MD HB1040

Requires regulated financial institutions (banks, credit unions, and nondepository mortgage companies) to develop 3-year community benefit plans with measurable goals for loans, investments, and services to low- and moderate-income individuals and underserved communities when applying for charters, licenses, or branch approvals

Commissioner of Financial Regulation must conduct a disparity study by December 1, 2025 to identify underserved counties, populations, and census tracts, with updates every 3 years

Establishes a Community Reinvestment Fund as a special nonlapsing fund to finance community development activities including affordable housing, small business financing, and climate remediation projects

Institutions issuing 300-999 single-family home loans annually must target at least one underserved county; those issuing 1,000+ loans must target at least two counties and one or more distressed census tracts

Commissioner may deny applications, impose civil penalties, require branch divestitures, or prohibit loan sales to government-sponsored enterprises for institutions that fail to meet community benefit plan goals or engage in unfair lending practices