| Chapter 186 |
| 2025 -- S 0936 Enacted 06/24/2025 |
| A N A C T |
| RELATING TO FINANCIAL INSTITUTIONS -- AN ACT ADOPTING THE FEDERAL SECURE AND FAIR ENFORCEMENT FOR MORTGAGE LICENSING ACT OF 2009 |
Introduced By: Senators Dimitri, Appollonio, and Thompson |
| Date Introduced: April 04, 2025 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Section 19-14.10-17 of the General Laws in Chapter 19-14.10 entitled "An |
| Act Adopting the Federal Secure and Fair Enforcement for Mortgage Licensing Act of 2009" is |
| hereby amended to read as follows: |
| 19-14.10-17. Prohibited acts and practices. |
| It is a violation of this chapter for a person or individual subject to this chapter to: |
| (1) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead |
| borrowers or lenders or to defraud any person; |
| (2) Engage in any unfair or deceptive practice toward any person; |
| (3) Obtain property by fraud or misrepresentation; |
| (4) Solicit or enter into a contract with a borrower that provides in substance that the person |
| or individual subject to this chapter may earn a fee or commission through “best efforts” to obtain |
| a loan even though no loan is actually obtained for the borrower; |
| (5) 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; |
| (6) Conduct any business covered by this chapter without holding a valid license as |
| required under this chapter, or assist or aid and abet any person in the conduct of business under |
| this chapter without a valid license as required under this chapter; |
| (7) Fail to make disclosures as required by this chapter and any other applicable state or |
| federal law including regulations thereunder; |
| (8) Fail to comply with this chapter or rules or regulations promulgated under this chapter, |
| 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 chapter; |
| (9) Make, in any manner, any 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; |
| (10) 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 director, or the director’s designee, or another governmental agency; |
| (11) 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; |
| (12) Collect, charge, attempt to collect or charge, or use or propose any agreement |
| purporting to collect or charge, any fee prohibited by this chapter; |
| (13) 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; or |
| (14) Fail to truthfully account for monies belonging to a party to a residential mortgage |
| loan transaction. ; or |
| (15) Act in the capacity of and compensated as both a real estate agent and mortgage loan |
| originator in the same transaction. |
| SECTION 2. This act shall take effect upon passage. |
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| LC001779 |
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