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

(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).