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

HB 1516 (Maryland Secondary Market Stability Act of 2025) exempts certain entities from Maryland's licensing requirements when they acquire mortgages, mortgage loans, or installment loans under specific conditions - such as if they do not already engage in making those loans or servicing them. The bill creates a Maryland Licensing Workgroup, composed of consumer advocates, banking/credit union representatives, nonbank mortgage businesses, and state experts, to study and recommend changes to licensing rules for financial service providers. This directly affects non-lending entities that purchase loan portfolios (e.g., investors or collectors) but do not operate as mortgage lenders or installment loan originators. The law modifies existing licensing statutes to clarify these exemptions while directing the Workgroup to propose future regulatory adjustments.