53-270.  Prohibited acts.

Reverse mortgage lenders are prohibited from engaging in any of the following acts in connection with the making, servicing, or collecting of a reverse mortgage loan:

(1)        Misrepresenting material facts, making false promises, or engaging in a course of misrepresentation through agents or otherwise.

(2)        Failing to disburse funds in accordance with the terms of the reverse mortgage loan contract or other written commitment.

(3)        Improperly refusing to issue a satisfaction of a mortgage.

(4)        Engaging in any action or practice that is unfair or deceptive, or that operates a fraud on any person.

(5)        Contracting for or receiving shared appreciation or shared value, except as provided in G.S. 53-270.1.

(6)        Closing a reverse mortgage loan without receiving certification from a person who is certified as a reverse mortgage counselor by the State that the borrower has received counseling on the advisability of a reverse mortgage loan and the various types of reverse mortgage loans and the availability of other financial options and resources for the borrower, as well as potential tax consequences.

(7)        Failing to comply with this Article. (1991, c. 546, s. 1; 1995, c. 115, s. 1; 1998-116, s. 1.)