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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.)