Oregon Administrative Rules
Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION
Division 870 - DISHONEST, FRAUDULENT, UNFAIR AND UNETHICAL PRACTICES
Section 441-870-0080 - Advertising
Universal Citation: OR Admin Rules 441-870-0080
Current through Register Vol. 63, No. 9, September 1, 2024
(1) Advertising containing any of the following is false, misleading or deceptive:
(a) A statement or representation of a
specific installment amount in repayment of a loan without as least as
prominently disclosing the following information about the loan:
(A) Principal amount;
(B) Annual percentage rate;
(C) Whether the interest rate is fixed or
variable, and if variable, the loan terms;
(D) Number, amount and period of payments
scheduled to the date of maturity; and
(E) Balance due at maturity (balloon payment)
if not fully amortized;
(b) An interest rate without as least as
prominently disclosing the annual percentage rate of the note;
(c) A statement or representation that the
person can make or negotiate "low doc/no doc," "no income/no asset," "alt doc,"
"stated income," "stated asset," "no ratio," or similar loan products without
at least as prominently disclosing that these products may have a higher
interest rate, more points, or more fees than other products that require
income documentation;
(d) An
interest rate or annual percentage rate expressed in less than three decimal
places, provided that ending zeros following the decimal point may be
omitted;
(e) An offer to procure,
arrange, or otherwise assist a borrower to obtain a mortgage loan on terms
which the person cannot, does not intend, or does not want to provide, or which
the person knows or should know cannot be reasonably provided;
(f) A statement or representation that all or
most borrowers may or will qualify for a loan or that persons with bad credit
histories or no credit histories may or will qualify for this loan unless the
person can demonstrate that borrowers with bad credit or no credit have been
routinely and successfully qualified for loans by that lender;
(g) Any statement or representation that
would be in violation of Regulation X, 24 C.F.R. Part 3500 regarding kickbacks
and unearned fees, including soliciting referrals with a promise to pay the
advertising costs of any settlement provider;
(h) Any statement or representation that
would be in violation of Regulation Z, 12 C.F.R. Part 226, regarding
advertising;
(i) The phrase
"wholesale rates" when the advertising is directed to or accessible by the
public;
(j) Any statement or
representation about a loan that carries the potential for negative
amortization without clearly identifying that potential and without at least as
prominently disclosing:
(A) The market or
fully indexed rate;
(B) The term of
the reduced payments;
(C) The term
of the entire loan; and
(D) The
annual percentage rate;
(k) Official looking emblems or logos, such
as eagles, crests, or flags, which resemble a format similar to that used by
any governmental agency;
(L)
Envelopes which resemble an official government mailing, from entities such as
the Internal Revenue Service, U.S. Treasury, a state taxing authority, or other
governmental mailer;
(m) Slogans
such as "Buy U.S. Savings Bonds" without at least as prominently disclosing
that the mailing is an advertisement and not from a government
agency;
(n) The name or logo of a
financial institution or the holder of an existing loan when the person
responsible for the advertisement or named in the advertisement has no
association, affiliation or cooperative agreement with the financial
institution or holder of the loan, without at least as prominently disclosing
that person's name and the following statements:
(A) "This is an advertisement";
(B) "This is an offer for a new loan";
and
(C) "This offer is not related
to your existing mortgage lender or holder of your loan".
(o) Terms such as "verified as eligible",
"preapproved", "prequalified" or similar words or phrases, without at least as
prominently disclosing language that describes prerequisites to qualify for the
loan, including, but not limited to, income verification, credit check, and
property appraisal or evaluation;
(p) Solicitations from a particular mortgage
loan originator or a group of mortgage loan originators without the unique
identifier of each mortgage loan originator;
(q) Advertisements pertaining to a particular
mortgage loan originator or a group of mortgage loan originators without the
unique identifier of each mortgage loan originator;
(r) Promotional materials pertaining to a
particular mortgage loan originator or a group of mortgage loan originators
without the unique identifier of each mortgage loan originator; and
(s) Websites if the website lists the
mortgage loan originator's name in relation to residential mortgage lending
without the unique identifier of the particular mortgage loan
originator.
(2) All advertisements a mortgage banker or mortgage broker disseminates by any means must contain the mortgage banker or mortgage broker's Oregon-issued license number, the mortgage banker or mortgage broker's name, or the mortgage banker or mortgage broker's assumed business name that conforms to a name on file with the director.
Stat. Auth.: ORS 86A.136 & 86A.163
Stats. Implemented: ORS 86A.115, 86A.154, 86A.163
Disclaimer: These regulations may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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