2006 Kansas Code - 9-2212

      9-2212.   Prohibited acts for persons licensed or registered under act. No person required to be licensed or registered under this act shall:

      (a)   Pay compensation to, contract with or employ in any manner, any person engaged in mortgage business who is not properly licensed or registered, unless such person meets the requirements of K.S.A. 9-2202, and amendments thereto;

      (b)   without the prior written approval of the commissioner employ any person who has:

      (1)   Had a license or registration denied, revoked, suspended or refused renewal; or

      (2)   been convicted of any crime involving fraud, dishonesty or deceit;

      (c)   delay closing of a mortgage loan for the purpose of increasing interest, costs, fees or charges payable by the borrower;

      (d)   misrepresent the material facts or make false promises intended to influence, persuade or induce an applicant for a mortgage loan or mortgagee to take a mortgage loan or cause or contribute to misrepresentation by any person acting on the licensee's behalf;

      (e)   misrepresent to or conceal from an applicant for a mortgage loan or mortgagor, material facts, terms or conditions of a transaction to which the licensee or registrant is a party;

      (f)   engage in any transaction, practice or business conduct that is not in good faith, or that operates a fraud upon any person in connection with the making of or purchase or sale of any mortgage loan;

      (g)   receive compensation for rendering mortgage business services where the licensee or registrant has otherwise acted as a real estate broker or agent in connection with the sale of the real estate which secures the mortgage transaction unless the licensee or registrant has provided written disclosure to the person from whom compensation is collected that the licensee or registrant is receiving compensation both for mortgage business services and for real estate broker or agent services;

      (h)   engage in any fraudulent residential mortgage brokerage or underwriting practices;

      (i)   advertise, display, distribute, broadcast or televise, or cause or permit to be advertised, displayed, distributed, broadcast or televised, in any manner, any false, misleading or deceptive statement or representation with regard to rates, terms or conditions for a mortgage loan;

      (j)   record a mortgage if moneys are not available for the immediate disbursal to the mortgagor unless, before that recording, the licensee informs the mortgagor in writing of a definite date by which payment shall be made and obtains the mortgagor's written permission for the delay; or

      (k)   transfer, assign or attempt to transfer or assign, a license or registration to any other person.

      History:   L. 1999, ch. 45, § 11; L. 2000, ch. 17, § 5; L. 2001, ch. 88, § 12; Nov. 1.