New Hampshire Consumer Protection and Prohibited Practices
Prohibited conduct
New Hampshire enforces both the Consumer Protection Act, RSA 358-A, and mortgage-specific prohibitions. Prohibited acts include misrepresenting loan terms, false or misleading advertising, bait-and-switch pricing, charging undisclosed fees, steering a borrower to a costlier loan without a legitimate reason, splitting fees for unearned services, paying kickbacks for referrals, coercing or improperly influencing an appraiser, and discriminatory treatment. The Home Loan Protection Act adds restrictions on high-cost loans and on loan flipping without a net tangible benefit.
Referral and appraisal rules
RESPA Section 8 and New Hampshire unfair-practice principles bar fees for mere referrals. Marketing services agreements must reflect actual services at fair market value. Appraisal independence rules prohibit telling an appraiser the desired value or withholding payment to influence a report.
Advertising
Ads must be accurate, identify the licensed entity, avoid guaranteed approval unless true, and disclose material conditions. No-closing-cost claims are deceptive if costs are recovered through a higher rate or a financed fee.
Worked example: A real estate office agrees to send leads to an MLO in exchange for $500 per closed loan. The MLO labels the payment marketing, but no actual marketing is performed. The payment is a referral fee, not a bona fide service fee, and violates anti-kickback and state unfair-practice rules. The MLO should refuse the arrangement and document the reason.
Traps
Intent is not always required for a deceptive-practice claim; a misleading statement can violate the law even if the borrower does not complain. A federally compliant disclosure does not cure a state deceptive practice. Do not use no-cost wording without verifying who actually bears the cost.