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What must be included in a mortgage advertisement?

What must be included in a mortgage advertisement?

Further, if a specific periodic payment amount is stated in the advertisement, it needs to include: the principal amount; the simple annual interest rate; and. if the mortgage is an ARM, the maximum interest rate, how often the interest rate can change and the ARM caps.

What types of advertisements must be in compliance with Reg DD?

While Regulation DD is primarily focused on depository institutions, its advertising provisions in §230.8 “apply to any person who advertises an account offered by a depository institution, including deposit brokers.”2 Regulation DD broadly defines an advertisement as a commercial message in any medium that promotes …

Does TILA apply to advertising?

Truth in Lending Act(TILA)/Reg Z Regulation Z broadly defines advertisements as any commercial messages that promote consumer credit; and the official commentary to Regulation Z states that the regulation’s advertising rules apply to advertisements delivered electronically.

What must you do when advertising an interest rate?

The advertised annual percentage rate may be expressed using the abbreviation “APR.” The advertisement must also state, if applicable, that the annual percentage rate is subject to increase after consummation. 5.

What are triggering terms in mortgage advertising?

A triggering term is a word or phrase that legally requires one or more disclosures when used in advertising. Triggering terms are defined by the Truth in Lending Act (TILA) and are designed to protect consumers from predatory lending practices.

What is the map rule?

Mortgage Acts and Practices – Advertising Final Rule (MAP Rule) The Mortgage Acts and Practices – Advertising Rules (MAP Rules) are designed to prohibit misrepresentations in a commercial communication regarding mortgage products.

What federal regulation must all advertisements comply with?

The FTC Act prohibits unfair or deceptive advertising in any medium. That is, advertising must tell the truth and not mislead consumers. A claim can be misleading if relevant information is left out or if the claim implies something that’s not true.

What forms of media are exempt from some advertising requirements?

Section 230.8(e) exempts certain types of media and certain indoor signs from some of the section’s advertising rules. a. Broadcast or electronic media, such as television or radio. However, the exemption does not extend to Internet and email advertisements.

Which of the following ways of advertising would be allowed under the federal Truth-in-Lending laws?

Which of the following ways of advertising would be allowed under the Federal Truth-In-Lending Laws (Regulation Z)? (D) Generic language, such as payments less than rent, is allowed under Regulation Z.

What are trigger terms in advertising?

A triggering term is a word or phrase that, when used in advertising literature, requires the presentation of the terms of a credit agreement. Triggering terms are intended to help consumers compare credit and lease offers on a fair and equal basis.

What is the federal rule or regulation that provides parameters for advertising residential mortgage loan products?

The answer is Truth-in-Lending Act and Regulation Z. A licensee advertising mortgage products and services must comply with the advertising laws and rules as set forth in the Truth-in-Lending Act and Regulation Z. Additional advertising rules for mortgage credit products are found in Regulation N (12 C.F.R. 1014).

What must be disclosed if triggering terms are used in an advertisement for a Heloc?

If any of the above term triggers are used, then the following must be disclosed: The amount or percentage of the down payment. The repayment terms. The annual percentage rate (APR); the term must be spelled out.

What are the requirements for an advertisement for a loan?

The requirements of § 1026.24 (f) (2) apply to advertisements for loans where more than one simple annual rate of interest will apply. The requirements of § 1026.24 (f) (3) (i) (A) require a clear and conspicuous disclosure of each payment that will apply over the term of the loan.

What does counselor mean in a mortgage advertisement?

Using the term “counselor” in an advertisement to refer to a for-profit mortgage broker or mortgage creditor, its employees, or persons working for the broker or creditor that are involved in offering, originating or selling mortgages. (7) Misleading foreign-language advertisements.

What is a preferred rate provision on a loan?

Some loans contain a preferred-rate provision, where the rate will increase upon the occurrence of some event, such as the consumer-employee leaving the creditor’s employ or the consumer closing an existing deposit account with the creditor or the consumer revoking an election to make automated payments.

Can a creditor advertise a credit program that is not available?

This provision is not intended to inhibit the promotion of new credit programs, but to bar the advertising of terms that are not and will not be available. For example, a creditor may advertise terms that will be offered for only a limited period, or terms that will become available at a future date.