Section 47-30-115 - Prohibited actsReverse mortgage lenders are prohibited from engaging in any of the following acts in connection with the making, servicing, or collecting of a reverse mortgage loan:
(1) Misrepresenting material facts, making false promises, or engaging in a course of misrepresentation through agents or otherwise;(2) Failing to disburse funds in accordance with the terms of the reverse mortgage loan contract or other written commitment;(3) Improperly refusing to issue a release of a mortgage;(4) Engaging in any action or practice that is unfair or deceptive, or that operates a fraud on any person;(5) Contracting for or receiving shared appreciation, except that this subdivision (5) shall not apply to any Fannie Mae Reverse Mortgage Loan;(6) Closing a reverse mortgage loan without receiving certification from a counselor that the borrower has received counseling on the advisability of a reverse mortgage loan and the appropriate reverse mortgage loan for the borrower; or(7) Failing to comply with this chapter.Acts 1993, ch. 410, §16; 1997 , ch. 286, § 11.