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How to Stay Compliant: with Mortgage Advertising Regulations

Barry Jilin

Barry Jilin

About author

Highly accomplished, results-proven financial transactions professional with 18 years of experience elevating company performance by capturing new business opportunities and minimizing risk.

Sep 14, 2023

Staying compliant with mortgage advertising regulations is not only a legal necessity but also pivotal in establishing trust and ethics in the mortgage industry. Adhering to these rules safeguards consumers, promotes transparency, and bolsters a healthy market.


This comprehensive guide will explore key guidelines for mortgage lenders and brokers to maintain compliance, including aspects like Fair Housing and anti-steering practices.


Familiarize yourself with federal laws

Thoroughly Understand Applicable Laws:
A solid foundation begins with a comprehensive understanding of relevant advertising regulations. Familiarize yourself with federal laws such as the Truth in Lending Act (TILA), Real Estate Settlement Procedures Act (RESPA), Equal Credit Opportunity Act (ECOA), Fair Housing Act, and regulations related to anti-steering practices. State-specific regulations must also be considered to ensure full compliance.

Transparently Disclose Key Terms:
Mortgage advertisements must present all key terms transparently. Essential information, including interest rates, loan amounts, loan terms, annual percentage rates (APRs), and fees, should be presented clearly and without misleading language. Avoid using a fine print that could obscure important details.

Eliminate Misleading Statements:
All claims made in advertisements must be accurate and not misleading. Avoid creating unrealistic expectations or misrepresenting the terms and conditions of the mortgage products you offer.

Inclusive Fair Housing Compliance:
Adhering to Fair Housing regulations is paramount. Ensure that your advertisements do not contain any discriminatory language or visuals that could imply a preference for or exclusion of certain groups based on race, color, religion, sex, national origin, familial status, or disability.

Anti-Steering Practices:
Anti-steering practices are essential to ensure that borrowers are presented with a range of suitable loan options and are not unduly influenced or guided toward particular products. Avoid steering borrowers towards specific loan terms, products, or features that may not be in their best interest.

Mandatory Disclosures:
Certain information, such as the Equal Housing Opportunity logo, "Advertised Terms" disclosure, and the Nationwide Mortgage Licensing System and Registry (NMLS) ID, is mandatory in mortgage advertising. Display these disclosures prominently in all your ads.

Honesty in Qualification Representations:
While showcasing the benefits of your mortgage products, accurately represent qualification requirements. Clearly outline the criteria borrowers must meet to be eligible for the advertised rates or terms.

Avoid Triggering Terms:
Certain terms, like "free" or specific loan terms, may require additional disclosures under the regulations. Be aware of these trigger terms to ensure proper compliance.

Regularly Update Advertisements:
Keep your advertisements up-to-date to reflect the most accurate terms, rates, and fees. Outdated or incorrect information can lead to compliance issues and consumer confusion.

Document and Archive:
Maintain meticulous records of all advertising materials, including digital ads, print content, and website information. Having a well-organized record can assist in the case of audits or compliance inquiries.

Continuous Staff Training:
Provide comprehensive training to all staff involved in advertising to ensure they understand and adhere to mortgage advertising regulations, including Fair Housing compliance and anti-steering practices.

Monitor Third-Party Advertising:
Ensure that any third-party advertisers or affiliates you work with are also compliant with mortgage advertising regulations and Fair Housing laws.

Perform Periodic Self-Audits:
Regularly conduct internal audits to assess your advertising practices and promptly address any potential areas of non-compliance.

Seek Legal Guidance:
If you're uncertain about any aspect of mortgage advertising regulations, including Fair Housing compliance and anti-steering practices, consult legal professionals who specialize in mortgage compliance for accurate guidance.

If you're uncertain about any aspect of mortgage advertising regulations, including Fair Housing compliance and anti-steering practices, consult legal professionals who specialize in mortgage compliance for accurate guidance.

By following these comprehensive guidelines, including a strong commitment to Fair Housing compliance and anti-steering practices, you can navigate mortgage advertising regulations confidently and maintain a reputation built on transparency, integrity, and compliance.


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