MD HB38

Expands eligibility for affiliated insurance producer–mortgage loan originator licenses to include individuals working for mortgage lenders (not just financial institutions), with Commissioner of Financial Regulation approval required based on good standing and compliance with state and federal law

Replaces the "employer" relationship model with a "sponsor" model, requiring financial institutions or mortgage lenders to sponsor affiliated insurance producer–mortgage loan originators rather than employ them directly

Requires sponsors (financial institutions or mortgage lenders) to supervise licensees, be held jointly and severally liable for claims arising from the licensee's mortgage loan origination activities, and meet surety bond requirements

Licensees must notify the Commissioner within 10 business days if sponsorship ends, and the license enters nonactive status until new sponsorship is obtained and approved

Effective date: October 1, 2026