Guam § 36318 - Prohibited Acts and Practices.

§ 36318. Prohibited Acts and Practices.

It is a violation of this Act for a person or individual subject to this Act

to:

(a) directly or indirectly employ any scheme, device, or artifice to

defraud or mislead borrowers or lenders or to defraud any person;

(b) engage in any unfair or deceptive practice toward any person;

(c) obtain property by fraud or misrepresentation;

(d) solicit or enter into a contract with a borrower that provides in

substance that the person or individual subject to this Act may earn a

fee or commission through “best efforts” to obtain a loan even though

no loan is actually obtained for the borrower;

(e) 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;

(f) conduct any business covered by this Act without holding a

valid license as required under this Act, or assist, or aid and abet any

person in the conduct of business under this Act without a valid license

as required under this Act;

(g) fail to make disclosures as required by this Act and any other

applicable Guam or Federal law including regulations thereunder;

(h) fail to comply with this Act or rules or regulations

promulgated under this Act, or fail to comply with any other State or

Federal law, including the rules and regulations thereunder, applicable

to any business authorized or conducted under this Act;

(i) 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;

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(j) 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;

(k) 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;

(l) collect, charge, attempt to collect or charge or use or propose

any agreement purporting to collect or charge any fee prohibited by this

Act;

(m) 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; and

(n) fail to truthfully account for monies belonging to a party to a

residential mortgage loan transaction.