Tennessee § 45-13-401 - Prohibited acts and practices.

§ 45-13-401. Prohibited acts and practices.

It is a violation of this chapter for any person subject to this chapter to: Directly or indirectly employ any scheme, device or artifice to defraud or mislead borrowers or lenders or to defraud any person; Solicit or enter into a contract with a borrower that provides in substance that the person subject to this chapter may earn a fee or commission through best efforts to obtain a residential mortgage loan even though no loan is actually obtained for the borrower; 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; Conduct any business covered by this chapter without holding a valid license as required under this chapter or assist or aide and abet any person in the conduct of business under this chapter without a valid license as required under this chapter; Fail to comply with this chapter or any rules or regulations promulgated under this chapter; Contract for or collect interest on a residential mortgage loan, or both, at a rate in violation of the maximum effective rate of interest applicable to the contract, as established pursuant to title 47, chapter 14 or 15, as applicable, unless otherwise authorized by law to do so; Fail to comply with any other state or federal law, or rules or regulations promulgated under any state or federal law, applicable to any business authorized or conducted under this chapter, including, but not limited to, the Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), the Truth In Lending Act (15 U.S.C. § 1601 et seq.), and the Equal Credit Opportunity Act (15 U.S.C. §§ 1691-1691f); Make, in any manner, any false or deceptive statement or representation to a borrower or potential borrower, including, but not limited to, a false or deceptive statement or representation with regard to the rates, points or other financing terms or conditions for a residential mortgage loan, or engage in bait and switch advertising; Make any false statement or material omission in connection with any information reported to or filed with the commissioner or with the Nationwide Mortgage Licensing System and Registry or in connection with any examination or investigation conducted by the commissioner; Fail to accurately account for moneys belonging to a party to a residential mortgage loan transaction; Fail to disburse funds in accordance with a written agreement; Obtain any agreement or instrument in which blanks are left to be filled in after execution; Delay closing of any residential mortgage loan for the purpose of increasing interest, costs, fees or charges payable by the borrower; Intimidate a real estate appraiser or influence an appraiser's report relating to market conditions or determination of value; Refuse to permit the commissioner to make an examination authorized under this chapter; or Assign or attempt to assign any license issued under this chapter. Acts 2009, ch. 499, § 8. Compiler's Notes. Former chapter 13, §§ 45-13-101 —45-13-129 (Acts 1988, ch. 846, §§ 1-18; 1990, ch. 788, §§ 1-3; 1996, ch. 629, § 1; 2001, ch. 165, §§ 10-20; 2003, ch. 141, §§ 1-3; 2004, ch. 747, §§ 1-10; 2005, ch. 463, § 1; 2008, ch. 821, §§ 1-3, 5-9), concerning the Tennessee Residential Lending, Brokerage and Servicing Act of 1988, was repealed and replaced by the Tennessee Residential Lending, Brokerage and Servicing Act by Acts 2009, ch. 499, § 8, effective July 31, 2009. See this chapter for current provisions. Attorney General Opinions. An individual investment property owner who provides a purchaser with financing that qualifies as a “residential mortgage loan” must be licensed under T.C.A. §§ 45-13-201 , et seq., unless a statutory exception applies. Additionally, such an individual who provides such financing for compensation or gain or in the expectation thereof must be licensed under T.C.A. §§ 45-13-301 , et seq., unless a statutory exception applies. OAG 10-93, 2010 Tenn. AG LEXIS 99 (8/24/10).