Banks and credit unions are two of the most common sources of consumer and business loans. These loans may be secured or unsecured, and may take the form of home mortgages, home equity loans, installment loans (loans repaid in monthly installments), auto loans, student loans, and credit cards.
In Maryland, banks and credit unions are regulated by both state and federal laws when it comes to providing loans to consumers and businesses. Secured loans, such as home mortgages and auto loans, require collateral, while unsecured loans, like most credit cards and some personal loans, do not. Home equity loans allow homeowners to borrow against the equity in their property. Installment loans are repaid over time with a set number of scheduled payments. Student loans can be obtained through the federal government or private lenders. The Maryland Commissioner of Financial Regulation oversees state-chartered banks and credit unions, ensuring compliance with state laws and regulations. Additionally, federal agencies like the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the National Credit Union Administration (NCUA) set standards and regulations for lending practices. These regulations are designed to protect consumers by ensuring fair lending practices and preventing predatory lending.