Prohibited Acts and Practices

It is a violation of this Act for a person or individual subject to this Act to:

(a)directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person;

(b)engage in any unfair or deceptive practice toward any person;

(c)obtain property by fraud or misrepresentation;

(d)solicit or enter into a contract with a borrower that provides in substance that the person or individual subject to this Act may earn a fee or commission through “best efforts” to obtain a loan even though no loan is actually obtained for the borrower;

(e)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;

(f)conduct any business covered by this Act without holding a valid license as required under this Act, or assist, or aid and abet any person in the conduct of business under this Act without a valid license as required under this Act;

(g)fail to make disclosures as required by this Act and any other applicable Guam or Federal law including regulations thereunder;

(h)fail to comply with this Act or rules or regulations promulgated under this Act, 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 Act;

(i)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; COL4122017 CH. 36 MORTGAGES

(j)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 Commissioner or another governmental agency;

(k)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;

(l)collect, charge, attempt to collect or charge or use or propose any agreement purporting to collect or charge any fee prohibited by this Act;

(m)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; and

(n)fail to truthfully account for monies belonging to a party to a residential mortgage loan transaction.