2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter IV - Mortgage Loans Brokers (§§ 3054 — 3054i) › § 3054f - Prohibited practices

No licensee shall:
(a) Request, receive, or collect in advance the total or partial payment of any commission or fee for services to be rendered;
(b) falsely or deceitfully advertise, display, distribute, or radio broadcast or allow the advertisement, display, distribution or radio broadcasting of any information on the types or terms and conditions of loans and financing. If the types and terms and conditions of the loans and financing are advertised, the Commissioner may require that they be thoroughly and clearly detailed through an order to such effect;
(c) make promises to clients with the intent to persuade them to do business knowing that said promise cannot be kept;
(d) use misrepresentation in order to induce or persuade a person to conduct a business transaction;
(e) act as the broker of a borrower when he/she represents the money lender with whom he/she intends to process the loan. However, this shall not prevent the licensee from providing the service to the borrower without charging or accepting any payment as commission or any fee whatsoever for said service;
(f) unduly retain any amount of money or document pertaining to a transaction, or fail to inform a client of his/her rights or of any amount of money or document that is part of a transaction;
(g) induce a party into a transaction to terminate a contract and enter into a new one when the objective of such new contract is to benefit an institution or him/herself;
(h) commit misappropriation or embezzlement of the funds under his/her custody;
(i) falsify or cause any person to falsify documents that are part of a transaction;
(j) charge a double commission or service fee, one to the money lender and another to the borrower. In the event that a licensee receives compensation from a money lender to place the loans or financing of some of such lender’s whatsoever to the institution;
(k) deposit clients’ funds together with his/her own funds;
(l) allow or induce a client to sign blank loan applications or have the same available in a place other than the site of the authorized business so as to be subsequently completed by him/her or by the institution that makes the loan or financing;
(m) submit, publish, or make false reports or entries with the intent to deceit or defraud any person or agent authorized by the Commissioner to evaluate the business of the mortgage institution render,
(n) compensate third parties, either directly or indirectly, for case referral;
(o) use the term “bank” or “mortgage bank” in Spanish or English as the registered or trade name under which he/she does business;
(p) employ any scheme or artifice, either directly or indirectly, to defraud or deceit money lenders or borrowers, or to defraud any other person;
(q) request or enter into a contract with a borrower that sets forth essentially that the individual or persons subject to this chapter may charge fees or commissions for making their “best efforts” to obtain the loan, even if the borrower is not finally granted the loan;
(r) apply for, advertise, or enter into a contract with specific interest rates, types, or financing terms and conditions unless the same are available at the time of the application, announcement, or contract;
(s) conduct any business regulated by this subchapter without holding a valid license in accordance with the provisions herein or help or assist any person in the conduct of his/her business under this subchapter without a valid license under to the provisions herein;
(t) refuse to duly advise clients as required by this chapter and any other federal or Commonwealth law, including regulations to such effect;
(u) fail to comply with this subchapter or with the rules and regulations promulgated thereunder, or fail to comply with any other federal or Commonwealth law, including rules and regulations promulgated thereunder and applicable to any business conducted or authorized under this subchapter;
(v) knowingly make a false statement or intentionally omit any material fact regarding any information or report submitted to a government agency or to the nationwide mortgage licensing system and registry, or with respect to any investigation conducted by the Commissioner or any other government body;
(w) make any payment, threat, or promise, either directly or indirectly, to any person with the intent to influence their personal judgment regarding a residential mortgage loan, or make any payment, threat, or promise, either directly or indirectly, to any property appraiser to influence the personal judgment of such appraiser with respect to the value of the property;
(x) fail to provide clients with a substantially accurate itemization of the costs of the mortgage loans before and after the granting thereof.
History —Dec. 30, 2010, No. 247, § 4.7, eff. 120 days after Dec. 30, 2010.