(a) No lender shall knowingly do any of the following:
(1) Make or broker a home loan based on an appraisal which unreasonably overstates the value of the property, or
(2) Prepare a home loan application which misrepresents the incomes, assets or expenses of the borrower, or
(3) Request a borrower to sign an inaccurate or incomplete home loan document, or
(4) Commit an unconscionable act or practice in connection with a home loan transaction. A lender acts unconscionably when he knowingly takes advantage of the inability of a borrower to reasonably protect his interests because of the borrower's physical or mental infirmities, ignorance, illiteracy or inability to understand the language of the home loan transaction, or
(5) Give or accept a fee, kickback or anything of value as defined by the Real Estate Settlement Procedures Act in exchange for referral of settlement service business involving a mortgage loan regulated by the Real Estate Settlement Procedures Act, or
(6) Pay a contractor under a home-improvement or construction contract from the proceeds of a home loan other than (i) by an instrument payable to the borrower or jointly to the borrower and the contractor, or (ii) at the election of the borrower, through a third-party escrow agent in accordance with terms established in a written agreement signed by the borrower, the lender, and the contractor prior to the disbursement, or
(7) Shall steer a borrower to a loan product materially detrimental to the interests of the borrower and solely for the monetary benefit of the lender, or
(8) In a land installment contract sale require a vendee, as a condition of the sale, to sign a quitclaim deed, deeding the property in question to the vendor in the event of a default by the vendee, or
(9) Fail to make any disclosure as required by Section 795.22.
(Ord. 271-03. Passed 7-22-03.)