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Panel backs narrow change to allow insurance agents to contract with mortgage lenders
Summary
HB 38 would update Maryland licensing language so insurance agents co‑regulated as mortgage loan originators can contract with any mortgage lender, the sponsor and industry witnesses said, preserving consumer protections while increasing oversight by OFR.
Delegate Pam Queen told the committee House Bill 38 updates Maryland law to allow insurance agents who are co‑regulated as mortgage loan originators (MLOs) to contract with any licensed mortgage lender rather than only banks owned by their insurer. Queen said the change is a technical fix to reflect modern industry structures and will not weaken consumer protections.
Tyler Addison of Primerica and regional mortgage professional Ace Acevedo testified the amendment would give borrowers a single trust contact and align Maryland with other states while preserving licensing standards. "This structure gives consumers a single trusted point of contact without lowering the bar on training, licensing, or oversight," Acevedo said.
Vice Chair and members asked about an OFR‑drafted amendment; the sponsor confirmed the amendment has been drafted and reviewed by the Office of Financial Regulation and will be provided to the committee. The hearing concluded with the sponsor requesting a favorable report as amended.
