§ 2241. Prohibited acts and practices
It is a violation of this chapter for a person or individual to:
(1) directly or indirectly employ any scheme, device, or artifice to defraud or mislead
borrowers or lenders or to defraud any person;
(2) engage in any unfair or deceptive practice toward any person;
(3) obtain property by fraud or misrepresentation;
(4) solicit or enter into a contract with a borrower that provides in substance that the
person or individual may earn a fee or commission through “best efforts” to obtain
a loan even though no loan is actually obtained for the borrower;
(5) solicit, advertise, or enter into a contract for specific interest rates, points,
or other financing terms unless the terms are actually available at the time of soliciting,
advertising, or contracting;
(6) conduct any business covered by this chapter without holding a valid license as required
under this chapter, to assist or aid and abet any person in the conduct of business
under this chapter without a valid license as required under this chapter, or to refer
a person to, or receive a fee from, any person who must be licensed but was not licensed
as of the time the licensee’s services were provided;
(7) fail to make disclosures as required by this chapter and any other applicable State
or federal law, including regulations thereunder;
(8) fail to comply with this chapter or rules adopted under this chapter, or fail to comply
with any orders or directives from the Commissioner, or fail to comply with any other
State or federal law, including the rules thereunder, applicable to any business authorized
or conducted under this chapter;
(9) make, in any manner, any false or deceptive statement or representation, including
with regard to the rates, points, or other financing terms or conditions for a mortgage
loan, to engage in bait and switch advertising, or to represent to the public that
the licensee is able to perform an activity requiring licensure unless such licensee
is duly licensed or is exempt from licensure;
(10) negligently make any false statement or knowingly and willfully make any omission
of material fact in connection with any information or reports filed with a governmental
agency or the Nationwide Mortgage Licensing System and Registry or in connection with
any investigation conducted by the Commissioner or another governmental agency;
(11) make any payment, threat, or promise, directly or indirectly, to any person for the
purposes of influencing the independent judgment of the person in connection with
a residential mortgage loan, or make any payment, threat, or promise, directly or
indirectly, to any appraiser of a property, for the purposes of influencing the independent
judgment of the appraiser with respect to the value of the property;
(12) collect, charge, attempt to collect or charge, or use or propose any agreement purporting
to collect or charge any fee prohibited by this chapter;
(13) cause or require a borrower to obtain property insurance coverage in an amount that
exceeds the replacement cost of the improvements as established by the property insurer;
(14) fail to account truthfully for monies belonging to a party to a mortgage loan transaction;
(15) fail to identify clearly and conspicuously the licensee and the purpose of the contract
in its written and oral communications with a consumer; or
(16) fail to provide the ability to opt out of any unsolicited advertisement communicated
to a consumer via an email address; to initiate an unsolicited advertisement via email
to a consumer more than 10 business days after the receipt of a request from such
consumer to opt out of such unsolicited advertisements; or to sell, lease, exchange,
or otherwise transfer or release the email address or telephone number of a consumer
who has requested to opt out of future solicitations. (Added 2009, No. 29, § 1; amended 2017, No. 22, § 28, eff. May 4, 2017.)