§2241. Prohibited acts and practices

Link to law: http://legislature.vermont.gov/statutes/section/08/073/02241
Published: 2015

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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

073

:
LICENSED LENDERS











 

§

2241. Prohibited acts and practices

It is a

violation of this chapter for a person or individual to:

(1) Directly or

indirectly employ any scheme, device, or artifice to defraud or mislead

borrowers or lenders or to defraud any person;

(2) Engage in any

unfair or deceptive practice toward any person;

(3) Obtain

property by fraud or misrepresentation;

(4) Solicit or

enter into a contract with a borrower that provides in substance that the

person or individual may earn a fee or commission through "best efforts"

to obtain a loan even though no loan is actually obtained for the borrower;

(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;

(6) Conduct any

business covered by this chapter without holding a valid license as required

under this chapter, or assist or aid and abet any person in the conduct of

business under this chapter without a valid license as required under this

chapter;

(7) Fail to make

disclosures as required by this chapter and any other applicable state or

federal law, including regulations thereunder;

(8) Fail to

comply with this chapter or rules adopted under this chapter, or fail to comply

with any orders or directives from the commissioner, or fail to comply with any

other state or federal law, including the rules thereunder, applicable to any

business authorized or conducted under this chapter;

(9) Make, in any

manner, any false or deceptive statement or representation, including with

regard to the rates, points, or other financing terms or conditions for a

mortgage loan, or engage in bait and switch advertising;

(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 conducted by the commissioner or another

governmental agency;

(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;

(12) Collect,

charge, attempt to collect or charge, or use or propose any agreement purporting

to collect or charge any fee prohibited by this chapter;

(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;

(14) Fail to

account truthfully for monies belonging to a party to a mortgage loan

transaction. (Added 2009, No. 29, § 1.)
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