Question

Lenders, brokers, servicers, and others who engage in mortgage advertising.

a) Must use vague language to avoid legal issues
b) Must disclose all information in advertising
c) Are exempt from advertising regulations
d) Must provide advertisements to the government for review

Answer 1

Mortgage advertisers must disclose all relevant information and ensure that any claims made are true, abiding by consumer protection laws and FTC regulations to avoid committing fraud.

Step-by-step explanation:

Lenders, brokers, servicers, and others who engage in mortgage advertising must disclose all information in their advertising.

This requirement is enforced by the Federal Reserve (the Fed) and other regulatory bodies to ensure compliance with a variety of consumer protection laws. In addition, the Federal Trade Commission (FTC) mandates that presented claims in the advertising must be factually true and that false or misleading statements can be illegal if they constitute fraud.

Overall, this enforces a standard of honesty and transparency in commercial practices, particularly in the sensitive area of mortgage lending.