Current through Register Vol. 54, No. 44, November 2, 2024
Section 305.3 - General provisions(a) With respect to a loan broker, the following are considered unfair methods of competition and unfair or deceptive acts or practices: (1) Employing a device, scheme or artifice to defraud.(2) Making false or misleading statements of fact or omitting material facts in order to make a statement not misleading.(3) Engaging in an act, practice or course of conduct which creates a likelihood of confusion or misunderstanding.(4) Failing to use due diligence and make reasonable efforts to procure a loan on behalf of a borrower.(5) Retaining a fee paid by a borrower to the loan broker where a loan is not procured within the time specified by the loan broker at the rate, term and overall cost agreed to by the loan broker and borrower, regardless of an express written agreement to the contrary. This paragraph does not apply if the failure to procure a loan is due solely to the borrower's negligence or outright refusal to provide information specifically requested by the loan broker.(6) Failing to escrow a fee which is paid by the borrower prior to procuring a loan in an interest bearing account of an institution regulated by the Federal Reserve Board, the Federal Home Loan Bank Board, Comptroller of the Currency or the Department of Banking.(7) Failing to promptly refund to the borrower an escrowed amount with interest if a loan is not procured as set forth in paragraph (5).(b) This section may not be interpreted to limit the power of the Attorney General to determine that another practice is unlawful under sections 1-9.2 of the Unfair Trade Practices and Consumer Protection Law (73 P. S. §§ 201-1-201-9.2).