There can be a lot of risk in sending out mortgage advertisements in today’s market. If you are thinking about preparing a piece which offers certain loan products that your company offers, you need to have an understanding of the rules that apply to mortgage advertising. Although the rules vary by state, it is helpful to review what rules some states have issued concerning the marketing of mortgage loans.Here’s an example of a restricting statute from Connecticut’s Non-depository First Mortgage Lenders and Brokers statute that closely regulates the advertisement of mortgage loans:Sec. 36a-497: (Formerly Sec. 36-440l). AdvertisementsNo person licensed pursuant to section 36a-489 shall:(1) Advertise or cause to be advertised in this state, any first mortgage loan in which such person intends to act only as a first mortgage broker unless the advertisement includes the following statement, clearly and conspicuously expressed: BROKER ONLY, NOT A LENDER; or(2) In connection with an advertisement in this state, use(A) a simulated check(B) a comparison between the loan payments under the first mortgage loan offered and the loan payments under a hypothetical loan or extension of credit, unless the advertisement includes, with respect to both the hypothetical loan or extension of credit and the first mortgage loan being offered, the interest rate, the loan balance, the total amount of finance charges, the total number of payments and the monthly payment amount that would be required to pay off the outstanding loan balance shown(C) representations such as “verified as eligible”, “eligible”, “preapproved”, “prequalified” or similar words or phrases, without also disclosing, in immediate proximity to and in similar size print, language which sets forth prerequisites to qualify for the first mortgage loan, including, but not limited to, income verification, credit check, and property appraisal or evaluation; or(D) any words or symbols in the advertisement or on the envelope containing the advertisement that give the appearance that the mailing was sent by a government agency.As can be seen by a close reading of Connecticut’s advertisement law, this state places many limitations on what you can and cannot do when you advertise mortgage loans to Connecticut borrowers.For example the Connecticut law contains the following rules:1. When acting as a broker, your ad must state “BROKER ONLY, NOT A LENDER”2. You can’t use a “simulated check” in your mailer piece sent to Connecticut borrowers.3. If you are doing a comparison of loan payments between two loan scenarios, you must also state for both examples: 1) interest rate, loan amount, total finance charges, total number of payments (loan term), and the monthly payment required to pay off the entire loan amount.4. If you tell the consumer that he or she is “Verified as Eligible”, “Eligible”, “Preapproved”, or “Prequalified” – then you must also (in same area of the mailer and similar font size) state what the required conditions are to qualify for the loan such as income verification, credit check, and property appraisal. Note that some states (Virginia for example) will not let you write “Preapproved” on your mailer unless you have already done a complete underwriting review of the recipient’s loan application.5. You can’t make your ad look like it is coming from the government.We chose to show you this Connecticut statute because the above rules, although not required by each state in the USA, are good rules of thumb. Please check each state’s law for more information before considering any mailer campaign into that state.Another state recently enacted rules restricting advertising of licensed lenders and brokers in the state of Idaho:(From Idaho Rules Pursuant to Idaho Residential Mortgage Practices Act)12.01.10.040.: Deceptive Advertising (Rule 40)01. Advertising. Advertising means making or permitting to be made any oral, written, graphic or pictorial statements, in any manner, in the course of the solicitation of business. Deceptive advertising is defined to include the following practices by a licensee, or a person required to be licensed under the Act:a. Making a representation or statement of fact in an advertisement if the representation or statement is false or misleading, or if the licensee does not have sufficient information upon which a reasonable belief in the truth of the representation or statement could be based.b. Advertising without clearly and conspicuously disclosing the licensee’s business name.c. Engaging in bait advertising or misrepresenting, directly or indirectly the terms, conditions or charges incident to the mortgage loan being advertised. Bait advertising, for these purposes, means an alluring, but insincere offer to procure, arrange, or otherwise assist a borrower in obtaining a mortgage loan on terms which the licensee cannot, does not intend, or want to provide, or which the licensee knows cannot be reasonably provided. Its purpose is to switch borrowers from obtaining the advertised mortgage loan product to obtaining a different mortgage loan product, usually at a higher rate or on a basis more advantageous to the licensee.d. Advertising an address at which the licensee conducts no mortgage brokering or lending activities or for which the licensee does not hold a license.e. Advertising in a manner that has the effect of misleading a person to believe that the advertisement or solicitation is from a person’s current mortgage holder, a government agency, or that an offer is a limited opportunity when such is not the case.Idaho Rules Pursuant to Idaho Residential Mortgage Practices Act, § 12.01.10.040, et. seq.These Idaho rules also reflect the general ideas that “Deceptive Advertising” will not be tolerated within their state.Idaho regulates deceptive advertising by prohibiting:• False representation• “blind” advertising (not including your company’s licensed name in the ad)• Engaging in “Bait Advertising” – sometimes referred to as “Bait and Switch”• Advertising using a false address or an address for a location that is not properly licensed by the state• Advertising so that the ad looks like it comes from the government, from the consumer’s current lender/servicer, or that the loan scenario is a “limited opportunity”We provide you with these two statutes to give you an idea of how the states attempt to regulate your advertising practices. Note that almost every state will have some sort of statute or rules regulating advertising. Nonetheless, you should obtain and review a copy of the advertising rules from each of the states in which your intend to perform direct marketing.

There can be a lot of risk in sending out mortgage advertisements in today’s market. If you are thinking about preparing a piece which offers certain loan products that your company offers, you need to have an understanding of the rules that apply to mortgage advertising. Although the rules vary by state, it is helpful to review what rules some states have issued concerning the marketing of mortgage loans.Here’s an example of a restricting statute from Connecticut’s Non-depository First Mortgage Lenders and Brokers statute that closely regulates the advertisement of mortgage loans:Sec. 36a-497: (Formerly Sec. 36-440l). AdvertisementsNo person licensed pursuant to section 36a-489 shall:(1) Advertise or cause to be advertised in this state, any first mortgage loan in which such person intends to act only as a first mortgage broker unless the advertisement includes the following statement, clearly and conspicuously expressed: BROKER ONLY, NOT A LENDER; or(2) In connection with an advertisement in this state, use(A) a simulated check(B) a comparison between the loan payments under the first mortgage loan offered and the loan payments under a hypothetical loan or extension of credit, unless the advertisement includes, with respect to both the hypothetical loan or extension of credit and the first mortgage loan being offered, the interest rate, the loan balance, the total amount of finance charges, the total number of payments and the monthly payment amount that would be required to pay off the outstanding loan balance shown(C) representations such as “verified as eligible”, “eligible”, “preapproved”, “prequalified” or similar words or phrases, without also disclosing, in immediate proximity to and in similar size print, language which sets forth prerequisites to qualify for the first mortgage loan, including, but not limited to, income verification, credit check, and property appraisal or evaluation; or(D) any words or symbols in the advertisement or on the envelope containing the advertisement that give the appearance that the mailing was sent by a government agency.As can be seen by a close reading of Connecticut’s advertisement law, this state places many limitations on what you can and cannot do when you advertise mortgage loans to Connecticut borrowers.For example the Connecticut law contains the following rules:1. When acting as a broker, your ad must state “BROKER ONLY, NOT A LENDER”2. You can’t use a “simulated check” in your mailer piece sent to Connecticut borrowers.3. If you are doing a comparison of loan payments between two loan scenarios, you must also state for both examples: 1) interest rate, loan amount, total finance charges, total number of payments (loan term), and the monthly payment required to pay off the entire loan amount.4. If you tell the consumer that he or she is “Verified as Eligible”, “Eligible”, “Preapproved”, or “Prequalified” – then you must also (in same area of the mailer and similar font size) state what the required conditions are to qualify for the loan such as income verification, credit check, and property appraisal. Note that some states (Virginia for example) will not let you write “Preapproved” on your mailer unless you have already done a complete underwriting review of the recipient’s loan application.5. You can’t make your ad look like it is coming from the government.We chose to show you this Connecticut statute because the above rules, although not required by each state in the USA, are good rules of thumb. Please check each state’s law for more information before considering any mailer campaign into that state.Another state recently enacted rules restricting advertising of licensed lenders and brokers in the state of Idaho:(From Idaho Rules Pursuant to Idaho Residential Mortgage Practices Act)12.01.10.040.: Deceptive Advertising (Rule 40)01. Advertising. Advertising means making or permitting to be made any oral, written, graphic or pictorial statements, in any manner, in the course of the solicitation of business. Deceptive advertising is defined to include the following practices by a licensee, or a person required to be licensed under the Act:a. Making a representation or statement of fact in an advertisement if the representation or statement is false or misleading, or if the licensee does not have sufficient information upon which a reasonable belief in the truth of the representation or statement could be based.b. Advertising without clearly and conspicuously disclosing the licensee’s business name.c. Engaging in bait advertising or misrepresenting, directly or indirectly the terms, conditions or charges incident to the mortgage loan being advertised. Bait advertising, for these purposes, means an alluring, but insincere offer to procure, arrange, or otherwise assist a borrower in obtaining a mortgage loan on terms which the licensee cannot, does not intend, or want to provide, or which the licensee knows cannot be reasonably provided. Its purpose is to switch borrowers from obtaining the advertised mortgage loan product to obtaining a different mortgage loan product, usually at a higher rate or on a basis more advantageous to the licensee.d. Advertising an address at which the licensee conducts no mortgage brokering or lending activities or for which the licensee does not hold a license.e. Advertising in a manner that has the effect of misleading a person to believe that the advertisement or solicitation is from a person’s current mortgage holder, a government agency, or that an offer is a limited opportunity when such is not the case.Idaho Rules Pursuant to Idaho Residential Mortgage Practices Act, § 12.01.10.040, et. seq.These Idaho rules also reflect the general ideas that “Deceptive Advertising” will not be tolerated within their state.Idaho regulates deceptive advertising by prohibiting:• False representation• “blind” advertising (not including your company’s licensed name in the ad)• Engaging in “Bait Advertising” – sometimes referred to as “Bait and Switch”• Advertising using a false address or an address for a location that is not properly licensed by the state• Advertising so that the ad looks like it comes from the government, from the consumer’s current lender/servicer, or that the loan scenario is a “limited opportunity”We provide you with these two statutes to give you an idea of how the states attempt to regulate your advertising practices. Note that almost every state will have some sort of statute or rules regulating advertising. Nonetheless, you should obtain and review a copy of the advertising rules from each of the states in which your intend to perform direct marketing.

It can be a high risk for the costs of mortgage ads in today 'is the market. If you plan a play about the preparation, certain loan products offered by your company, you need to understand the rules that must apply the mortgage advertising, offers. Although the rules vary by state, it is helpful to consider what rules were issued in some states on the marketing of mortgage loans. Here 'is an example of a limitation of the statute of Connecticut''sNon-Depot First Mortgage Lenders and Brokers Act governs well that the display of mortgage loan: Sec. 36a-497 (Formerly Sec. 36-440L). View No person licensed pursuant to § 36a-489 are: (1) advertising or lead that may be advertised in this state, plans a first mortgage in which such person to act only as a first mortgage broker if the information is the following statement loud and clear expression only includes broker,NOT a lender or (2) In connection with an advertisement in this state is to use (A) a simulated check (B) a comparison between the loan payments under the first mortgage loan and the loan offered under a hypothetical loan or extension of credit lines, unless the advertisement contains both in terms of the hypothetical loan or extension of credit and the first mortgage is offered, the interest rate on the loan balance, the total amount of financing costs, the totalNumber of payments and the monthly payment amount will be required to pay off the outstanding loan balance would be shown (C) representations, as verified as eligible "," consider "," preapproved "," prequalified "or similar words and phrases, without at the same time, the print publication, in the immediate vicinity and in the same size, language, sets conditions to qualify for the first mortgage, including but not limited to, income verification, credit and property appraisal orEvaluation, or (D) any words or symbols in the ad or on the envelope containing the ad, the impression is that the show was by a government agency be sent to. As can be seen through a close reading of advertising Connecticut's law, makes this state a lot of restrictions of what you can and can not do if you are advertising for mortgage loans to Connecticut borrowers. For example, the Connecticut law contains the following rules: 1. When acting as a broker, yourAd must state "BROKER ONLY NOT creditor" 2. Can''t you use to check a "simulated" in your mail piece to Connecticut borrowers. 3. When you do a comparison of loan payments between two loan scenarios, you also need the state for the two examples: 1) interest rate, loan amount required, total funding costs, the total number of payments (loan term), and the monthly payment to pay off the entire loan amount. 4. If you tell the consumer that he or she is "Verified as eligible""Permitted", "Preapproved" or "prequalified" – then you must also specify (in the same area of the mailer or similar size) that the necessary conditions for the loan, such as income verification to qualify for credit and property appraisal. Note that some states (Virginia to allow, for example) do not, you will write "Preapproved" in the letter, if you already have a full review of the acquisition loan made to the recipient 'request. 5. Can''t you make your ad look as it comesby the government. We have for you the Connecticut statute, because the above rules, but which are not required by any state in the U.S., good rules of thumb. Please check each state's law for more information before considering all mailer campaign in that state. Another state recently adopted legislation restricting the advertising of licensed lenders and brokers in the state of Idaho: (From Idaho rules under Idaho Residential Mortgage PracticesAct) 12.01.10.040.: Misleading advertising (Article 40) 01 Advertising. Advertising making or permitting to be made any oral, written, graphic or pictorial statements, which in any way under the call of the company. Misleading advertising is defined to require the following practices by a licensee or a person belonging to be licensed under the Act: a. Making a representation or statement of fact in an advertisement if the Representation or statement is false or misleading, or if the licensee does not have sufficient information on which might support a reasonable belief in the truth of the representation or statement. b. advertising loud and clear without disclosure of the licensee 'of the company. c. Engaging in bait advertising or misrepresenting, directly or indirectly to the tender conditions and fees incident to the mortgage loans. Bait> Advertising for these purposes, is an alluring but insincere offer to procure, arrange, or otherwise assist a borrower in obtaining a mortgage loan on terms that may not be the licensee has no intention or wish to offer or the licensee knows can not be seriously challenged. Its task is to borrowers from obtaining mortgages receive the advertised product to another product to mortgages, more advantageous, as a rule at a higher rate or on the basis of the switchLicensee. d. Advertising an address at which the licensee shall not mortgage brokers or financing activities or for which the licensee does not hold a license. e. advertising in a way that the effect of misleading a person to believe that the advertisement or an invitation from the current one person''s mortgage holder is an authority, or that an offer for a limited opportunity, if not the case. Living Under the Rules Idaho — Mortgage Practices Act, § 12.01.10.040, et. f.. These rules also reflect the Idaho general ideas that are "misleading advertising does not" tolerate in their country. Idaho regulates misleading advertising by prohibiting: • False representation • "Blind" advertising (without license name of your company 'in the ad) • Engaging in "bait advertising" – sometimes called "Bait and Switch" •> Advertising with an incorrect address or an address for a location that is not properly licensed by the State • advertising, so that the display looks like it from the government, from the current creditor consumer''s / servicer, or that the loan scenario, a "limited opportunities" We offer you these two laws to give you an idea of how the states try to regulate your advertisement. Note that almost every state have some kind of law orRules to regulate advertising. However, you should catch up and a copy of the rules on advertising from the various states in which you want to run a direct marketing.