Section 286.8-220 - Prohibited acts(1) No person shall make or cause to be made, in any document filed with the commissioner, a governmental agency, the Nationwide Multistate Licensing System and Registry, or in any proceeding under this subtitle, any statement that is, at the time and in light of the circumstances under which it is made, false or misleading in any material respect, including an omission of a material fact.(2) No person shall, in connection with a transaction involving the mortgage lending process, or in connection with the operation of a mortgage loan business or the management or servicing of mortgage loans, directly or indirectly:(a) Employ a device, scheme, or artifice to defraud;(b) Engage in any act, practice, or course of business that operates or would operate as a fraud or deceit upon any person;(c) Fail to disburse funds in accordance with a loan commitment;(d) Delay closing of any mortgage loan for the purpose of increasing interest, costs, fees, or charges payable by the borrower;(e) Upon receipt of a customer's written request, delay beyond five (5) business days the issuance of a written loan payoff amount or to delay beyond ten (10) business days the issuance of a payment history;(f) Charge a fee for the issuance of an initial written loan payoff amount or payment history for each calendar quarter as set out in paragraph (e) of this subsection;(g) Obtain property by fraud or misrepresentation;(h) Fail to make disclosures as required by this subtitle or any other applicable state or federal law, including regulations thereunder; or(i) Fail to comply with state or federal laws, including the rules and regulations thereunder, that are applicable to transacting business in Kentucky.(3) Unless exempted by KRS 286.8-020(1), no person shall transact business in Kentucky unless it complies with the provisions of this subtitle.(4) No person shall use prescreened trigger lead information derived from a consumer report to solicit a consumer who has applied for a mortgage loan with another mortgage loan company or mortgage loan broker, when the person: (a) Fails to state in the initial solicitation that the person is not affiliated with the mortgage loan company or mortgage loan broker with which the consumer initially applied;(b) Fails in the initial solicitation to conform to state and federal law relating to prescreened solicitations using consumer reports, including the requirement to make a firm offer of credit to the consumer;(c) Uses information regarding consumers who have opted out of the prescreened offers of credit or who have placed their contact information on the state or federal do-not-call registry; or(d) Solicits a consumer with an offer of certain rates, terms, and costs with the knowledge that the rates, terms, or costs will be subsequently changed to the detriment of the consumer.Amended by 2022 Ky. Acts ch. 125,§ 10, eff. 7/13/2022.Effective:7/15/2010
Amended 2010, Ky. Acts ch. 24, sec. 787, effective7/15/2010. -- Amended 2009, Ky. Acts ch. 104, sec. 14, effective 6/25/2009. -- Amended 2008, Ky. Acts ch. 175, sec. 15, effective 4/24/2008. -- Amended 2006, Ky. Acts ch. 218, sec. 6, effective 7/12/2006. -- Amended 2001, Ky. Acts ch. 98, sec. 3, effective 6/21/2001. -- Amended 1998, Ky. Acts ch. 197, sec. 15, effective 7/15/1998. --Amended 1994 Ky. Acts ch. 377, sec. 3, effective 7/15/1994. -- Amended 1986 Ky. Acts ch. 461, sec. 19, effective 7/15/1986. -- Created 1980 Ky. Acts ch. 365, sec. 23, effective 7/15/1980.