Indiana Administrative Code › Title 750 - DEPARTMENT OF FINANCIAL INSTITUTIONS › Article 9 - MORTGAGE LENDERS AND ORIGINATORS › Rule 5 - Compliance; Enforcement › Section 5-5 - Prohibited acts

Current through July 10, 2024
Authority: IC
				  24-4.4-1-101
Affected: IC 24-4.4; IC 24-4.5
Sec. 5.
It is a violation of this article for a licensee 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
				licensee 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 article without holding a valid license as required
				under this article, or assist or aid and abet any person in the conduct of
				business under this article without a valid license as required under this
				article;
(7) fail to make
				disclosures as required by this article or regulation adopted under this
				article and any other applicable state or federal law or regulation;
(8) fail to comply with this article or
				guidance adopted under this article, or fail to comply with any other state or
				federal law, rule, or regulation, applicable to any business authorized or
				conducted under this article;
(9)
				make, in any manner, a false or deceptive statement or representation, with
				regard to the rates, points, or other financing terms or conditions for a
				mortgage transaction, 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 NMLSR or in
				connection with any investigation conducted by the director 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 mortgage transaction, 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 article;
(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 money
				belonging to a party to a mortgage transaction; or
(15) knowingly withhold, abstract, remove,
				mutilate, destroy, or secrete any books, records, computer records, or other
				information subject to examination under this article.