Maryland Legal Alert for Financial Services

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Mortgage Assumption Guidance from Commissioner

FDIC Proposes Further Revisions to Digital Deposit Signage Rule

Mortgage Assumption Guidance from Commissioner

As we reported in our September Maryland Legal Alert, many of our clients have been asking about Maryland law changes involving mortgage assumptions that took effect on October 1, 2025. The Maryland Legislature passed HB 1018 (enacted as Chapter 202) during the 2025 legislative session. The new law imposes several disclosure requirements (both for new loans on and after the October 1, 2025 effective date and for existing loans that are covered by the new law). The new law applies to non-government-backed mortgage loans that are “conventional home mortgage loans” under Maryland law that are secured by a dwelling. New disclosures are required describing that a covered loan may be assumed under certain circumstances (in connection with the granting of a decree of absolute divorce). Lenders may verify that a divorced spouse borrower qualifies to repay the loan without the ex-spouse as a co-borrower.  

The Maryland Banking Commissioner released an additional industry advisory on September 25, 2025. A prior industry advisory was released on August 19, 2025.  The latest industry advisory addressed the timing of required application disclosures under the new law and indicated that the Commissioner “will consider a lender compliant with the disclosure requirement if the lender provides the written disclosure before receiving an applicant’s financial documentation (income, assets, and debts) needed to assess creditworthiness and ability to repay the loan.” The advisory further provided that the Commissioner “will also presume compliance if the disclosure is provided to the applicant within three business days of receipt of a complete application.”

For more information, contact Christopher R. Rahl.

Contact Christopher R. Rahl | 410-576-4222

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FDIC Proposes Further Revisions to Digital Deposit Signage Rule

On August 21, 2025, the Federal Deposit Insurance Corporation (FDIC) proposed revisions to its Official Sign and Advertising Rule, codified at 12 CFR Part 328, which was previously set to take effect earlier this year. 

The FDIC’s proposal aims to reduce compliance burdens by eliminating strict formatting and color code requirements for the FDIC sign on digital platforms. It also provides more flexibility in how the ‘clear and conspicuous’ standard is applied to ensure consumer visibility. The proposal also refines where FDIC and non-deposit signage must appear on digital platforms. Specifically, the FDIC digital sign would be required only on login and account-opening screens, rather than on all landing pages. Non-deposit signage, such as for cryptocurrency or investment products, would be limited to pages primarily dedicated to those offerings.  

Additionally, the proposal simplifies signage requirements for ATMs and similar devices, limiting display obligations to the initial transaction page or screen for non-deposit transactions. ATMs installed before January 1, 2027, or those not supporting non-deposit transactions, have the option to display either the digital or physical FDIC sign. The proposal further clarifies that non-deposit signage would only apply to ATMs that accept deposits and also offer non-deposit products, and only on screens visible to the institution’s customers.  

Finally, the proposal would allow financial institutions to meet the one-time notice requirement for customers accessing non-financial institution third-party platforms through a brief, dismissible notification, either manually closed or automatically after at least three seconds. 

Comments on the proposed rule are due by October 20, 2025. The FDIC has proposed a new compliance date of January 1, 2027.

Practical Pointer: Financial institutions and service providers should begin assessing their digital account-opening, login, and non-deposit product screens to identify where signage adjustments may be necessary. It is advisable to review the FDIC’s examples of compliant signage placement that satisfy the “clear, continuous, and conspicuous” display requirement.

For more information, contact Tamia J. Morris.

Contact Tamia J. Morris | 410-576-4021

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