To:All Mortgage Lender Licensees

Instructions

to:All Mortgage Lender Licensees

from:Calvin E. Clark, Assistant Commissioner

subject:Mortgage Lender’s Sworn Activity Statement

date:December 30, 2004

Section 09.03.06.16(G) of the Code of Maryland Regulation requires all Maryland Mortgage Lender Licensees to maintain the required surety bond, letter of credit, or trust account throughout the entire licensing term. The total amount of the surety bond, letter of credit, or trust account must be at least the amount set forth in Financial Institutions Article, Section 11-508, Annotated Code of Maryland. All licensees must recalculate the amount of the required surety bond, letter of credit, or trust account by completing the Mortgage Lender’s Sworn Activity Statement enclosed with this notice.

The calculation of mortgage lending activity must include all loans secured by property located in Maryland during the 2004 calendar year. The Mortgage Lender’s Sworn Activity Statement must be filed with the Commissioner’s office by February 15, 2005. If you are required to adjust or change the amount of your surety bond, letter of credit, or trust account, you must provide the Commissioner satisfactory proof of the adjustment or change. Acceptable form of any adjustment or change may include an original surety bond “endorsement” or “rider,” an amended letter of credit, or an amended trust account notification from your financial institution. Any change in the level of your surety bond, letter of credit, or trust account must be effective as of January 1, 2005. You must provide verification from your bond company of the increased amount and that the bond is continuous.

Please consider the following when completing the activity statement:

If your current surety bond, letter of credit, or trust account is in the maximum amount($75,000 or $375,000 blanket bond) required by Maryland law, complete Section A of the Sworn Activity Statement and Affidavit section only.
If your current surety bond, letter of credit, or trust account is less than the maximum amount required by Maryland law, complete Section B and the Affidavit section only.
If you have more than one licensed office, please consolidate all lending activity information on one sworn activity statement only. Please attach an itemized list of all license registration numbers for each branch office included in the consolidated total.
Please indicate your business name and license registration certificate number in the box provided on the Sworn Activity Statement.
To determine if any adjustment to your current surety bond, letter of credit, or trust account is required, please refer to the “Surety Bond, Letter of Credit and Trust Account Table” located on the lower right corner of the sworn activity statement.
You must sign, notarize, and return the Sworn Activity Statement form to the Commissioner’s office by February 15, 2004, including an original surety bond “rider” or “endorsement” necessary to adjust your current bond, letter of credit, or trust account amount if applicable.
If you need additional Sworn Activity Statement forms, you can download copies from our website You may contact us directly at 410-230-6155 if you have any additional questions regarding the filingrequirements.
FAILURE TO COMPLETE AND RETURN THE MORTGAGE LENDER SWORN ACTIVITY STATEMENT MAY RESULT IN A MONETARY PENALTY.