5 Del. Admin. Code § 2401-22.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 2401-22.0 - Prohibited Acts And Practices

A person subject to the statute and this regulation shall not:

22.1 directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person;

22.2 engage in any unfair or deceptive practice toward any person;

22.3 obtain property by fraud or misrepresentation;

22.4 solicit or enter into a contract with a borrower that provides in substance that the person subject to the statute and this regulation may earn a fee or commission through 'best efforts' to obtain a loan even though no loan is actually obtained for the borrower;

22.5 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;

22.6 conduct any business covered by the statute and this regulation without holding a valid license as required under the statute and this regulation, or assist or aid and abet any person in the conduct of business under the statute and this regulation without a valid license as required under the statute and this regulation;

22.7 fail to make disclosures as required by the statute and this regulation and any other applicable federal or State law including regulations thereunder;

22.8 fail to comply with the statute and this regulation or rules or regulations promulgated under the statute, or fail to comply with any other federal or State law, including the rules and regulations thereunder, applicable to any business authorized or conducted under this the statute and this regulation;

22.9 make, in any manner, any false or deceptive statement or representation, or engage in 'bait and switch' advertising;

22.10 negligently make any false statement or knowingly and willfully make any omission of material fact in connection with any information or reports filed with a governmental agency or the Nationwide Mortgage Licensing System and Registry or in connection with any investigation or examination conducted by the Commissioner or another governmental agency;

22.11 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 purposes of influencing the independent judgment of the appraiser with respect to the value of the property;

22.12 collect, charge, attempt to collect or charge or use or propose any agreement purporting to collect or charge any fee prohibited by the statute and this regulation;

22.13 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; or

22.14 fail to truthfully account for monies belonging to a party to a residential mortgage loan transaction.

5 Del. Admin. Code § 2401-22.0