9-2212.Prohibited acts for persons licensed or
registered under act.
No person required to be licensed or registered under this act shall
directly or indirectly:
(a) Pay
compensation
to, contract with or
employ in any manner, any person
engaged in mortgage business who
is not properly
licensed or registered, unless such person meets the requirements of K.S.A.
9-2202, and amendments thereto;
(b) without the prior
written
approval of the commissioner employ any person who
has:
(1) Had a license or registration denied,
revoked, suspended or refused
renewal; or
(2) been convicted of any crime involving fraud, dishonesty or
deceit;
(c) delay closing of a mortgage loan for the purpose of
increasing interest, costs, fees or charges payable by the borrower;
(d) misrepresent the material facts or make false promises
intended to influence, persuade or induce an applicant for a mortgage loan or
mortgagee to take a mortgage loan or cause or contribute to misrepresentation
by any person acting on behalf of the person required
to be licensed or registered;
(e) misrepresent to or conceal from an applicant for a mortgage
loan a mortgagor or a lender, material facts, terms or
conditions of a transaction to
which the person required to be licensed or
registered is a party;
(f) engage in any transaction, practice or business conduct
that is not in good faith, or that operates a fraud upon any person in
connection with the making of or purchase or sale of any mortgage loan;
(g) receive compensation for rendering mortgage business
services where the licensee or registrant has otherwise acted as a real estate
broker or agent in connection with the sale of the real estate which secures
the mortgage transaction unless the the person
required to be licensed or registered has provided
written disclosure to the person from whom compensation is collected that the
person is receiving compensation both for
mortgage business
services and for real estate broker or agent services;
(h) engage in any fraudulent residential mortgage brokerage or
underwriting practices;
(i) advertise, display, distribute, broadcast or televise, or
cause or permit to be advertised, displayed, distributed, broadcast or
televised, in any manner, any false, misleading or deceptive statement or
representation with regard to rates, terms or conditions for a mortgage
loan;
(j) record a mortgage if moneys are not available for the
immediate disbursal to the mortgagor unless, before that recording, the
person required to be licensed or registered informs the
mortgagor in writing of a definite date by which payment
shall be made and obtains the mortgagor's written permission for the delay;
(k) transfer, assign or attempt to transfer or assign, a
license or registration to any other person, or assist or aide and
abet any person who does not hold a valid license or
registration under this
act in engaging in the conduct of mortgage business;
(l) solicit or enter into a contract with a borrower that provides in
substance that the person
required to be licensed or registered may earn a fee or commission through
best efforts to
obtain 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 other
financing terms unless the terms are actually available at the time of
soliciting, advertising or
contracting;
(n) make any payment, threat or promise, 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, to any appraiser of a property, for the
purposes of influencing the
independent judgment of the appraiser with respect to the value of the property
or engage in any
activity that would constitute a violation of K.S.A. 58-2344, and amendments
thereto; or
(o) fail to comply with this act or rules and regulations promulgated under
this act or
fail to comply with any other state or federal law, including the rules and
regulations 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.
9-2212.Prohibited acts for persons licensed or
registered under act.
No person required to be licensed or registered under this act shall
directly or indirectly:
(a) Pay
compensation
to, contract with or
employ in any manner, any person
engaged in mortgage business who
is not properly
licensed or registered, unless such person meets the requirements of K.S.A.
9-2202, and amendments thereto;
(b) without the prior
written
approval of the commissioner employ any person who
has:
(1) Had a license or registration denied,
revoked, suspended or refused
renewal; or
(2) been convicted of any crime involving fraud, dishonesty or
deceit;
(c) delay closing of a mortgage loan for the purpose of
increasing interest, costs, fees or charges payable by the borrower;
(d) misrepresent the material facts or make false promises
intended to influence, persuade or induce an applicant for a mortgage loan or
mortgagee to take a mortgage loan or cause or contribute to misrepresentation
by any person acting on behalf of the person required
to be licensed or registered;
(e) misrepresent to or conceal from an applicant for a mortgage
loan a mortgagor or a lender, material facts, terms or
conditions of a transaction to
which the person required to be licensed or
registered is a party;
(f) engage in any transaction, practice or business conduct
that is not in good faith, or that operates a fraud upon any person in
connection with the making of or purchase or sale of any mortgage loan;
(g) receive compensation for rendering mortgage business
services where the licensee or registrant has otherwise acted as a real estate
broker or agent in connection with the sale of the real estate which secures
the mortgage transaction unless the the person
required to be licensed or registered has provided
written disclosure to the person from whom compensation is collected that the
person is receiving compensation both for
mortgage business
services and for real estate broker or agent services;
(h) engage in any fraudulent residential mortgage brokerage or
underwriting practices;
(i) advertise, display, distribute, broadcast or televise, or
cause or permit to be advertised, displayed, distributed, broadcast or
televised, in any manner, any false, misleading or deceptive statement or
representation with regard to rates, terms or conditions for a mortgage
loan;
(j) record a mortgage if moneys are not available for the
immediate disbursal to the mortgagor unless, before that recording, the
person required to be licensed or registered informs the
mortgagor in writing of a definite date by which payment
shall be made and obtains the mortgagor's written permission for the delay;
(k) transfer, assign or attempt to transfer or assign, a
license or registration to any other person, or assist or aide and
abet any person who does not hold a valid license or
registration under this
act in engaging in the conduct of mortgage business;
(l) solicit or enter into a contract with a borrower that provides in
substance that the person
required to be licensed or registered may earn a fee or commission through
best efforts to
obtain 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 other
financing terms unless the terms are actually available at the time of
soliciting, advertising or
contracting;
(n) make any payment, threat or promise, 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, to any appraiser of a property, for the
purposes of influencing the
independent judgment of the appraiser with respect to the value of the property
or engage in any
activity that would constitute a violation of K.S.A. 58-2344, and amendments
thereto; or
(o) fail to comply with this act or rules and regulations promulgated under
this act or
fail to comply with any other state or federal law, including the rules and
regulations 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.
9-2212.Prohibited acts for persons licensed or
registered under act.
No person required to be licensed or registered under this act shall
directly or indirectly:
(a) Pay
compensation
to, contract with or
employ in any manner, any person
engaged in mortgage business who
is not properly
licensed or registered, unless such person meets the requirements of K.S.A.
9-2202, and amendments thereto;
(b) without the prior
written
approval of the commissioner employ any person who
has:
(1) Had a license or registration denied,
revoked, suspended or refused
renewal; or
(2) been convicted of any crime involving fraud, dishonesty or
deceit;
(c) delay closing of a mortgage loan for the purpose of
increasing interest, costs, fees or charges payable by the borrower;
(d) misrepresent the material facts or make false promises
intended to influence, persuade or induce an applicant for a mortgage loan or
mortgagee to take a mortgage loan or cause or contribute to misrepresentation
by any person acting on behalf of the person required
to be licensed or registered;
(e) misrepresent to or conceal from an applicant for a mortgage
loan a mortgagor or a lender, material facts, terms or
conditions of a transaction to
which the person required to be licensed or
registered is a party;
(f) engage in any transaction, practice or business conduct
that is not in good faith, or that operates a fraud upon any person in
connection with the making of or purchase or sale of any mortgage loan;
(g) receive compensation for rendering mortgage business
services where the licensee or registrant has otherwise acted as a real estate
broker or agent in connection with the sale of the real estate which secures
the mortgage transaction unless the the person
required to be licensed or registered has provided
written disclosure to the person from whom compensation is collected that the
person is receiving compensation both for
mortgage business
services and for real estate broker or agent services;
(h) engage in any fraudulent residential mortgage brokerage or
underwriting practices;
(i) advertise, display, distribute, broadcast or televise, or
cause or permit to be advertised, displayed, distributed, broadcast or
televised, in any manner, any false, misleading or deceptive statement or
representation with regard to rates, terms or conditions for a mortgage
loan;
(j) record a mortgage if moneys are not available for the
immediate disbursal to the mortgagor unless, before that recording, the
person required to be licensed or registered informs the
mortgagor in writing of a definite date by which payment
shall be made and obtains the mortgagor's written permission for the delay;
(k) transfer, assign or attempt to transfer or assign, a
license or registration to any other person, or assist or aide and
abet any person who does not hold a valid license or
registration under this
act in engaging in the conduct of mortgage business;
(l) solicit or enter into a contract with a borrower that provides in
substance that the person
required to be licensed or registered may earn a fee or commission through
best efforts to
obtain 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 other
financing terms unless the terms are actually available at the time of
soliciting, advertising or
contracting;
(n) make any payment, threat or promise, 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, to any appraiser of a property, for the
purposes of influencing the
independent judgment of the appraiser with respect to the value of the property
or engage in any
activity that would constitute a violation of K.S.A. 58-2344, and amendments
thereto; or
(o) fail to comply with this act or rules and regulations promulgated under
this act or
fail to comply with any other state or federal law, including the rules and
regulations 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.