On August 19, 2011, the Federal Trade Commission (“FTC”) issued the Mortgage Acts and Practices – Advertising Rule, also known as the “MAP” rule (the “MAP Rule” or the “Rule”). The MAP Rule “…, among other things: prohibits any misrepresentation in any commercial communication regarding any term of any mortgage credit product; and imposes certain recordkeeping requirements.” The MAP Rule affects all individuals or entities that engage in dissemination of information about mortgages (in virtually any form or format), specifically residential mortgages and related mortgage products, in a commercial setting. It is important to note that real estate agents and brokers are included under the scope of this Rule if they engage in disseminating information relating to mortgages affecting dwellings as defined under the Rule.
If you or your office maintain a mortgage calculator on your website or handout the latest rates publically posted by your three favorite lenders or consistently recommended mortgage broker, and provide to consumers lists of the mortgage products and the current rates last offered by such lenders, you will fall under the new MAP Rule. Failure to comply has severe consequences.
Click here to read more.
