16a-2-310.   Prohibited acts by persons licensed orregistered under act.(1) No person required to be licensed or registered underthis act shalldirectly or indirectly:

      (a)   Delay closing of a loan for the purpose of increasing interest, costs,fees or chargespayable by the borrower;

      (b)   misrepresent the material facts or make false promises intended toinfluence,persuade or induce a consumer to enter into a loan;

      (c)   misrepresent to or conceal from an applicant for a loan, a mortgagor or alender,material facts, terms or conditions of a transaction to which the personrequired to belicensed or registered is a party;

      (d)   engage in any transaction, practice or business conduct that is not ingood faith orthat operates a fraud upon any person in connection with the making of orpurchase or saleof any loan;

      (e)   receive compensation for making a residential mortgage loan where thelicensee orregistrant has otherwise acted as a real estate broker or agent in connectionwith the sale ofthe real estate which secures the mortgage transaction unless the personrequired to belicensed or registered has provided written disclosure to the person from whomcompensation is collected that the person is receiving compensation both formaking theloan and for real estate broker or agent services;

      (f)   engage in any fraudulent lending or underwriting practices;

      (g)   advertise, display, distribute, broadcast or televise, or cause or permitto beadvertised, displayed, distributed, broadcast or televised, in any manner, anyfalse,misleading or deceptive statement or representation with regard to rates, termsor conditionsfor a loan;

      (h)   record a mortgage if moneys are not available for immediate disbursalto themortgagor unless, before that recording, the person required to be licensed orregisteredinforms the mortgagor in writing of a definite date by which payment shall bemade andobtains the mortgagor's written permission for the delay;

      (i)   transfer, assign or attempt to transfer or assign, a license orregistration to any otherperson, or assist or aide and abet any person who does not hold a valid licenseorregistration under this act in engaging in the conduct of mortgage business;

      (j)   solicit or enter into a contract with a borrower that provides insubstance that theperson required to be licensed or registered may earn a fee or commissionthrough bestefforts to obtain a loan even though no loan is actually obtained for theborrower;

      (k)   solicit, advertise or enter into a contract for specific interest rates,points or otherfinancing terms unless the terms are actually available at the time ofsoliciting, advertising orcontracting;

      (l)   make any payment, threat or promise to any person for the purposes ofinfluencingthe independent judgment of the person in connection with a residentialmortgage loan, ormake any payment, threat or promise to any appraiser of a property, for thepurposes ofinfluencing the independent judgment of the appraiser with respect to the valueof the propertyor engage in any activity that would constitute a violation of K.S.A.58-2344, and amendments thereto; or

      (m)   fail to comply with the uniform consumer credit code, or rules andregulations promulgated thereunder, or fail to comply with any other state orfederal law,including the rules and regulations promulgated thereunder, applicable to anybusinessauthorized or conducted under the uniform consumer credit code.

      (2)   This section shall be part of and supplemental to the uniform consumercredit code.

      History:   L. 2009, ch. 29, § 3; July 1.