69V-40.011. Misleading Practice; Penalty

The taking and recording of a mortgage is tantamount to a commitment, and when funds are not available for immediate disbursement to the mortgagor, such procedure will be considered a misleading and deceptive practice, and to warrant suspension or revocation of the license of the licensee who does so, unless, prior to such recording, the licensee informs the mortgagor in writing of a definite date by which payment will be made, and secures the mortgagor’s written permission for the delay thus entailed.