Misrepresentation is a huge flag for the Feds as they crack down on shady mortgage advertisers. Ads touting their supposed affiliation with federal programs or false mortgage rate claims are no-no’s according to NBC News.com,
The feds warned the mortgage industry on Monday that potentially false or misleading advertisements will not be tolerated. The Consumer Financial Protection Bureau and the Federal Trade Commission announced that they have issued a total of 32 warning letters to mortgage lenders and mortgage brokers to clean up their ads. They have also opened 19 formal investigations into companies that may have committed more serious violations of law.
Confusing and misleading consumers is prohibited as it can cause great harm as people make some of the biggest decisions of their lives. It is refreshing to see the government paying serious attention to mortgage companies and holding them accountable for fair and truthful advertising.
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