9-2212.   Prohibited acts for persons licensed orregistered under act.No person required to be licensed or registered under this act shalldirectly or indirectly:

      (a)   Paycompensationto, contract with oremploy in any manner, any personengaged in mortgage business whois not properlylicensed or registered, unless such person meets the requirements of K.S.A.9-2202, and amendments thereto;

      (b)   without the priorwrittenapproval of the commissioner employ any person whohas:

      (1)   Had a license or registration denied,revoked, suspended or refusedrenewal; or

      (2)   been convicted of any crime involving fraud, dishonesty ordeceit;

      (c)   delay closing of a mortgage loan for the purpose ofincreasing interest, costs, fees or charges payable by the borrower;

      (d)   misrepresent the material facts or make false promisesintended to influence, persuade or induce an applicant for a mortgage loan ormortgagee to take a mortgage loan or cause or contribute to misrepresentationby any person acting on behalf of the person requiredto be licensed or registered;

      (e)   misrepresent to or conceal from an applicant for a mortgageloan a mortgagor or a lender, material facts, terms orconditions of a transaction towhich the person required to be licensed orregistered is a party;

      (f)   engage in any transaction, practice or business conductthat is not in good faith, or that operates a fraud upon any person inconnection with the making of or purchase or sale of any mortgage loan;

      (g)   receive compensation for rendering mortgage businessservices where the licensee or registrant has otherwise acted as a real estatebroker or agent in connection with the sale of the real estate which securesthe mortgage transaction unless the the personrequired to be licensed or registered has providedwritten disclosure to the person from whom compensation is collected that theperson is receiving compensation both formortgage businessservices and for real estate broker or agent services;

      (h)   engage in any fraudulent residential mortgage brokerage orunderwriting practices;

      (i)   advertise, display, distribute, broadcast or televise, orcause or permit to be advertised, displayed, distributed, broadcast ortelevised, in any manner, any false, misleading or deceptive statement orrepresentation with regard to rates, terms or conditions for a mortgageloan;

      (j)   record a mortgage if moneys are not available for theimmediate disbursal to the mortgagor unless, before that recording, theperson required to be licensed or registered informs themortgagor in writing of a definite date by which paymentshall be made and obtains the mortgagor's written permission for the delay;

      (k)   transfer, assign or attempt to transfer or assign, alicense or registration to any other person, or assist or aide andabet any person who does not hold a valid license orregistration under thisact in engaging in the conduct of mortgage business;

      (l)   solicit or enter into a contract with a borrower that provides insubstance that the personrequired to be licensed or registered may earn a fee or commission throughbest efforts toobtain a loan even though no loan is actually obtained for the borrower;

      (m)   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;

      (n)   make any payment, threat or promise, to any person for the purposes ofinfluencingthe independent judgment of the person in connection with a residentialmortgage loan or makeany payment, threat or promise, to any appraiser of a property, for thepurposes of influencing theindependent judgment of the appraiser with respect to the value of the propertyor engage in anyactivity that would constitute a violation of K.S.A. 58-2344, and amendmentsthereto; or

      (o)   fail to comply with this act or rules and regulations promulgated underthis act orfail to comply with any other state or federal law, including the rules andregulations thereunder,applicable to any business authorized or conducted under this act.

      History:   L. 1999, ch. 45, § 11;L. 2000, ch. 17, § 5;L. 2001, ch. 88, § 12;L. 2009, ch. 29, § 11; July 1.