Current through all regulations passed and filed through September 16, 2024
(A) Every advertisement placed, or caused to
be placed, by a registrant or licensee shall, in manner
or form that is reasonably understandable to the average borrower:
(1) State the name of the registrant as
printed on its certificate of registration. If a registrant has been approved
by the superintendent to conduct business using a trade name or fictitious
name, the registrant may use its name, trade name, or fictitious name, or any
combination of them, as they appear on its certificate of
registration;
(2) State the
registrant's certificate of registration number and NMLS unique
identifier;
(3) State the full name
or other names of the licensee as listed on the NMLS consumer access website,
the licensee's license number, and NMLS unique identifier whenever a licensee's
name is placed in an advertisement; and
(4) State the registrant's office address as
listed on the registrant's certificate of registration.
(B) For purposes of paragraph (A)(2) of this
rule, a registrant may opt to state only its NMLS unique identifier in lieu of
stating both its certificate of registration number and NMLS unique
identifier.
(C) For purposes of
paragraph (A)(3) of this rule, a licensee may opt to state only
the
licensee's NMLS unique identifier in lieu of stating both the licensee's
license number and NMLS unique identifier.
(D)
It is a violation for a
registrant
to fail to update its website
within thirty calendar days after any information
becomes outdated or expired.
(E) It is a violation
for a registrant or licensee to place or cause to be placed any advertisement
that contains any material misrepresentation regarding any term of a
residential mortgage loan, including:
(1) Guaranteeing or
implying that residential mortgage loans will be approved or closed in an
unreasonably short period of time given market conditions at the time of the
advertisement.
(2) Indicating that
special terms, reduced rates, guaranteed rates, particular rates or any other
special feature of residential mortgage loans are available unless the
advertisement clearly states any limitations that apply.
(3) Using unqualified superlatives
including "lowest
rates," "lowest costs," "lowest payment plan," or "cheapest loans," or that
makes offers that cannot be reasonably fulfilled or substantiated.
(4) Using the words "new" or "reduced" or
similar words in connection with costs for more than ninety days after the
costs become effective.
(5)
Indicating that residential mortgage loans are available to borrowers with
"previous bankruptcy," "no credit," "bad credit," or the like unless the
advertisement clearly explains any limitations that apply, or states that
"certain limitations apply, call for details." In any written advertisement,
the actual limitations or the warning that "certain limitations apply, call for
details" shall be clearly legible.
(6) Using an official government design,
format, symbol, logo, or seal unless its use is required or allowed by the
governmental entity.
(7) Using the
name of a person or entity that confuses or misleads a borrower as to the true
identity of the registrant placing or sending the advertisement regardless of
any statement elsewhere in the advertisement identifying the true identity of
the registrant or licensee.
(F) A violation of
12 C.F.R.
1014.2,
1014.3, or
1014.4, as in effect on
May
1, 2024, shall constitute a violation of this rule.
(G)
The
provisions in this rule apply to licensees employed by or associated with
qualified exempt entities.
(H)
Written or oral statements that are purely informational and not designed to
effect or create interest in purchasing the services of a registrant or
licensee are not subject to this rule.
