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About Admin

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.

Disclosure Requirements – State Required Disclosures in a Mailer Piece

This entry was posted in Advertising Rules on by

Not all states have a disclosure requirement. You should disclose the following in all ads:

  • The licensed name of your company
  • Your company’s licensed address
  • Your toll free phone number
  • NMLS ID #
  • Equal Housing Lender Logo

Here’s an example of state required Disclosures for a 50 state licenses mortgage lender. Check with your compliance officer or attorney when preparing your version of such a provision in your mortgage ads. This sample will help you get on your way to having a fifty state required disclosure for mailer type mortgage ad mailed nation wide.

Here it is:

 

All loan programs are offered by Main Street Mortgage, Inc. 33 Main Street, Anytown, Pennsylvania, Zip. 888-555-5555/  All loans will be secured by a lien against your property. Not all applicants will be approved. Terms and conditions apply, call for details. AZ Mortgage Banker License No. 1234567; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act License No. 1234567; Regulated by the Colorado Division of Real Estate; GA Residential Mortgage License No. 1234567; IL Residential Mortgage Licensee # 1234567; IL Residential Mortgage Licensee MB.1234567 – Department of Financial Regulation; MA Mortgage Lender & Mortgage Broker License No. MC1234567; Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; NJ Residential Mortgage Lender License; Licensed Mortgage Banker – NYS Department of Financial Services; OH Mortgage Broker Act Mortgage Banker Exemption No. MBMB.1234567; OR Mortgage Lender License # ML-1234567; Rhode Island Licensed Lender; VA Exempt Company Registration; WA Consumer Loan License No. CL-1234567; NMLS No. 1234567.

 

10-1 ARM Loan with Disclosures – What’s Wrong with this Ad?

This entry was posted in Advertising Rules on by

IMG_0052[1]Let’s look at an Advertisement for a 10-1 ARM Loan:

 

This ad has a really big 3.250% Interest rate. That’s low right?  But wait, doesn’t Regulation Z require the APR to be same size font and and apperance as the interest rate?

How’s the disclosure on this advertisement?  Lets look at the back side:

10-ARM ad offer page

The disclaimer is pretty good:  It has the rate available as of date (August 1, 2014), has the necessary FICO score, indicates that the loan is an ARM and that the payment is subject to change, says max LTV and CLTV, indicates that ad is for no cash out refi, owner occupied, and shows how and when the payment can/will change:

APR is Annual Percentage Rate and is current as of August 1, 2014. Rate based on 10/1 ARM, with no more than 70% LTV and CLTV.  $749 origination fee less a $300 savings …

Co-Branded Mortgage Ad Example – Realtor and Mortgage Company

This entry was posted in Sample Mortgage Ads and tagged RESPA Section 8 on by

Many people ask us questions about co-branded marketing and what is permitted and how to structure the co-branded marketing piece and properly share in the costs of printing and mailing. Here’s an example of a co-branded marketing piece we encountered recently between a real estate firm and a mortgage lending company. See much of the cost should have been paid by the realtor and how much by the mortgage company. What about the termite inspection company? How much of the cost should that company have paid?  Is the Termite Company a Settlement Service Provider subject to RESPA

Answer: most likely yes ……

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