Do You Report Reg Z Advertising Violations?
Do you report Reg Z Advertising Rule violations when you see or hear them? You know, those mortgage ads that quote a low interest rate but don’t disclose loan terms? Or no APR? Or incorrectly stated!
Here’s an email I got from one of our mortgage girlfriends that I wanted to share with you – because if we all do our part to report violations, it will not only increase the professionalism in the industry, but level the playing field for everyone.
- I walked into a grocery store and the bank had a sign advertising a 2.37% fixed rate on one side, and on the other side, “no closing costs.”
So, I walked up to them and informed them their sign was misleading and a violation as it had no disclosure or APR on it. The person behind the counter said, “Oh, we are okay, we have a flyer attached below that tells about it.”
I advised him that the APR and such must be displayed in the same size (or larger) as the rate they were advertising, etc.
He told me I didn’t know what I was talking about, yet when I told him I teach this to Loan Officers through the NMLS and actually I DO know what I’m talking about it, he shrugged me off.
But the other lady there became very friendly. I told her that I would recommend changing it before you get fined. If not, I’m going to do what you did and turn them in to the CFPB.
Way to go girlfriend!
So, if you’d like to refresh yourself on exactly what the Reg Z Advertising Rules are, you’ll find a 17-minute class entitled, Reg Z Truth in Lending Advertising Rules (for DIVA members).
You’ll also find an article under BUSINESS BUILDERS with an example of a Realtor® Open House Flyer, with the correct disclosures.
So, do you think you’d report violations to the CFPB?