Sample Mortgage Ads

Some Ads just don’t meet the required disclosures?

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As a compliance attorney I take special note of advertisements I see in my day’s activities. I see some very thorough stuff and then some not so thorough advertisements. Sometimes there’s a total disregard of requirements. But will there be any push back on a bad ad? Will a regulator be informed of the non-compliance and deception of certain ads? (Not often).

This ad was shared with me by one of our readers. Fun times. Can you spot the various missing disclosures? (Hint – there are none, just call this number to get a loan?) My advice – don’t call these guys, why would you?

Marketing with Realtors

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Co-Marketing With Real Estate Agents

If you are a loan officer that works with Real Estate Agents to help their clients obtain mortgage financing to purchase homes in your area, you likely have done some co-marketing with real estate agents.

The main example of co-marketing we see are flyers that market both the real estate agent and the loan officer / mortgage lender that offers to assist home buyers with their financing needs.

We also see Financing Available ads built into an Open House Flyer for a home with sample loan scenarios offered in the flyer.

So what rules do we need to be concerned with here? Rather than discuss all the rules, lets discuss the relevant questions that I would ask:

  1. How is this particular piece being distributed to consumers. Will it be a “take one” flyer available in a real estate office or open house? Or will this piece be emailed to consumers or posted to social media?
  2. Has all required NMLS licensing disclosures (for both the individual loan officer and his employing and state required advertising disclosures been added to the piece?
  3. Does the real estate agent list any required licensing disclosures next to the real estate agents name and the Real Estate Company’s name.
  4. Who is paying for the various costs involved with preparing, printing and distributing the flyer or other marketing piece to consumers? Is the cost shared in some way between the real estate agent and the loan officer/lender?

These questions should help in your analysis of the co-marketing piece you are considering doing with the real estate agent. Think about what rules are triggered here when you reviewing your co-marketing piece so you can be sure to address these rules and any apparent regulatory risk present in the co-marketing pieces on which you are working.

Model ARM Disclosure – Adjustable Rate Mortgage Ad

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So you want to place an add for a 5/1 ARM on a flyer, a mailer, a banner ad, a Facebook post? What needs to be in that ad? Lets assume you have some triggering terms like a payment amount or an interest rate so you will need to make all applicable disclosures.ARM Rates

Here’s the list of what must be your ad:
1) The APR (annual percentage rate). This should be listed right next to the statement of the interest rate – in same size font and same font color etc. It must be clear and conspicuous.
2) Make sure its clear that your ad in an adjustable rate mortgage loan (ARM) product and do not hide this fact.
3) State the effective date of the interest rate you have displayed.
4) Include a statement that the rates are subject to change.
5) State the payment amount during the initial five year period.
6) And here’s the tricky part – state that remaining terms of the repayment. This requires you to tell the borrower how the payment will change after the five years are up.

Need more info, check out the Advertising Disclosure Samples at our main site: www.advertiseyourloans.com

Sidewalk Sale on Mortgages?

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Mortgage Ads on the Sidewalk? I was walking through a business area to get coffee while my car was getting some work done at a repair shop when I came across this mortgage ad. I noticed no licensing information, no company name, in fact no name at all, just a phone number. Does this person need a license to lend his or her own money? I’m pretty sure they do though although there may still be an exception from licensing if you only make a couple of loans per year or you are carrying back financing as the seller of a property. So I guess it all comes down to how effective this sidewalk advertising really is and how much business (if any) this entrepreneur is getting,
By the way, I’m convinced that the ad is a sidewalk ad like those ones you see in supermarket aisles that are affixed to the floor. I don’t think that this ad fell off a sign post and landed there on the sidewalk. Could this be the new wave of the future or is this just “littering? Only time will tell.