TITLE 5


Banking


Other Businesses Under Jurisdiction of State Banking Department


CHAPTER 22. LICENSED LENDERS


Subchapter IV. Prohibitions and Penalties


§ 2239. Penalty for failure to give copy of obligation to borrower.


Every lender shall give to the borrower, on request, a correct copy of the obligation evidencing the loan, and on failure
or refusal on such request to furnish the borrower with such copy shall be fined, for each offense, not less than $20 nor
more than $100, or imprisoned for not more than 1 month, or both.


66 Del. Laws, c. 22, § 1.;


§ 2240. Penalty for making loans without license; exception.


(a) Loans as authorized by this chapter shall not be made unless a license of registration has first been obtained from the
State Bank Commissioner. Whoever violates this subsection shall be fined not less than $50 nor more than $200 for each offense,
or imprisoned not more than 3 months, or both.


(b) Subsection (a) of this section shall not apply to any person transacting the business of lending money in accordance with
the provisions of § 2202 of this title.


66 Del. Laws, c. 22, § 1; 68 Del. Laws, c. 105, § 25.;


§ 2241. Responsibility of agents.


For every violation of this chapter by any association, firm, partnership, trustee system or combination of persons not incorporated,
or by any corporation, any member of the association, firm, partnership, trustee system or combination of persons not incorporated,
and the president, secretary or treasurer, or any person acting as agent of the association, firm, partnership, trustee system
or combination of persons not incorporated, or corporation, may be proceeded against as a principal, and if found guilty of
violating this chapter, shall be punished as provided in this chapter.


66 Del. Laws, c. 22, § 1.;


§ 2242. Salary orders, warrants or assignments as security for loans, confessions of judgment, acceleration; penalties for
violations.


(a) No order, warrant or claim of any kind, from any employee upon his or her employer, for any salary or part thereof due
or to become due to such employee from such employer, shall be taken, accepted or agreed to be taken or accepted, as security
for money loaned or to be loaned.


(b) No instrument evidencing a loan under this chapter shall contain any acceleration clause under which any part, or all
of the unpaid balance, of the obligation not yet matured, may be declared due and payable because the holder deems himself
or herself to be insecure or any power of attorney to confess judgment or any other power of attorney.


(c) Whoever violates this section shall be fined not less than $100 nor more than $500, or imprisoned not more than 6 months,
or both.


66 Del. Laws, c. 22, § 1; 70 Del. Laws, c. 186, § 1.;


§ 2243. False or misleading advertising prohibited.


It shall be unlawful for any person to cause to be placed before the public in this State, directly or indirectly, any false
or misleading advertising matter pertaining to loans under this chapter or the availability thereof; provided, however, that
this section shall not apply to the owner, publisher, operator or employees of any publication or radio or television station
which disseminates such advertising matter without knowledge of the false or misleading character thereof.


66 Del. Laws, c. 22, § 1.;


§ 2244. Reverse mortgages.


(a) For purposes of this section, unless the context requires otherwise:


(1) "Independent housing counselor" means a housing counseling agency approved by the United States Department of Housing
and Urban Development, or any government agency or nonprofit organization that is not affiliated with either the reverse mortgage
lender or any other person receiving a fee from the transaction and provides mortgage loan counseling to the public of this
State regarding the advisability of entering into a reverse mortgage transaction.


(2) "Reverse mortgage loan" means a mortgage loan, as defined by § 2101(4) of this title, the proceeds of which are disbursed
to the mortgagor in 1 or more lump sums, or in equal or unequal installments, either directly by the lender or the lender's
agent, and which requires no repayment until a future time, upon the earliest occurrence of 1 or more events specified in
the reverse mortgage loan contract.


(b) A licensee shall not finalize a reverse mortgage loan until it has received a written certification from an independent
housing counselor attesting that the prospective borrower has received counseling on reverse mortgage loans that includes
the information specified in 12 U.S.C. § 1715z-20(f) and such other information as the Commissioner may designate by regulation.


76 Del. Laws, c. 335, § 2.;


§ 2245. Mortgage loan modification services; compensation.


(a) As used in this section, unless the context requires otherwise, "mortgage loan" has the meaning set forth in § 2101 of
this title.


(b) As used in this section, unless the context requires otherwise, "mortgage loan modification services" means services as
an intermediary between an individual and 1 or more mortgage loan creditors for the purpose of obtaining:


(1) Assent to the repayment of a mortgage loan on terms more favorable to the individual than the terms of the original mortgage
loan; or


(2) An arrangement to delay, prevent, remedy, eliminate or discharge any default on the terms of a mortgage loan, or the sale
of any property incident to a foreclosure or other judicial proceeding based on a mortgage loan.


(c) A licensee may not receive any compensation for mortgage loan modification services prior to the execution of a written
contract that describes in detail all such services that the licensee will perform and all compensation that the licensee
will receive for those services. Any compensation received by a licensee in advance of the completion of all such services
may not exceed $250.


(d) The total compensation that a licensee receives for mortgage loan modification services must be limited to an amount that
is customary and reasonable for those services in this State.


77 Del. Laws, c. 138, § 2.;