§ 19-14.10-17 - Prohibited acts and practices.
SECTION 19-14.10-17
§ 19-14.10-17 Prohibited acts andpractices. – It is a violation of this chapter for a person or individual subject to thischapter to:
(1) Directly or indirectly employ any scheme, device, orartifice to defraud or mislead borrowers or lenders or to defraud any person;
(2) Engage in any unfair or deceptive practice toward anyperson;
(3) Obtain property by fraud or misrepresentation;
(4) Solicit or enter into a contract with a borrower thatprovides in substance that the person or individual subject to this chapter mayearn a fee or commission through "best efforts" to obtain a loan even though noloan is actually obtained for the borrower;
(5) Solicit, advertise, or enter into a contract for specificinterest rates, points, or other financing terms unless the terms are actuallyavailable at the time of soliciting, advertising, or contracting;
(6) Conduct any business covered by this chapter withoutholding a valid license as required under this chapter, or assist or aide andabet any person in the conduct of business under this chapter without a validlicense as required under this chapter;
(7) Fail to make disclosures as required by this chapter andany other applicable state or federal law including regulations thereunder;
(8) Fail to comply with this chapter or rules or regulationspromulgated under this chapter, or fail to comply with any other state orfederal law, including the rules and regulations thereunder, applicable to anybusiness authorized or conducted under this chapter;
(9) Make, in any manner, any false or deceptive statement orrepresentation with regard to the rates, points, or other financing terms orconditions for a residential mortgage loan, or engage in bait and switchadvertising;
(10) Negligently make any false statement or knowingly andwillfully make any omission of material fact in connection with any informationor reports filed with a governmental agency or the nationwide mortgagelicensing system and registry or in connection with any investigation conductedby the director or the director's designee or another governmental agency;
(11) Make any payment, threat or promise, directly orindirectly, to any person for the purposes of influencing the independentjudgment of the person in connection with a residential mortgage loan, or makeany payment threat or promise, directly or indirectly, to any appraiser of aproperty, for the purposes of influencing the independent judgment of theappraiser with respect to the value of the property;
(12) Collect, charge, attempt to collect or charge or use orpropose any agreement purporting to collect or charge any fee prohibited bythis chapter;
(13) Cause or require a borrower to obtain property insurancecoverage in an amount that exceeds the replacement cost of the improvements asestablished by the property insurer.
(14) Fail to truthfully account for monies belonging to aparty to a residential mortgage loan transaction.