Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 41.00 - The Licensing Of Mortgage Loan Originators › Section 41.10 - Prohibited Acts and Practices

Current through Register 1525, July 5, 2024
(1) It is a
			 prohibited act or practice for a Mortgage Loan Originator to engage in conduct
			 prohibited under
			 209 CMR
			 42.12A.
(2) It is a prohibited act or practice for a
			 Mortgage Loan Originator to engage in mortgage loan origination activities
			 after receiving notification of the denial of his/her Mortgage Loan Originator
			 license application or at any time that the license is expired, cancelled,
			 suspended, revoked, or in an inactive status.
(3) It is a prohibited act or practice for a
			 Mortgage Loan Originator to misrepresent his/her license status and
			 type.
(4) It is a prohibited act or
			 practice for a Mortgage Loan Originator to download or remove borrowers' or
			 mortgage loan applicants' loan files or other information from the premises or
			 the computer systems of the Employing Entity, unless the Mortgage Loan
			 Originator has obtained the written permission of the Employing
			 Entity.
(5) It is a prohibited act
			 or practice for a Mortgage Loan Originator to allow any other person or entity
			 to utilize the Mortgage Loan Originator's Mortgage Loan Originator license
			 number to engage in mortgage loan origination activities.
(6) It is a prohibited act or practice for a
			 Mortgage Loan Originator to simultaneously work for, or be associated with,
			 more than one Employing Entity.
(7)
			 It is a prohibited act or practice for a Mortgage Loan Originator to conduct
			 business with or to assist, aid or abet a person in the conduct of business who
			 should be licensed as a Mortgage Loan Originator under M.G.L. c. 255F or a
			 mortgage lender or mortgage broker under M.G.L. c. 255E, and which the Mortgage
			 Loan Originator knows or should know is an unlicensed Mortgage Loan Originator,
			 mortgage broker or mortgage lender.
(8) It is a prohibited act or practice for a
			 Mortgage Loan Originator to directly or indirectly employ any scheme, device,
			 or artifice to defraud or mislead borrowers or lenders or to defraud any
			 person.
(9) It is a prohibited act
			 or practice for a Mortgage Loan Originator to engage in any unfair or deceptive
			 practice toward any person.
(10) It
			 is a prohibited act or practice for a Mortgage Loan Originator to obtain
			 property by fraud or misrepresentation.
(11) It is a prohibited act or practice for a
			 Mortgage Loan Originator to solicit or enter into a contract with a borrower
			 that provides in substance that the Mortgage Loan Originator or the Employing
			 Entity may earn a fee or commission through best efforts to obtain a loan even
			 though no loan is actually obtained for the borrower.
(12) It is a prohibited act or practice for a
			 Mortgage Loan Originator to 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;
(13) It is a
			 prohibited act or practice for a Mortgage Loan Originator to fail to make
			 disclosures as required by M.G.L. c. 255F and
			 209 CMR 41.00.
(14) It is a prohibited act or practice for a
			 Mortgage Loan Originator to 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 residential mortgage loan, or engage
			 in bait and switch advertising.
(15) It is a prohibited act or practice for a
			 Mortgage Loan Originator to 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 NMLS or in connection with any
			 investigation conducted by the Commissioner or another governmental
			 agency.
(16) It is a prohibited act
			 or practice for a Mortgage Loan Originator to 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.
(17) It is a prohibited act or practice for a
			 Mortgage Loan Originator to collect, charge, attempt to collect or charge or
			 use or propose any agreement purporting to collect or charge any fee prohibited
			 by M.G.L. c. 255F.
(18) It is a
			 prohibited act or practice for a Mortgage Loan Originator to 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.
(19) It is a prohibited
			 act or practice for a Mortgage Loan Originator to fail to truthfully account
			 for monies belonging to a party to a residential mortgage loan
			 transaction.
(20) It is a
			 prohibited act or practice for a Mortgage Loan Originator to violate any
			 written agreement entered between the Mortgage Loan Originator and the
			 Commissioner.
(21) It is a
			 prohibited act or practice for a Mortgage Loan Originator to fail to maintain
			 accurate and up-to-date information in his or her NMLS license
			 record.
(22) A violation of 209 CMR
			 41.10 shall constitute grounds for the issuance of a cease and desist order or
			 for license suspension, revocation, or refusal to renew under M.G.L. c. 255F,
			 § 11(a); shall constitute grounds for a civil assessment under M.G.L. c.
			 255F, § 11(b); and shall constitute grounds for a Prohibition Notice under
			 M.G.L. c. 255F, § 11(d).