§ 47.5. Improper activities regarding mortgage loan modifications.

 A licensee providing mortgage loan modifications should not:

   (1)  Provide mortgage loan modifications for mortgage loans other than those held or serviced by the licensee in a manner inconsistent with §  47.3 (relating to provision of mortgage loan modification counseling to borrowers).

   (2)  Advise, encourage or permit a borrower to stop or delay making regularly scheduled payments on an existing mortgage loan unless a mortgage loan modification is completely negotiated and executed with the holder or servicer of the borrower’s mortgage loan and the mortgage loan modification provides for such a cessation or delay in making regularly scheduled payments on the existing mortgage loan.

   (3)  Accept, hold or transmit any money unless the licensee is operating in compliance with Federal and State law, including the Debt Management Services Act (63 P. S. § §  2401—2449) and the Money Transmission Business Licensing Law (7 P. S. § §  6101—6118).

   (4)  Charge advance fees to a borrower for a mortgage loan modification.

   (5)  Attempt to negotiate or contract with a borrower for a mortgage loan modification which the licensee knows or has reason to believe the borrower will not be able to afford.

   (6)  Enter into any contract or agreement to purchase a borrower’s property.

   (7)  Accept a power of attorney to represent a borrower or represent that the licensee has a power of attorney for a borrower.

   (8)  Fail in a timely manner to:

     (i)   Communicate with or on behalf of a borrower.

     (ii)   Act on any reasonable request from or take any reasonable action on behalf of a borrower.

   (9)  Engage in false or misleading advertising. Examples of false or misleading advertising include:

     (i)   Advertising which makes it appear that the licensee is a government agency.

     (ii)   Advertising which includes a ‘‘guarantee’’ unless there is a bona fide guarantee which will benefit a borrower.

     (iii)   Advertising which makes it appear that a licensee has a special relationship with lenders when no such relationship exists.

   (10)  Make a statement or engage in an action which is false, misleading, deceptive or inappropriate. Examples of false, misleading, deceptive or inappropriate statements or actions include:

     (i)   Leading a borrower to believe that payments do not need to be made on the borrower’s existing mortgage loan.

     (ii)   Encouraging or directing a borrower not to communicate with the holder or servicer of the borrower’s mortgage loan.

     (iii)   Leading a borrower to believe that a mortgage loan modification can be negotiated on behalf of the borrower when the licensee has reason to believe that a mortgage loan modification cannot be negotiated on behalf of the borrower.

     (iv)   Leading a borrower to believe that the borrower’s credit record will not be negatively affected by a mortgage loan modification when the licensee has reason to believe that the borrower’s credit record may be negatively affected by the mortgage loan modification.



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