§ 7-307. Prohibited activities by foreclosure consultant

   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.

HISTORY: 2005, ch. 509; 2008, chs. 5, 6.