In addition to any applicable licensing requirements under either the MBPA or CLA, all individuals who offer or negotiate loan terms for borrowers are prohibited from directly or indirectly employing any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person; engaging in any unfair or deceptive practice toward any person; obtaining property by fraud or misrepresentation; soliciting or entering into a contract with a borrower that provides in substance that the mortgage broker or loan originator may earn a fee or commission through “best efforts” to obtain a loan modification even though no loan modification is actually obtained for the borrower.

The Director’s position on this matter shall not be construed to include employees of nonprofit HUD-approved housing counseling agencies or employees of lenders or servicers as long as such individuals are acting in the course of their employment.

Noncompliance may result in the imposition of any of sanctions including, but not limited to injunctions, fines, restitution to the borrower, refusal to renew a license, refusal to grant a license, or license revocation.