[§454F-17]  Prohibited practices.  It
shall be a violation of this chapter for a mortgage loan originator 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 any 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 rules or
regulations thereunder;



(8)  Fail to comply with this chapter or rules adopted
under this chapter, or fail to comply with any other state or federal law,
including the rules and regulations adopted thereunder, applicable to any
business authorized or conducted pursuant to this chapter;



(9)  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;



(10)  Negligently make any false statement or knowingly
and wilfully make any omission of material fact in connection with any
information or reports filed with a governmental agency or the Nationwide
Mortgage Licensing System or in connection with any investigation conducted by
the commissioner or another government 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 purpose of influencing the independent judgment of the
appraiser with respect to the value of a 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 moneys belonging
to a party to a residential mortgage loan transaction; or



(15)  Deliver a misleading or deceptive communication
or advertisement, whether written, electronic, or oral, when marketing or
soliciting a residential mortgage loan.  A communication or advertisement that
uses the name or trademark of a financial institution as defined in section
412:1-109 or its affiliates or subsidiaries, or infers that the communication
or advertisement is from, endorsed by, is related to, or is the responsibility
of the financial institution is a misleading or deceptive communication. 
Advertising that a specific interest rate, points, or financial terms are
available when the rates, points, or financial terms are not actually available
is a misleading or deceptive communication. [L Sp 2009, c 32, pt of §2]