§ 595-a. Regulation of mortgage brokers, mortgage bankers and exempt\norganizations. 1. Establishment of grounds to impose a fine or penalty.\nIn addition to such other rules, regulations and policies as the\nsuperintendent of financial services may prescribe to effectuate the\npurposes of this article, the superintendent of financial services shall\npromulgate regulations and policies governing the establishment of\ngrounds to impose a fine or penalty with respect to the activities of a\nmortgage banker, mortgage broker or exempt organization. Such regulation\nshall encompass the following:\n (a) The misrepresentation of material facts or the making of false\npromises likely to influence, persuade, or induce an applicant for a\nmortgage loan or mortgagor to take a mortgage loan, or pursuing a course\nof misrepresentation or false promises through agents or otherwise;\n (b) The misrepresentation, or concealment of any material factors,\nterms or conditions of a transaction to which he is a party, including\nthe receipt of payment from a third party, pertinent to an applicant for\na mortgage loan or a mortgagor;\n (c) The failure to disburse funds in accordance with a written\ncommitment or agreement to make a mortgage loan;\n (d) The failure to account for or deliver to any person any personal\nproperty obtained in connection with a mortgage loan such as money,\nfund, deposit, check, draft, mortgage, or other document, or thing of\nvalue, which has come into his hands, and which is not his property, or\nwhich he is not in law or equity entitled to retain;\n (e) The improper refusal to issue a satisfaction of mortgage;\n (f) Engaging in any transaction, practice, or course of business which\noperates a fraud upon any person in connection with the purchase or sale\nof any mortgage loan;\n (g) Violation of section six-j of this chapter; and\n (h) Making a mortgage loan, or indirectly or directly providing for\nthe making of a mortgage loan, to an equity purchaser, as defined in\nsection two hundred sixty-five-a of the real property law, if the\nmortgage banker, mortgage broker or exempt organization had knowledge\nthat the equity purchaser was not complying with the provisions of\nsection two hundred sixty-five-a of the real property law with respect\nto such transaction.\n 2. Restrictions on advertising. In addition to such other rules,\nregulations and policies as the superintendent of financial services may\npromulgate to effectuate the purposes of this article, the\nsuperintendent of financial services shall prescribe regulations\ngoverning the advertising of mortgage loans, including, without\nlimitation, the following requirements:\n (a) All advertisements by a mortgage broker, mortgage banker or exempt\norganization shall contain the name and an office address of such\nentity, which in the case of licensees and registrants shall conform to\na name and address on record with the department of financial services;\n (b) No licensed mortgage broker or mortgage banker shall advertise its\nservices in any media, whether print or electronic, without the words\n"registered mortgage broker" or "licensed mortgage banker" or similar\nwords therein;\n (c) No mortgage broker, mortgage banker or exempt organization shall\nadvertise information concerning mortgage loans, including rates,\nmargins, discounts, points, fees, commissions or other material\ninformation, including material limitations on such loans, unless such\nentity is able to make such mortgage loans available to a reasonable\nnumber of qualified applicants;\n (d) All advertisements by mortgage brokers must include language\nindicating that such brokers may not make loans; and\n (e) The term "advertisement" shall not include promotional material\ncontaining fifteen words or less which does not contain references to\nspecific rates, points, discounts, fees, material loan factors, etc.,\nsuch as imprinted pencils, pens or balloons.\n 3. Required disclosures. I
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