New Statutory Provision on Occupational License Pre-determination Requests - Financial Regulation

August 19, 2026

This guidance is for individuals who intend to apply for an individual license through the Maryland Office of Financial Regulation (OFR) and would like to seek pre-determination review due to a criminal record. However, this does not apply to Mortgage Loan Originators (MLOs). Please read more below.

The Maryland Office of Financial Regulation (OFR) issues this formal guidance to provide information on the recently enacted House Bill 557 (HB 557). HB 557 requires certain departments to provide individuals applying for an occupational license or certificate an ability to obtain a pre-licensing determination with respect to their criminal history.

Except for defined reasons, Maryland prohibits a department of the State from denying an individual an occupational license based solely on the individual’s criminal history.

On April 28, 2026, Governor Wes Moore signed HB 557 into law (effective date July 1, 2026). The law amends Maryland Criminal Procedure § 1-209 to allow certain individuals to request pre-determination of whether their criminal history disqualifies them from an occupational license. Upon request, a department responsible for issuing that occupational license must advise the individual if the department would deny the application based solely upon the individual’s criminal history. If a department determines it would, that department must provide the individual with a written explanation. A department is bound by its pre-determination unless a direct and material adverse change occurs to the individual’s criminal history.

The law permits individuals to request a re-review after one year or if the applicant’s criminal history materially changes. A department may charge an individual a fee of no more than $100 to provide a pre-determination.

While the law applies to the OFR, federal law governs Mortgage Loan Originators (MLOs); the General Assembly therefore excluded MLOs from the law. Consequently, an individual seeking an MLO license may not request a licensing pre-determination, but an individual seeking any other OFR-issued license as a sole proprietor may now request such a pre-determination.

Note that the law applies only to individuals and does not apply to business entities such as corporations, partnerships, and limited liability companies seeking a license or certificate.

Contact

Individuals with questions or who desire to request a licensing pre-determination as set forth herein should contact the Office of Financial Regulation, Assistant Commissioner for Financial Services Licensing and Supervision, Clifford Charland, by phone at 410-230-6167 or by email at [email protected].