Maryland OFR Issues Guidance on Expanded AIP-MLO Licensing

Maryland's Office of Financial Regulation has issued guidance on a law that takes effect October 1 and expands the state's licensing framework for affiliated insurance producer-mortgage loan originators (AIP-MLOs) to include certain nonbank mortgage lenders.

Undere the law, AIP-MLOs may now originate loans for either an eligible financial institution, including a credit union, or a mortgage lender. The law also broadens the types of affiliated insurance-company relationships that may qualify.

For credit unions already sponsoring or working with an AIP-MLO, little substantive change is expected. Credit unions remain eligible sponsors, subject to existing application and Commissioner approval requirements.

The primary effect of the new law is to extend the AIP-MLO framework to additional mortgage lenders, rather than change requirements for participating credit unions.