Financial Institutions - Consumer Credit - Application of Licensing Requirements (Maryland Secondary Market Stability Act of 2025)

SB 1026, the Maryland Secondary Market Stability Act of 2025, exempts certain entities from needing a financial services license when they acquire mortgages, mortgage loans, or installment loans under specific conditions. It applies to buyers who do not otherwise make mortgages (for mortgage acquisitions), do not engage in mortgage lending (for mortgage loans), or rely on others to service loans without making them themselves (for installment loans). The bill also establishes the Maryland Licensing Workgroup, composed of regulators, consumer advocates, banking representatives, and experts, to study and recommend changes to licensing requirements for financial service providers. This bill directly affects non-bank investors and secondary market entities purchasing loans without operating as lenders.