KRS 286.8-220: Prohibited acts.

(1) No person shall make or cause to be made, in any document filed with the

commissioner, a governmental agency, the Nationwide Multistate Licensing System

and Registry, or in any proceeding under this subtitle, any statement that is, at the

time and in light of the circumstances under which it is made, false or misleading in

any material respect, including an omission of a material fact.

(2) No person shall, in connection with a transaction involving the mortgage lending

process, or in connection with the ope ration of a mortgage loan business or the

management or servicing of mortgage loans, directly or indirectly:

(a) Employ a device, scheme, or artifice to defraud;

(b) Engage in any act, practice, or course of business that operates or would

operate as a fraud or deceit upon any person;

(c) Fail to disburse funds in accordance with a loan commitment;

(d) Delay closing of any mortgage loan for the purpose of increasing interest,

costs, fees, or charges payable by the borrower;

(e) Upon receipt of a customer's written request, delay beyond five (5) business

days the issuance of a written loan payoff amount or to delay beyond ten (10)

business days the issuance of a payment history;

(f) Charge a fee for the issuance of an initial written loan payoff amount or

payment history for each calendar quarter as set out in paragraph (e) of this

subsection;

(g) Obtain property by fraud or misrepresentation;

(h) Fail to make disclosures as required by this subtitle or any other applicable

state or federal law, including regulations thereunder; or

(i) Fail to comply with state or federal laws, including the rules and regulations

thereunder, that are applicable to transacting business in Kentucky.

(3) Unless exempted by KRS 286.8 -020(1), no person shall transact business in

Kentucky unless it complies with the provisions of this subtitle.

(4) No person shall use prescreened trigger lead information derived from a consumer

report to solicit a consumer who has applied for a mortgage loan with another

mortgage loan company or mortgage loan broker, when the person:

(a) Fails to state in the initial solicitation that the person is not affiliated with the

mortgage loan company or mortgage loan broker with which the consumer

initially applied;

(b) Fails in the initial soli citation to conform to state and federal law relating to

prescreened solicitations using consumer reports, including the requirement to

make a firm offer of credit to the consumer;

(c) Uses information regarding consumers who have opted out of the prescree ned

offers of credit or who have placed their contact information on the state or

federal do-not-call registry; or

(d) Solicits a consumer with an offer of certain rates, terms, and costs with the

knowledge that the rates, terms, or costs will be subsequen tly changed to the

detriment of the consumer.