Liability of advertising spokesperson for mortgage broker for certain damages.
1. An advertising spokesperson for a mortgage broker is jointly and severally liable with the mortgage broker for damages caused by the mortgage broker by fraud, embezzlement, misappropriation of property, a violation of the provisions of this chapter or the regulations adopted pursuant thereto, or an action of the mortgage broker that is grounds for disciplinary action, if:
(a) The advertising spokesperson knew or should have known of the fraud, embezzlement, misappropriation of property, violation of the provisions of this chapter or the regulations adopted pursuant thereto, or action of the mortgage broker that is grounds for disciplinary action; or
(b) In advertising for the mortgage broker, the advertising spokesperson knew or should have known that:
(1) The conduct of the advertising spokesperson was likely to deceive, defraud or harm the public or any person who engaged in business with the mortgage broker; or
(2) The advertising spokesperson was disseminating material information concerning the mortgage broker or the business, products or services of the mortgage broker which was false or misleading.
2. As used in this section:
(a) “Advertising for a mortgage broker” means advertising or otherwise promoting a mortgage broker or the business, products or services of the mortgage broker using any medium of communication.
(b) “Advertising spokesperson for a mortgage broker” or “advertising spokesperson” means a person who consents to and receives compensation for using his name or likeness in advertising for a mortgage broker.
Last modified: February 27, 2006