Daily News and Information for the Mortgage Loan Originator
Mortgage Ads Under the Microscope
Monday, August 27, 2007
- By Staff Writer, Originator Times
NEW YORK, NY – Regulators are monitoring television ads as competition among the remaining mortgage lenders heats up, as mortgage applications diminish.
Federal officials and various states are keeping a closer eye on ads promising low payments as the Federal Reserve tightens credit while borrowers fall behind in their payments, The New York Times said Saturday.
Industry experts said, even though mortgage applications appear to be strong many applicants are applying at multiple lenders not knowing if the lender will still be in business when the loan is ready to settle.
Internet advertising alone by mortgage companies reached $378 million in the first half of 2007, The Times said, and has topped $3 billion for all media since 2000.
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FTC Warns 200 Mortgage Advertisers That Ads Violate TIL The Federal Trade Commission has issued up to 200 warnings to mortgage brokers and lenders, and media outlets that carry their advertisements for home mortgages, that some of the advertising claims currently appearing in Web sites, newspapers, magazines, direct mail, and unsolicited e-mail and faxes may violate federal law.
