Examination. The following link will give you some information about SES. https://www.csbs.org/aboutSES Please note access to the active site will be sent when we start the onboarding process.
  8. How will I know when the exam is over?
    The Report of Examination (ROE) will be issued through the SES system approximately ten (10) days after your Exit Meeting.
  9. Will I be billed for this examination?
    Yes, you will receive the bill through the NMLS system per COMAR 09.03.06.22D
  10. How long do I have to pay the bill?
    You have thirty (30) days to pay the bill without penalty. If the invoice remains unpaid after 90 days, we will file a claim against your bond. If the bond claim is denied we will refer the obligation to Maryland’s Central Collections Unit. Failure to pay can result in penalties, fines, and loss of your license.
  11. If I am a broker, can the lender store files for me?
    Brokers are responsible for maintaining copies of their own files. If the lender goes out of business, you will still be held responsible for submitting files for review.
  12. Can I let the lender issue my broker agreement?
    This is not advisable. A broker agreement is not merely a disclosure; it is an agreement between you and the borrower. You are responsible for your broker agreement and in accordance with Md. Code Ann., Commercial Law Article §12-805 & §12-807 as well as COMAR .09.03.06.08 & 09.03.06.12 any violations could result in a refund to borrowers in an amount up to three (3) times the amount of the broker fee.
  13. Who do I contact for SES technical support?
    If you need SES technical support, please contact the Licensee Assistance Center at 1-800-269-6189.
  14. I am no longer making, brokering, or servicing mortgage loans and I have surrendered my license. Can I destroy all my records? - Or - Now that my examination is complete, can I destroy all my records?
    No. COMAR 09.03.06.05(A)5(a) requires a lender to retain records for 61 months after a loan is denied, repayment of the loan is made in full, or the loan is sold, whichever occurs first.
    COMAR .09.03.06.05(A)5(b) requires a mortgage servicer to retain records for 61 months after the final payment is made or the right to service the loan under either a servicing or sub-servicing agreement is terminated or transferred, whichever occurs first.
    A broker should retain records of the mortgage loan for 61 months after the mortgage loan is made or denied. See COMAR 09.03.06.05(A)(5)(c)
  15. How long do I need to maintain my files?
    As detailed above, you must maintain your files for no less than 61 months after the completion of that file.
  16. As a broker, should I keep my own loan list?
    Yes. Keeping track of your loan applications and where they end up helps you run your business smoothly. More importantly, state examiners require you to show this record during your state examinations.
    • Format: Save your list in an Excel spreadsheet.
    • What to include: Key details like the borrower's name, property address, loan amount, lien position, loan type, and lender.
    To get the full list of everything you need to track for state exams, send us an email at [email protected].
  17. If I am a “correspondent lender” do I need a broker agreement?
    There is no definition in Maryland of a “correspondent lender”. In Maryland, you are either a broker, lender, or servicer. Definitions for each can be found below or in Maryland Financial Institutions Code §11-501.
  18. Do I need to issue a broker agreement if the lender pays my broker fee?
    Generally yes, unless you can prove the borrower is not charged the cost of your fee. For example, a broker fee included in a “credit for interest rate chosen” is part of a credit to the borrower toward closing costs and is thus paid to you on the borrower’s behalf; it is therefore a “finder’s fee.” You may not receive a finder’s fee unless it is pursuant to a signed broker agreement.
  19. If I service less than 50 loan files in a year, do I need a mortgage lender license?
    Yes, you must have a mortgage lender license regardless of the number of loans you service unless you made the loan and maintain ownership of the whole loan.
  20. Can I store my files electronically or store my books and records at a location other than my place of business?
    Yes, Md Code Ann., Financial Institutions Article §11-513 allows you to store files electronically or at another location. The method of storage is considered approved if the licensee:
    1. Completes an attestation in the format prescribed by the Commissioner, and
    2. Uploads a copy of the attestation to the Nationwide Multistate Licensing System (NMLS).

    See attestation form
    Reference: COMAR 09.03.06.05

Questions & Concerns

If you have additional questions, require further information, or have concerns related to the mortgage examination process, please contact Christine Brooks or Susan Johnson at [email protected]


Mortgage Examination Loan Document Checklist

Please provide the following documents in your loan files.

TRID Loans

  • Application (1003 or Uniform Residential Loan Application)- provide initial and final.
  • Broker Agreement (if broker is involved in the transaction.)
  • Loan Estimate (If you are acting as the broker on the file) provide 1st & last issued LE.
  • Loan Estimate (If you are acting as the lender on the file) provide all issued.
  • Change of Circumstance forms- provide all with the corresponding LE.
  • Net Tangible Benefit Form- provide all issued (for refinances only).
  • Brokers provide anti-steering disclosures.
  • Credit Report and all invoices for fees collected.
  • Appraisal and all invoices for the fees collected.
  • Appraisal Notice or Waiver
  • Any other 3rd party invoice charged to the borrower at closing.
  • Affiliated Business Disclosure
  • Any waiver of a borrower’s right or rights.
  • Right of Rescission or Right to Cancel
  • Letter of denial or adverse action
  • E-sign Disclosure
  • Ability to Repay documentation.
  • Housing Counseling Notice
  • Secondary mortgage disclosure (if applicable)
  • Balloon payment disclosures (if applicable)
  • Binding Arbitration disclosures (if applicable)
  • Escrow Account Waiver (if applicable)
  • Intent to Proceed
  • Closing Disclosure (CD)
  • Deed of Trust
  • Note or Promissory Note
  • Private Mortgage Insurance Initial Disclosure/ Amortization
  • Copy of check or ACH deposit showing broker fee collected or general ledger showing fee collected.

Non-TRID Loans

  • *** Financing Agreement/Commitment Letter (non-TRID Loans)

Reverse Mortgages/HECM

  • * Total Annual Loan Costs disclosure (TALC)- reverse mortgage
  • * Reverse Mortgage Counseling Memo and invoice

Mortgage Examination Definitions

These definitions are found in MD Code, Financial Institutions, § 11-501; 11-805; and COMAR 09.03.06.02.
Broker: A mortgage broker is an individual or business entity that receives compensation, whether directly or indirectly from a borrower to obtain a mortgage loan.
This definition includes a broker who:

  1. Assists a borrower in obtaining a mortgage loan;
  2. Negotiates the terms of a mortgage loan on behalf of a borrower;
  3. Engages in activities related to securing a mortgage loan, such as collecting information from the borrower, or arranging for a lender to provide the loan.

Lender: A mortgage lender is an individual or business entity that makes a mortgage loan to any person.
This definition includes a lender who:

  1. Provides or offers to provide mortgage loans directly to borrowers; and
  2. Funds or originates a mortgage loan or acts as an intermediary in the mortgage loan process by engaging in the lending of money to borrowers secured by mortgages or deeds of trust on residential or commercial real property.

Servicer: A mortgage servicer receives payments on mortgage loans directly from borrowers for distribution to another person.
“Mortgage servicer” includes a person that engages in one or more of the following actions for the benefit of other persons in connection with mortgage loans:

  1. Performs the routine administration of mortgage loans as agent of a servicer or MSR investor under the terms of a subservicing contract;
  2. Invests in and owns mortgage servicing rights and relies on subservicers to administer the mortgage loans on its behalf;
  3. Collects or receives payments directly from borrowers for distribution to the owner of the mortgage loan or another third party, including a master servicer;
  4. Evaluates borrower eligibility for loss mitigation options;
  5. Communicates with the borrower regarding loss mitigation options;
  6. Is responsible for supervision of third parties that take action to protect a secured party’s interest in the property under the applicable security instrument, such as maintenance of hazard and mortgage insurance coverage and preservation of the property; or
  7. Conducts or supervises the foreclosure process, except if the person is an attorney representing a mortgagee or its successors and assigns, or is acting as a substitute trustee in a foreclosure action under a deed of trust.