§ 19-14.10-17. Prohibited acts and practices.
It is a violation of this chapter for a person or individual subject to this chapter
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 subject to this chapter 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, or assist or aid and abet any person in the conduct of business
under this chapter without a valid license as required under this chapter;
(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 or regulations promulgated under this chapter,
or fail to comply with any other state or federal law, including the rules and regulations
thereunder, applicable to any business authorized or conducted under this chapter;
(9) Make, in any manner, any false or deceptive statement or representation with regard
to the rates, points, or other financing terms or conditions for a residential mortgage
loan, or engage in bait-and-switch advertising;
(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 director, or the director's designee, 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 truthfully account for monies belonging to a party to a residential mortgage
loan transaction; or
(15) Act in the capacity of and compensated as both a real estate agent and mortgage loan
originator in the same transaction.