Beware of UDAP and UDAAP in Your Mortgage Ads

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There’s been a lot of enforcement on UDAAP lately in mortgage ads so what do we need to watch out for?

Some tips to be aware of:

  • When reviewing your ads, make sure the that the advertisement materials are accurate and easy to read.
  • Don’t use terms like “pre-approved” or “guaranteed” if in fact the recipient has not been preapproved or is not guaranteed to receive a loan from you.
  • Make sure your train your employees about UDAAP avoidance
  • Use scripts or call guides in your sales process to protect against UDAAP processes
  • Be careful about using small print or footnote disclosures to clarify what you mean in your advertised offer.
  • Avoid anything confusing or unclear in your headlines and your marketing message in your advertisements

See our UDAAP Article for More of these rules

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Our team has extensive experience in reviewing mortgage advertisements and advising clients about mortgage compliance issues including use of Compliance Management Systems, State and Federal compliance matters, and running the Legal and Compliance departments of major mortgage banking entities. Our company has Advertising Quick Hits learning Guides available as well as a self-study six week E-Course that will help your team member, or you, become more skilled at becoming an Advertising Compliance Officer for your company.