22750-22755

FINANCIAL CODE
SECTION 22750-22755




22750.  (a) If any amount other than, or in excess of, the charges
permitted by this division is willfully charged, contracted for, or
received, the contract of loan is void, and no person has any right
to collect or receive any principal, charges, or recompense in
connection with the transaction.
   (b) If any provision of this division is willfully violated in the
making or collection of a loan, the contract of loan is void, and no
person has any right to collect or receive any principal, charges,
or recompense in connection with the transaction.



22751.  (a) If any amount other than or in excess of the charges
permitted by this division is charged or contracted for, or received,
for any reason other than a willful act of the licensee, the
licensee shall forfeit all interest and charges on the loan and may
collect or receive only the principal amount of the loan.
   (b) Subdivision (a) shall not apply to an error in computation if
(1) the licensee shows by a preponderance of evidence that the
violation was not intentional and resulted from a bona fide error
notwithstanding the maintenance of procedures reasonably adapted to
avoid any such error, and (2) within 60 days of discovering the error
the licensee notifies the borrower of the error and makes whatever
adjustments in the account are necessary to correct the error.



22752.  (a) If any provision of this division is violated in the
making or collection of a loan, for any reason other than a willful
act of the licensee, the licensee shall forfeit all interest and
charges on the loan and may collect or receive only the principal
amount of the loan.
   (b) Subdivision (a) shall not apply to a violation if (1) the
licensee shows by a preponderance of evidence that the violation was
not intentional and resulted from a bona fide error notwithstanding
the maintenance of procedures reasonably adapted to avoid any such
error, and (2) within 30 days of discovering the error the licensee
notifies the borrower of the error and rectifies the error by making
the appropriate changes in the documents or account and by taking
other action necessary to correct the error.




22753.  Any person who willfully violates any provision of this
division or who willfully violates any rule or order adopted pursuant
to this division, shall, upon conviction, be punished by a fine of
not more than ten thousand dollars ($10,000), by imprisonment in a
county jail for not more than one year or in the state prison, or by
both that fine and imprisonment. However, no person may be imprisoned
for the violation of any rule or order unless he or she had
knowledge of the rule or order. Conviction under this section shall
not preclude the commissioner from exercising the authority in
Section 22713.


22754.  No provision imposing liability under this division,
including the provisions of subdivision (a) of Section 22751 and
subdivision (a) of Section 22752, shall apply to any act done or
omitted in good faith in conformity with any written general rule,
regulation, or specific ruling of the commissioner, notwithstanding
that after the act or omission has occurred, the written general
rule, regulation, or specific ruling is amended, rescinded, or
determined by judicial or other authority to be invalid for any
reason.


22755.  It is a violation of this division for a mortgage loan
originator to do any of the following:
   (a) Directly or indirectly employ any scheme, device, or artifice
to defraud or mislead borrowers or lenders or to defraud any person.
   (b) Engage in any unfair or deceptive practice toward any person.
   (c) Obtain property by fraud or misrepresentation.
   (d) Solicit or enter into a contract with a borrower that provides
in substance that the mortgage loan originator may earn a fee or
commission through best efforts to obtain a loan even though no loan
is actually obtained for the borrower.
   (e) 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.
   (f) Conduct any business covered by this division without holding
a valid license as required under this division, or assist or aide
and abet any person in the conduct of business under this division
without a valid license as required under this division.
   (g) Fail to make disclosures as required by this division and any
other applicable state or federal law, including regulations
thereunder.
   (h) Fail to comply with this division or rules or regulations
promulgated under this division, 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
division.
   (i) 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 residential mortgage loan, or
engage in bait and switch advertising.
   (j) 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.
   (k) 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.
   (l) Collect, charge, attempt to collect or charge, or use or
propose any agreement purporting to collect or charge any fee
prohibited by this division.
   (m) 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.
   (n) Fail to truthfully account for moneys belonging to a party of
a residential mortgage loan transaction.