New FTC rule to prohibit misrepresentation when advertising mortgage products [or does it]
A new FTC rule went into effect on August 19 to protect consumers from misrepresentation when advertising mortgage products. It will affect real estate agents who provide a lender's rate sheet to consumers by requiring disclaimers and imposing record keeping requirements.
Now, as a Charleston real estate agent, I don't personally get involved in the mortgage process other than to recommend several reliable and ethical local lenders to my clients and what might be interpreted as being affected, providing current mortgage rates in regular Charleston mortgage reports posted on this blog.
“Providing a consumer general information about market rates for different types of mortgages products will likely not be subject to the Rule because these are not related to a specific mortgage product.”
But since it's better to be safe than sorry, you won't get any kind of rate quotes in the future.
Now about this advertising stuff that the FTC is concerned with and why consumers need protection. Take a look at the montage of ads and what do you think of them.
I think they should be outlawed and that is probably what the intent of the new rules are.
But as of this morning (which is of course after August 19), here are a couple of screen captures that seem to be in the same spirit. Not good so maybe the FTC should rethink how to better protect the consumer because these companies probably have really good attorneys who can figure out how to get around the rules.
Please folks, if you want to buy a home in Charleston and obtain financing or if you want to refinance your current residence in Charleston, please ask me for the names of several local lenders who will treat you right.
Don't fall for this stuff!