Idaho Code 26-31-211 – Prohibited Practices of Mortgage Brokers and Mortgage Lenders
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No mortgage broker or mortgage lender licensee under this part or person required under this part to have such license shall:
(1) Obtain any exclusive dealing or exclusive agency agreement from any borrower;
Terms Used In Idaho Code 26-31-211
- Borrower: means the person who has applied for a residential mortgage loan from a licensee, or person required to be licensed, under this chapter, or on whose behalf the activities set forth in section 26-31-201(3), (5) or (7) or 26-31-303(7), Idaho Code, are conducted. See Idaho Code 26-31-102
- Department: means the department of finance of the state of Idaho. See Idaho Code 26-31-102
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Licensee: means a person licensed pursuant to this chapter to engage in the activities regulated by this chapter. See Idaho Code 26-31-102
- Loan modification: means an adjustment or compromise of an existing residential mortgage loan. See Idaho Code 26-31-201
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage lender: means any nonexempt organization that makes residential mortgage loans to borrowers and performs the activities described in subsection (7) of this section. See Idaho Code 26-31-201
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Person: means a natural person, corporation, company, limited liability company, partnership or association. See Idaho Code 26-31-102
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Residential mortgage loan: means any loan that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling, as defined in section 103(w) of the truth in lending act, located in Idaho, or on residential real estate. See Idaho Code 26-31-102
(2) Delay closing of any residential mortgage loan for the purpose of increasing interest, costs, fees or charges payable by the borrower;
(3) Accept any fees at closing that were not previously disclosed fully to the borrower;
(4) Obtain any agreement or instrument in which blanks are left to be filled in after signing by a borrower;
(5) Engage in any misrepresentation or omission of a material fact in connection with a residential mortgage loan;
(6) Make payment, whether directly or indirectly, of any kind to any in-house or fee appraiser for the purpose of influencing the independent judgment of the appraiser with respect to the value of any residential real property that is to be covered by a residential mortgage loan;
(7) Make any false promise likely to influence or persuade, or pursue a course of misrepresentations and false promises through mortgage loan originators or other agents or through advertising or otherwise;
(8) Misrepresent, circumvent or conceal, through whatever subterfuge or device, any of the material terms of a residential mortgage loan transaction;
(9) Enter into any agreement, with or without the payment of a fee, to fix in advance a particular interest rate or other term in a residential mortgage loan unless written confirmation of the agreement is delivered to the borrower as required by rule promulgated pursuant to this chapter and pertinent to this part;
(10) Engage in mortgage loan origination activity through any person who at the time of such mortgage loan origination activity does not hold a mortgage loan originator license issued by the department or temporary authority pursuant to this chapter; or
(11) Receive a fee for engaging in loan modification activities except pursuant to a written agreement between the person subject to this part and a person seeking a loan modification. The written agreement must specify the amount of the fee that will be charged to the person seeking a loan modification, specify the terms of the loan for which modification will be sought and disclose the expected impact of the loan modification on the monthly payment and length of the loan.