(1)A licensee,
an officer, an employee, or an agent of the licensee shall not:
(a)Assess a late charge if all payments due are received before the
date upon which late charges are authorized in the underlying mortgage or trust deed or other loan documents;
(b)Delay closing of a residential mortgage
loan for the purpose of increasing interest, costs, fees, or charges payable
by the borrower;
(c)Misrepresent or conceal material facts or make false promises intended
to influence, persuade, or induce an applicant for a residential mortgage loan or a borrower to take
a residential mortgage
loan or cause or contribute to such a misrepresentation by any person acting
on a licensee's or any other lender's behalf;
(d)Misrepresent to, or conceal from, an applicant for a residential mortgage loa
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(1) A licensee,
an officer, an employee, or an agent of the licensee shall not:
(a) Assess a late charge if all payments due are received before the
date upon which late charges are authorized in the underlying mortgage or trust deed or other loan documents;
(b) Delay closing of a residential mortgage
loan for the purpose of increasing interest, costs, fees, or charges payable
by the borrower;
(c) Misrepresent or conceal material facts or make false promises intended
to influence, persuade, or induce an applicant for a residential mortgage loan or a borrower to take
a residential mortgage
loan or cause or contribute to such a misrepresentation by any person acting
on a licensee's or any other lender's behalf;
(d) Misrepresent to, or conceal from, an applicant for a residential mortgage loan
or a borrower material facts, terms, or conditions of a residential mortgage loan to which the licensee
is a party;
(e) Fail to make disclosures
as required by the Residential Mortgage Licensing Act and any other applicable
state or federal law including regulations thereunder;
(f) Engage in any transaction,
practice, or business conduct that is not in good faith or that operates a
fraud upon any person in connection with the making of any residential mortgage loan;
(g) Receive compensation for
acting as a mortgage banker or
mortgage loan originator if the licensee has otherwise acted as
a real estate broker or agent in connection with the sale of the real estate
which secures the residential mortgage
loan unless the licensee has provided written disclosure to the person from
whom compensation is collected that the licensee is receiving compensation
both for acting as a mortgage banker or
mortgage loan originator and for acting as a real estate broker
or agent;
(h) Advertise, display, distribute,
broadcast, televise, or cause or permit to be advertised, displayed, distributed,
broadcasted, or televised, in any manner, including by the Internet, any false,
misleading, or deceptive statement or representation with regard to rates,
terms, or conditions for a residential mortgage
loan or any false, misleading, or deceptive statement regarding the qualifications
of the licensee or of any officer, employee, or agent thereof;
(i) Record a lien on real
property if money is not available for the immediate disbursal to the borrower
unless, before that recording, the licensee (i) informs the borrower in writing
of the reason for the delay and of a definite date by which disbursement shall
be made and (ii) obtains the borrower's written permission for the delay unless
the delay is required by any other state or federal law;
(j) Fail to account for or
deliver to any person personal property obtained in connection with the mortgage
banking business, including, but not limited to, money, funds, deposits, checks,
drafts, mortgages, trust deeds, or
other documents or things of value which the licensee was not entitled to
retain;
(k) Fail to disburse, without
just cause, any funds in accordance with any agreement connected with the
mortgage banking business;
(l) Collect fees and charges
on funds other than new funds if the licensee makes a residential mortgage loan to refinance an existing residential mortgage loan
to a current borrower of the licensee within twelve months after the previous residential mortgage loan
made by the licensee;
(m) Assess any fees against
the borrower other than those which are reasonable and necessary, including
actual charges incurred in connection with the making, closing, disbursing,
servicing, extending, transferring, or renewing of a loan, including, but
not limited to, (i) prepayment charges, (ii) delinquency charges, (iii) premiums
for hazard, private mortgage, disability, life, or title insurance, (iv) fees
for escrow services, appraisal services, abstracting services, title services,
surveys, inspections, credit reports, notary services, and recording of documents,
(v) origination fees, (vi) interest on interest after default, and (vii) costs
and charges incurred for determining qualification for the loan proceeds and
disbursement of the loan proceeds;
(n) Allow the borrower to
finance, directly or indirectly, (i) any credit life, credit accident, credit
health, credit personal property, or credit loss-of-income insurance or debt
suspension coverage or debt cancellation coverage, whether or not such coverage
is insurance under applicable law, that provides for cancellation of all or
part of a borrower's liability in the event of loss of life, health, personal
property, or income or in the case of accident written in connection with
a residential mortgage
loan or (ii) any life, accident, health, or loss-of-income insurance without
regard to the identity of the ultimate beneficiary of such insurance. For
purposes of this section, any premiums or charges calculated and paid on a
periodic basis that are not added to the principal of the loan shall not be
considered financed directly or indirectly by the creditor;
(o) Falsify any documentation
relating to a residential mortgage
loan or a residential mortgage
loan application;
(p) Recommend or encourage
default on an existing loan or other debt prior to and in connection with
the closing or planned closing of a residential mortgage
loan that refinances all or any portion of such existing loan or debt;
(q) Borrow money from, personally
loan money to, or guarantee any loan made to any customer or applicant for
a residential mortgage
loan;
(r) Obtain a signature on
a document required to be notarized in connection with a residential mortgage loan or a residential mortgage loan application unless
the qualified notary public performing the notarization is physically present
at the time the signature is obtained;
or
(s) 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.
(2) Any person who violates any provision
of subsection (1) of this section is guilty of a Class III misdemeanor.
(3) Any person who violates any provision of subsection (1) of this
section is liable to the applicant for a residential mortgage
loan or to the borrower for the fees, costs, and charges incurred in connection
with obtaining or attempting to obtain the residential mortgage
loan, damages resulting from such violation, interest on the damage from the
date of the violation, and court costs, including reasonable attorney's fees.