The Federal Trade Commission (FTC) recently announced a settlement of a lead generation enforcement action. The settlement reflects that the FTC remains focused on lead generation and, more specifically, mortgage advertising, even though it shares enforcement authority for nonbank mortgage advertising with the Consumer Financial Protection Bureau (CFPB). In addition, the settlement is an important reminder that lead generators and buyers need to review advertising and marketing for compliance with applicable laws and regulations.
The FTC's complaint alleged that the online lead generator operated websites that advertised low interest-rate loans as fixed-rate mortgages, when, in fact, they were adjustable-rate mortgages that could become more expensive for borrowers over time. The advertising also allegedly failed to include required disclosures, such as the annual percentage rate, amount of down payment, and repayment terms that figure into the advertised payment amounts and interest rate.
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Topics: CFPB, Enforcement Actions, FTC, Lead Generators, Mortgages, Nonbank Firms
Published In: Antitrust & Trade Regulation Updates, Communications & Media Updates, Consumer Protection Updates, Finance & Banking Updates, Residential Real Estate Updates
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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