Prohibited activities by foreclosure consultant

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    A foreclosure consultant may not:

        (1)    Engage in, arrange, offer, promote, promise, solicit, participate in, assist with, or carry out a foreclosure rescue transaction;

        (2)    Claim, demand, charge, collect, or receive any compensation until after the foreclosure consultant has fully performed each and every service the foreclosure consultant contracted to perform or represented that the foreclosure consultant would perform;

        (3)    Claim, demand, charge, collect, or receive any interest or any other compensation for any loan that the foreclosure consultant makes to the homeowner that exceeds 8% a year;

        (4)    Take any wage assignment, any lien of any type on real or personal property, or other security to secure the payment of compensation;

        (5)    Receive any consideration from any third party in connection with foreclosure consulting services provided to a homeowner unless the consideration:

            (i)    Is first fully disclosed in writing to the homeowner;

            (ii)    Is clearly listed on any settlement documents; and

            (iii)    Is not in violation of any provision of this subtitle;

        (6)    Receive a commission, regardless of how described, for the sale of a residence in default that exceeds 8% of the sales price;

        (7)    Receive any money to be held in escrow or on a contingent basis on behalf of the homeowner;

        (8)    Acquire any interest, directly or indirectly, or by means of a subsidiary, affiliate, or corporation in which the foreclosure consultant or a member of the foreclosure consultant’s immediate family is a primary stockholder, in a residence in default from a homeowner with whom the foreclosure consultant has contracted;

        (9)    Take any power of attorney from a homeowner for any purpose, except to inspect documents as provided by law; or

        (10)    Induce or attempt to induce any homeowner to enter into a foreclosure consulting contract that does not comply in all respects with this subtitle.


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