The State of Maryland recently enacted legislation revising the way financial institutions determine consumer creditworthiness.  Effective October 1, 2021, financial institutions must adhere to rules concerning evaluation of applications. Specifically, financial institutions will be required to consider certain verifiable alternative sources for creditworthiness, including:

  • History of rent or mortgage payments.
  • History of utility payments.
  • School attendance.
  • Work attendance.

The new law will not change the underwriting standards per se, by may modify a financial institutions policies and practices related to the information being evaluated.

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